CA AB1936

Eliminates net operating loss carrybacks for all individual and corporate taxpayers by striking provisions that allowed carrybacks for losses beginning on or after January 1, 2011.

Modifies Sections 17276 and 24416 of the Revenue and Taxation Code to disallow use of net operating loss carrybacks while preserving carryforward provisions.

Extends carryover periods by one to two years for losses denied deduction during taxable years beginning January 1, 2008 through January 1, 2010.

Requires a two-thirds majority vote in both houses of the Legislature as the bill increases state revenues and constitutes a tax levy under Article XIII A of the California Constitution.

Takes effect immediately upon passage with carryover provisions allowing losses to be carried forward to the 20 taxable years following the year the loss was incurred.