SB 1544 Summary

• Applies federal Internal Revenue Code Section 165(i) to losses sustained in Los Angeles and San Bernardino Counties from severe winds in November 2011, allowing taxpayers to claim deductions on the preceding year's tax return.

• Permits election of disaster loss deduction on original or amended returns filed by the due date (including extensions) for the taxable year in which the disaster occurred.

• Exempts net operating losses from the November 2011 severe winds from state laws that suspend, defer, reduce, or diminish net operating loss deductions.

• Applies equally to both personal income tax (Section 17207.12) and corporate tax (Section 24347.12).

• Takes effect immediately as a tax levy following Governor approval on September 7, 2012.