CA AB2166

Conforms California's net operating loss (NOL) deduction rules to the federal CARES Act by allowing a five-year NOL carryback for losses in taxable years beginning on or after January 1, 2018, and before January 1, 2021.

Permits taxpayers to file a return for the first six months of a taxable year if claiming a NOL carryback under the CARES Act provision, with filing deadline of September 1 of the year to which the loss is attributable.

Applies the five-year carryback provision to both Personal Income Tax Law (Section 17276) and Corporation Tax Law (Section 24416) with corresponding amendments to related sections.

Requires the Franchise Tax Board to annually publish data on the number of taxpayers utilizing the NOL carryback allowed by this act.

Declares that allowing the five-year NOL carryback serves the public purpose of jumpstarting California's economic recovery from the COVID-19 pandemic and does not constitute a prohibited gift of public funds.