CA AB3208

Excludes from California state income tax gross income any covered loan amount forgiven under Section 1106 of the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) for taxable years beginning January 1, 2020 and later.

Applies the exclusion to both personal income tax (Section 17131.8) and corporation tax (Section 24308.6) under the Revenue and Taxation Code.

Defines "covered loan" using the same meaning as in the federal CARES Act Section 1106.

Takes effect immediately as a tax levy under Article IV of the California Constitution.