CA SB254

Allows taxpayers to transfer tax losses (including net operating losses) to unrelated parties under both Personal Income Tax Law and Corporation Tax Law.

For taxable years 2021-2025, excludes from gross income any amount received in exchange for a transferred tax loss if the taxpayer invests that amount in affordable housing projects within 180 days of receipt.

Defines "affordable housing" as housing affordable to households with gross income not exceeding 120 percent of area median income, with specific cost or rent limits.

Requires transferors to report tax loss transfers to the Franchise Tax Board with details including the transferee's taxpayer identification number and loss amount, and prohibits transferring the same loss to multiple parties.

Authorizes the Franchise Tax Board to adopt regulations to implement these provisions without following standard Administrative Procedure Act rulemaking requirements.