Bill Text: CA AB11 | 2009-2010 | Regular Session | Enrolled

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Bill Title: Corporate reorganization: built-in losses.

Sponsorship: Partisan Bill (Democrat 10)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 401, Statutes of 2009. [AB11 Detail]

Download: California-2009-AB11-Enrolled.html

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BILL NUMBER: AB 11	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 27, 2009
	PASSED THE ASSEMBLY  AUGUST 31, 2009
	AMENDED IN SENATE  JULY 14, 2009
	AMENDED IN ASSEMBLY  APRIL 23, 2009
	AMENDED IN ASSEMBLY  MARCH 9, 2009

INTRODUCED BY   Assembly Member De Leon
   (Coauthors: Assembly Members Beall, Carter, Eng, Evans, Hill,
Jones, Lieu, and Salas)
   (Coauthor: Senator DeSaulnier)

                        DECEMBER 1, 2008

   An act to add Section 24458 to the Revenue and Taxation Code,
relating to taxation, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 11, De Leon. Corporate reorganization: built-in losses.
   The Corporation Tax Law, in specified conformity to federal income
tax laws, imposes certain limitations on the use of built-in losses
in conjunction with corporate reorganizations.
   This bill would clarify that a specified federal administrative
notice relating to those limitations does not apply for purposes of
taxes imposed under the Corporation Tax Law, as specified.
   This bill would declare that it is to take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 24458 is added to the Revenue and Taxation
Code, to read:
   24458.  Internal Revenue Service Notice 2008-83, 2008-42 I.R.B.
905, issued on October 20, 2008, relating to the treatment of
deductions under Section 382(h) of the Internal Revenue Code
following an ownership change, shall not be applicable for purposes
of taxes imposed under Part 11 (commencing with Section 23001) of
Division 2, of this code with respect to any ownership change
occurring at any time.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to timely clarify the estimated state tax revenues for
purposes of the current budget crisis, it is necessary that this act
go into effect immediately.