The US state of California’s Senate Bill 167 proposes several revenue raising measures. The bill, which is still pending signature, pertains to corporate income tax and suspends net operating losses (NOLs) for the 2024, 2025, and 2026 tax years.
A USD 5 million cap will be imposed on using all business tax credits during this period. These revenue raising initiatives have been introduced in California before, given that similar measures were adopted for the 2020-2022 tax years.
The bill also includes corporate tax adjustments targeting oil and gas companies. Regarding sales tax, the bill eliminates the bad debt deduction for targeted retailers for three years and disallows it for lenders unless the relevant account is classified as worthless prior to 1 January, 2025.
