Exclusions
Cal. RTC § 24308.6
California Statutes
(
a) For taxable years beginning on or after January 1, 2019, gross income does not include any covered loan amount forgiven pursuant to
Section of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142), pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260), or pursuant to the PPP Extension Act of 2021 (Public Law 117-6). (
b) For taxable years beginning on or after January 1, 2019, gross income does not include any advance grant amount issued pursuant to
Section 1110(
e) of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), or pursuant to
Section of the Consolidated Appropriations Act, 2021 (Public Law 116-260). (c)
(1) Notwithstanding
Section 24425, for taxable years beginning on or after January 1, 2019, subsection (
a) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided. (2) Paragraph (1) of subsection (
a) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase “For purposes of the Internal Revenue Code of 1986” with “For purposes of this part.”
(3) The provisions of paragraph (1) of subsection (
a) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260), relating to paragraphs (2) and (3) of subsection (
i) of
Section 7A of the Small Business Act, shall not apply to an ineligible entity. (4) Paragraph (2) of subsection (
a) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply. (d)
(1) Notwithstanding
Section 24425, for taxable years beginning on or after January 1, 2019, subsection (
b) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.
(2) Subsection (
b) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase “For purposes of the Internal Revenue Code of 1986, in the case of any taxable year ending after the date of the enactment of this Act” with “For purposes of this part.” (3) Paragraphs (2) and (3) of subsection (
b) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity. (e)
(1) Notwithstanding
Section 24425, for taxable years beginning on or after January 1, 2019, subsection (
a) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.
(2) Subsection (
a) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase “For purposes of the Internal Revenue Code of 1986” with “For purposes of this part.” (3) Paragraphs (2) and (3) of subsection (
a) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity. (f)
(1) Notwithstanding
Section 24425, for taxable years beginning on or after January 1, 2019, subsection (
b) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.
(2) Subsection (
b) of
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase “For purposes of the Internal Revenue Code of 1986” with “For purposes of this part.” (
g) Notwithstanding
Section 17280, for taxable years beginning on or after January 1, 2019, subsection (
a) of
Section of Title III of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided. (
h) For purposes of this section, all of the following
definitions shall apply: (1) “Covered loan” has the same meaning as in
Section of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260). (2) “Advance grant amount” means an emergency Economic Injury Disaster Loan grant pursuant to
Section 1110(
e) of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), or a targeted Economic Injury Disaster Loan advance pursuant to
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260). (3) “Ineligible entity” means a taxpayer that either: (
A) Is a publicly traded company. (
B) Does not meet the reduction from the gross receipts requirements of
Section 636(a)(37)(A)(iv)(bb) of Title of the United States Code, as added by
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260). (4) “Publicly traded company” means a publicly traded entity as described in
Section of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260). (
i) The Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part of Division of Title of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section. (
j) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2019. (
k) The amendments made to this
section by