California now has NOL Carrybacks.

• Position: News - Net operating loss - Brief article

California law allows businesses, individuals, estates, trusts and exempt organization to use Net Operating Loss carryovers. NOLs generated in a taxable years beginning on or after Jan. 1, 2013, can be carried back two preceding taxable years. The law requires the "loss year" NOL amount back to the second taxable year before the loss year, and then any excess is back to the first preceding taxable year. Any loss not applied in the two preceding years is carried forward.

At first, the allowable NOL carryback percentage will vary. For an NOL incurred in a taxable year beginning on or...