On October 8, 2010, the California budget impasse finally ended when Governor Arnold Schwarzenegger signed the California budget into law. In conjunction with the passage of the budget, a trailer bill, Senate Bill 858, was subsequently enacted into law on October 19, 2010.

This bill contains several key tax provisions noted below:

• Net Operating Loss (NOL) Suspension and Delay of Carrybacks
• New Rule for Taxpayers Using Standard Apportionment Method
• Safe Harbor for Large Corporate Understatement Penalty