Cal. Code Regs. tit. 18 § 24273(a)
A taxpayer who receives a loan from the Commodity Credit Corporation may, at its election, include the amount of such loan in its gross income for the income year in which the loan is received. If a taxpayer makes such an election (or has made such an election under Sections 23854 and 23854.1 of the Bank and Corporation Tax Law of 1954), then for subsequent income years it shall include in its gross income all amounts received during those years as loans from the Commodity Credit Corporation, unless it secures the permission of the Franchise Tax Board to change to a different method of accounting. Application for permission to change such method of accounting and the basis upon which the return is made shall be filed with the Franchise Tax Board, 1025 P Street, Sacramento, California, within 90 days after the beginning of the income year to be covered by the return.
__________
* This regulation is substantially the same as Section 26 CFR 1.77-1.
Cal. Code Regs. Tit. 18, § 24273(a)