NOL Carry Forwards Change Effective August 1st

A corporation’s ability to utilize net operating loss carry forwards in Massachusetts changed, effective August 1.

• Losses incurred in tax years beginning prior to January 1, 2010 may be carried forward for five (5) years; they cannot be carried back.
• Losses incurred in tax years beginning on January 1, 2010 or thereafter may be carried for twenty (20) years; they may not be carried back to prior years. The loss that may be carried forward is determined by multiplying the loss by the corporation’s Massachusetts apportionment percentage for the tax year when the loss was incurred. A corporation may not carry forward a net operating loss that was generated prior to the time is became subject to tax in the Commonwealth.

Source: Mass Gen L § 30(5)(b)

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