Date corrected on corporate net operating loss limit

A new law corrects a drafting error and retroactively modifies the effective date for the corporate net operating loss limit change signed into law in 2023. A change that was inadvertently listed in the law as being for tax year 2023 has now been changed to tax year 2024.

The net operating loss deduction allows a corporation to use net operating losses from the previous 15 tax years to reduce its taxable income in the current tax year. Since 2019, the corporate net operating loss deduction has been limited to 80% of a corporation’s taxable income. In 2023, the legislature changed the limit from 80% to 70%.

Sponsored by Rep. Dave Lislegard (DFL-Aurora) and Sen. Ann Rest (DFL-New Hope), the law is in effect retroactively to tax year 2023.

HF3769*/SF3774/CH82

HF3769* / SF3774 / CH82