Bill > A4398

This bill clarifies how corporations determine the value of their unused net operating losses (NOLs) when transferring tax benefits. A net operating loss is essentially when a business's expenses exceed its income in a given year, which can be used to reduce future tax liabilities. The bill states that for the purpose of transferring these tax benefits, the "allocation factor" used to determine the value of the NOLs will be calculated based on the tax laws that were in effect for a tax period starting on January 1, 2002, even if current laws are different. This change is intended to apply to any tax benefits transferred on or after January 1, 2012, and the bill takes effect immediately.