Bill > S1427

This bill extends the ability for financial institutions and utility corporations to carry forward net operating losses, which are the losses a business incurs in a given tax year that can be used to offset profits in future years. Specifically, it amends existing tax laws to allow these types of businesses to deduct net operating losses sustained in taxable years beginning on or after January 1, 2012, with a delayed application for financial institutions until taxable years beginning on or after January 1, 2014. The bill also clarifies that these carry-forwards, including those for tax credits, can be liberally shared among members of a combined business group, even if they are financial institutions or utility corporations, and regardless of limitations on deducting losses from other years, though losses or credits incurred before the bill's effective date will only be available as previously allowed by law. These changes are effective for tax years beginning on or after January 1, 2011.