Bill > S1601

This bill extends the ability for financial institutions and utility corporations to use "net operating losses" (NOLs) to reduce their taxable income. An NOL occurs when a business's expenses exceed its income in a given tax year. Previously, these types of businesses had limitations on how they could use these losses to offset future profits. This legislation specifically allows for the carry-forward of NOLs sustained in tax years beginning on or after January 1, 2012, with a provision that such carry-forwards for financial institutions and public utility corporations will not be allowed as deductions for tax years beginning before January 1, 2015. It also clarifies that these NOLs, along with other tax credits, can be shared among members of a combined business group, including financial institutions and utility corporations, regardless of certain limitations on deducting losses, though carry-forwards from before the bill's effective date will only be allowed as previously permitted. These changes are effective for tax years beginning on or after January 1, 2011.