Net Operating Losses (NOL) for Corporations

A net operating loss occurs when a taxpayer has allowable deductions that exceed taxable income for a given tax year. This negative taxable income may be carried forward as a deduction to reduce taxable net income in future years. The carryforward period is up to 15 years.

If your return covers less than 12 months, it is considered a full taxable year for NOL carryforward purposes.

The NOL deduction is limited to a percentage of a corporation's taxable income.

• For tax years beginning after December 31, 2017, and before January 1, 2024, the NOL deduction is limited to 80% of the corporation's taxable income.
• For tax years beginning after December 31, 2023, the NOL deduction is limited to 70% of the corporation's taxable income.

For more information, see Minnesota Statute 290.095  and Schedule NOL.