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Baucus, Snowe Introduce NOL Carryback Relief Bill
The Net Operating Loss (NOL) Carryback Act — legislation to allow formerly profitable businesses to carry back losses incurred in 2008 and 2009 for five years — was introduced last week by Senate Finance Committee Chairman Max Baucus (D-Mont.) and senior committee member Olympia Snowe (R-Maine).
“The bottom line here is that this measure will help generate immediate cash for businesses and prevent further job loss, which is critical for our economic security,” said Baucus. “This bill offers tax relief that gives owners and entrepreneurs better means to make payroll and invest in new equipment, put people back to work and create new jobs when they can.”
“While the recently enacted economic stimulus bill included a modest NOL carryback provision to assist smaller firms, this legislation will help any company that has losses from 2008 or 2009 carry back those losses to offset taxes paid in the previous five years when they were profitable,” said Snowe. “This will go a long way in helping to keep more workers on payroll and stabilize overall operations."
Under the provisions of the economic stimulus package signed into law in February, businesses with average gross receipts of no more than $15 million over the prior three years and with a net operating loss in 2008 can elect to offset this loss against income earned in up to the five prior years.
Typically, an NOL can only be carried back for two years.
The NOL Carryback Act would expand current law to include small, medium and large firms. In addition, the bill would block companies that receive cash from the Trouble Asset Relief Program (TARP) from utilizing the tax incentive.
NAHB continues to support broad NOL relief. For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421.
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