Connecticut Governor Ned Lamont signed legislation extending the NOL carryforwards for Connecticut businesses to 30 years.
The legislation extends from 20 to 30 income years the period when corporations may carry forward an net operating loss (NOL) deduction for corporation business tax purposes for NOLs incurred in income years starting on or after January 1, 2025.
Also effective January 1, 2025, certain combined groups meeting specified qualifications are allowed to deduct, over a 30-year period, the amount necessary to offset the increase in the valuation allowance against NOLs and tax credits in Connecticut that resulted from the state’s shift to combined reporting.
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