HB347 Summary

• Amends Alabama corporate income tax law to restrict net operating loss (NOL) carryforwards to only the corporation that sustained the loss, effective for tax years beginning January 1, 2011 and later.

• Permits NOL carryforwards in merger cases where the loss corporation is also the surviving corporation following the merger.

• Prohibits NOL deductions for corporations that change their state of incorporation or result from consolidations.

• Maintains a 15-year consecutive carryforward period for NOLs following the tax year in which they arose.

• Applies subdivision (6) restrictions before other NOL limitations and includes a severability clause with an effective date of the first day of the third month after passage and approval.