AR HB1788

Extends the net operating loss (NOL) carry-forward period for Arkansas income tax calculations on a phased schedule beginning January 1, 2017, increasing from 5 years to up to 10 years by 2021.

Establishes a phase-in schedule: 6 years for losses beginning 2017, 7 years for 2018, 8 years for 2019, 9 years for 2020, and 10 years for losses beginning 2021 and after.

Maintains existing 3-year carry-forward period for losses occurring before January 1, 1987, and keeps 5-year period for losses from January 1, 1987 through December 31, 2016.

Preserves 15-year carry-forward period for qualified medical companies and special 2-year extension for farming operation losses that expired under previous rules.

Applies the extended carry-forward limits to corporate asset acquisitions and includes technical corrections to statutory language throughout the code section.