AZ SB1392

Allows net operating losses (NOLs) arising in taxable periods beginning after December 31, 2020 to be carried back to each of the two preceding taxable years, compared to five years for NOLs from December 31, 2017 through December 31, 2020.

Extends the NOL carryover period to twenty succeeding taxable years for losses arising after December 31, 2020, allowing taxpayers to offset future income over a longer period.

Adds provisions to Arizona Revised Statutes sections 43-1021, 43-1022, and 43-1123 to clarify additions and subtractions related to NOL deductions under federal Internal Revenue Code section 172.

Applies retroactively to all taxable years beginning from and after December 31, 2017.