CT HB05503

Extends the business operating loss carryover period from 20 years to 40 years for operating losses incurred in income years commencing on or after January 1, 2023.

Maintains the existing 5-year carryover period for operating losses incurred prior to January 1, 2000, and the 20-year period for losses incurred between January 1, 2000 and January 1, 2023.

Preserves the 50% net income limitation on operating loss deductions for income years commencing on or after January 1, 2015, allowing deductions limited to the lesser of 50% of net income or the remaining operating loss.

Allows combined groups with over $6 billion in unused operating losses from years before January 1, 2013 to elect to relinquish 50% of pre-2015 losses and utilize the remainder without limitations, capped at reducing tax to $2.5 million annually.

Becomes effective October 1, 2022 and amends Connecticut General Statutes section 12-217(a)(4).