MN SF4012

Net operating losses incurred during a taxable year can be carried over to the 15 taxable years following the loss year.

Qualifying corporations may elect to use an apportionment ratio of one for the loss year when determining the net operating loss deduction allowed, rather than the standard apportionment ratio.

A qualifying corporation is defined as one that apportions income under section 290.191, has zero apportionment formula factors in both numerator and denominator, and has its principal address and place of business in Minnesota.

Federal Internal Revenue Code sections 381, 382, and 384 provisions apply to net operating loss carryovers in corporate acquisitions, with section 382 limitations applied to net income before apportionment.

The changes are effective for taxable years beginning after December 31, 2019.