Section 316-24-241 - CORPORATE TAXPAYER; NEBRASKA NET OPERATING LOSSES COMPUTATION: NEBRASKA NET OPERATING LOSS CARRYOVER; LIMITATIONS241.01Calculating the Loss. A Nebraska net operating loss is computed on the basis of this regulation. 241.01A For a corporate taxpayer that is not subject to apportionment the Nebraska net operating loss is the federal taxable income or loss of the corporate taxpayer adjusted as provided in Reg-24-235.241.01B For a corporate taxpayer that is required to apportion its income to Nebraska, its Nebraska net operating loss must be computed in the following manner: 241.01B(1) The Nebraska adjustments in 235 are made to the federal taxable income or net operating loss of the unitary group prior to apportionment; and241.01B(2) The federal net operating loss as adjusted is then apportioned to Nebraska based on the apportionment factor of the corporate taxpayer.241.02Nebraska Net Operating Loss Carryover. For tax years beginning on or after January 1, 1987, a Nebraska net operating loss carryover may be allowed as a deduction in computing Nebraska taxable income.241.03Charitable Contribution Carryover. A Nebraska net operating loss carryforward must be adjusted for the amount of Nebraska charitable contribution carryover as apportioned, if appropriate, that increased the related federal net operating loss carryforward.241.04Limitations on Using a Nebraska Net Operating Loss Carryover.241.04A Number of years. 241.04A(1) For tax years beginning before January 1,2014, the net operating loss deduction will be allowed for each of the five tax years following the year of the loss.241.04A(2) For Nebraska net operating losses incurred in tax years beginning on or after January 1,2014, the net operating loss deduction will be allowed for each of the 20 tax years following the year of the loss.241.04B Reorganizations or Mergers. Hie carryforward of Nebraska net operating losses after reorganizations or mergers is limited to the same extent as the carryover of a net operating loss is limited under the provisions of the IRC. If the taxpayer files as a part of a consolidated return for federal purposes, and files a separate return for Nebraska purposes, the limitation on a Nebraska net operating loss carryforward must be determined as though a separate return was filed for federal purposes.241.04C Changes in Unitary Group. When a corporate taxpayer that has a Nebraska net operating loss carryforward becomes a member of a unitary group in a year in which the carryforward is still available, the net operating loss carryforward deduction cannot exceed the apportbnable income of the unitary group times a fraction. The numerator of the fraction is the Nebraska gross receipts of the corporation that generated the loss, and the denominator is the gross receipts of the unitary group.241.04D Taxable Income. For a corporate taxpayer, for losses incurred in taxable years beginning or deemed to begin on or after January 1, 2018, the carryback or carryforward of the loss in any tax year cannot exceed 80% of the taxable income on the Nebraska return without regard to the carryforward.316 Neb. Admin. Code, ch. 24, § 241
Adopted effective 7/5/2020