What are the limitations for using an Illinois Net Operating Loss?

What are the limitations for using an Illinois Net Operating Loss (NLD)?

For tax years ending on or after January 1, 2011 and prior to December 31, 2014, Corporations (other than s-corporations), the Illinois net operating loss is suspended.

For tax years ending on or after December 31, 2003, Illinois allows a carryforward provision of twelve years.  There is no carryback provision.

For tax years ending on or after December 31, 1999, but before December 31, 2003, Illinois net loss deductions (NLDs) must be carried back 2 years, then forward 20 years.  You may make the election to forgo the carryback period for these years; however, once the election is made, it is irrevocable.

Losses incurred in tax years ending before December 31, 1999, could be carried back and forward for the periods allowed under IRC Section 172 for the tax year in which the loss was incurred. 
In general, for tax years ending on or after August 5, 1997, and ending before December 31, 1999, losses must be carried back 2 years, then forward 20 years; and for tax years ending before August 5, 1997, loss must be carried back 3 years, then forward 15 years.

For more information about Illinois Net Loss Deductions, see the instructions for Schedule NLD or Schedule UB/NLD.

Submit a question