Net Operating Loss (NOL)

The Minnesota NOL for Unrelated Business Income Tax (UBIT) filers follows Minnesota Statute 290.095, which allows a 15-year carryforward and no carrybacks.

A net operating loss (NOL) occurs when a taxpayer has allowable deductions that exceed taxable income for a given tax year. This negative taxable income must be applied to the current year and then it may be carried over to reduce tax liability in future years.

• For tax years beginning after December 31, 2017, and before January 1, 2024, the NOL deduction is limited to 80% of the UBIT filer's taxable income.
• For tax years beginning after December 31, 2023, the NOL deduction is limited to 70% of the UBIT filer's taxable income.

Minnesota law does not distinguish between NOL carryovers generated before or after the law change.