Net Operating Losses

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 may be applied or carried over to reduce tax liability in other years.

Under Minnesota law, the NOL deduction is limited to 80% of the corporation's taxable income. Minnesota law does not distinguish between NOL carryovers generated before or after the law change.

For more information, see Minnesota Statute 290.095  and Schedule NOL.