Net Operating Losses (NOL) for Businesses

A net operating loss 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.

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

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