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Net Operating Loss (NOL)
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For Unrelated Business Income Tax
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The Minnesota NOL for Unrelated Business Income Tax (UBIT) filers follows Minnesota Statute 290.095, which allows a 15-year carryforward and no carrybacks.
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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.
Note: The April 8, 2024 Minnesota Tax Bill changed the effective date for the NOL deduction. If you filed your 2023 Unrelated Business Income Tax Return before this law change, you may need to file an amended return to claim the additional NOL deduction.
Minnesota law does not distinguish between NOL carryovers generated before or after the law change.
No. The Minnesota NOL for UBIT filers now follows M.S. 290.095, which allows a 15-year carryforward and eliminates carrybacks. The NOL change applies to each tax year after December 31, 2017.
