President Signs NOL Tax Relief
Net operating loss (NOL) tax relief that will allow struggling companies to get quick cash refunds from the IRS by using either their 2008 or 2009 losses to offset taxes paid in the prior five years has been signed by President Obama into law.
The new NOL law is designed to provide relief for many manufacturers who are struggling in the current weak economy and need cash to continue operations, preserve jobs and make critical investments.
According to the National Association of Manufacturers (NAM), this temporary tax relief is available to all size companies. There is a temporary limit in year five of the carryback: any refunds for taxes in the prior fifth year would be reduced by 50%. There is no limit in the refunds for taxes paid in the fourth, third, second or first year of carryback.
NAM led the broad industry NOL Coalition with a campaign promoting legislative action to strengthen the recent NOL carryback relief by making it available for medium and large companies, too.
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