Income/Franchise:
Ohio: Release Addresses NOL Deductions Available under Municipal Net Profit Tax for TYs 2023 and Onward
Information Release – Municipal Net Profit Tax: MNP 2024-02 Update on Net Operating Loss Deductions, Ohio Dept. of Tax. (4/24). The Ohio Department of Taxation (Department) issued an information release explaining changes to the net operating loss (NOL) deductions available under Ohio’s municipal net profit tax for taxable years 2023 and thereafter, applicable to those taxpayers that have made a valid election to opt-in with the Ohio Tax Commissioner to have the State administer the municipal net profit tax under Ohio Revised Code section 718.80 (i.e., applicable to those taxpayers that elected into Ohio’s centralized filing regime). According to the guidance, beginning with taxable year 2023, the NOL carryforward deductions available to taxpayers are no longer subject to the 50% limitation that applied during the five-year phase-in period from taxable years 2018 through 2022. Note that this Department guidance also may have some relevance to those taxpayers that have not elected Ohio centralized filing and instead file the tax with each individual Ohio city/locality. Please contact us with any questions.
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