Income/Franchise:
Connecticut: CORRECTION from Last Week’s State Tax Matters, Issue 2024-21: Pending Bill Would Extend NOL Carryforward Period and Create Deduction for Shift to Combined Reporting
H.B. 5524, passed House and Senate 5/22/24. A pending bill, if enacted into law, would extend the state corporation business tax net operating loss (NOL) carryforward period from 20 to 30 income years, applicable for NOLs incurred in income years starting on or after January 1, 2025. If enacted into law, the pending legislation also would, effective January 1, 2025, permit certain combined groups meeting specified qualifications to deduct, over a 30-year period, the amount necessary to offset the increase in the valuation allowance against NOLs and tax credits in Connecticut that resulted from Connecticut’s shift to combined reporting, which was first implemented in Connecticut in the 2016 income year.
Last week’s “State Tax Matters, Issue 2024-21” prematurely reported that Connecticut House Bill 5524 was signed into law; however, Connecticut House Bill 5524 remains pending as of early this week. Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
