2009 Louisiana Laws TITLE 47 Revenue and taxation :: RS 47:287.86 Net operating loss deduction

§287.86.  Net operating loss deduction

A.  Deduction from Louisiana net income.  Except as otherwise provided, there shall be allowed for the taxable year an adjustment reducing Louisiana net income in an amount equal to the aggregate of:

(1)  The net operating loss carryovers to such year, plus

(2)  The net operating loss carrybacks to such year.

B.  Net operating loss carrybacks and carryovers.  The taxable years to which a Louisiana net loss may be carried shall be:

(1)  A net operating loss carryback to each of the three taxable years preceding the taxable year of such loss, unless carryback treatment is relinquished pursuant to R.S. 47:287.86(D).

(2)  For losses incurred for taxable years beginning before January, 1984, a net operating loss carryover to each of the five taxable years following the taxable year of such loss.  For losses incurred for taxable years beginning on or after January 1, 1984, a net operating loss carryover to each of the fifteen taxable years following the taxable year of such loss.

C.  Manner and amount of carrybacks and carryovers.  The entire amount of Louisiana net loss for any taxable year, hereinafter the "loss year", shall be carried back to the earliest of the taxable years allowed, unless an election to relinquish carryback treatment is made, in which case such loss shall be carried to the earliest of the taxable years allowed for carryovers.  The portion of such loss which shall be carried to each of the other taxable years allowed by Subsection B shall be the excess, if any, of the amount of such loss over the aggregate of the Louisiana taxable income for each of the prior taxable years to which such loss may be carried.  For the purposes of this Subsection:

(1)  Louisiana taxable income shall not be adjusted to less than zero.

(2)  In calculating the aggregate Louisiana taxable incomes in cases where more than one loss year must be taken into account, the various net operating loss carryovers and carrybacks to such taxable year are considered to be applied in reduction of Louisiana net income in the order of the taxable years from which such losses are carried over or carried back, beginning with the loss for the earliest taxable year.

D.  Election to relinquish carryback.  Any taxpayer may make an election to relinquish the carryback treatment allowed and have its Louisiana net loss treated only as a carryover.  Such election shall be made as prescribed by the secretary.

E.  Statement with tax return.  Every corporation claiming a net operating loss deduction for any taxable year shall file with its return for such year a concise statement setting forth the amount of the net operating loss claimed and all material and pertinent facts relative thereto, including a detailed schedule showing the computation of the net operating loss deduction.

F.  Adjustment dependent upon Louisiana net loss carryback.  If in computing the net operating loss deduction the taxpayer is entitled to a carryback which cannot be ascertained at the time the return is due, the deduction, if any, shall be computed without regard to such carryback.  When the taxpayer ascertains the correct amount of such carryback, a claim for credit or refund of the overpayment, if any, resulting from the failure to compute the deduction for the taxable year with the inclusion of such carryback may be filed within the prescriptive period, or the taxpayer may file an application for a tentative refund as provided in Subsection G.

G.  Tentative refund.  A taxpayer may request a tentative refund resulting from the application of a net operating loss carryback in the manner and with forms prescribed by the secretary.  If the tentative refund is paid, the secretary may recover any amount thereof determined not to be an overpayment through any collection remedy authorized by R.S. 47:1561 within two years from December thirty-first of the year in which the refund was paid.  Any tentatively refunded amount determined not to be an overpayment shall bear interest at the rate provided in R.S. 47:1601, which shall be computed from the date the tentative refund was issued to the date payment is received by the secretary.

H.  Interest on refunds.  Any amount actually refunded as an overpayment resulting from the application of a net operating loss carryback, tentative or otherwise, shall bear interest at the rate provided in R.S. 47:1624, which shall be computed:

(1)  From the latest of the following dates:

(a)  Ninety days after the date the request for tentative refund or claim for refund (amended return) is filed.

(b)  Ninety days after the due date of the loss year return without regard to extensions of time to file.

(2)  To the date such refund is issued by the secretary.

I.  Net operating loss carryovers.

(1)  Notwithstanding any other provisions of this Chapter to the contrary, the acquiring corporation shall succeed to and take into account, as of the close of the day of distribution or transfer, the aggregate net operating loss carryovers of the distributors or transferor corporation as determined under this Section, subject to federal law and the limitations provided thereunder.

(2)  Net operating losses generated after the effective date of a reorganization cannot be carried back to a corporation that does not survive the reorganization, unless the reorganization is a reorganization under Internal Revenue Code Section 368(a)(1)(F).  For purposes of this Part, the surviving entity of a reorganization under Internal Revenue Code Section 368(a)(1)(F) is the same entity as the transferor entity, and the reorganization will be treated as a mere change in form.

Acts 1989, No. 770, §1, eff. Jan. 1, 1989; Acts 1990, No. 849, §2, eff. for taxable years beginning after Dec. 31, 1989; Acts 1992, No. 1083, §1, eff. for all open taxable periods; Acts 2002, No. 10, §1, eff. June 7, 2002.