(1)(a) A net operating loss deduction
shall be allowed in the same manner that it is allowed under the internal revenue
code except as otherwise provided in this section. The amount of the net operating
loss that may be carried forward and carried back for Colorado income tax
purposes shall be that portion of the federal net operating loss allocated to
Colorado under this article 22 in the taxable year that the net operating loss is
sustained.
(b)For losses incurred after December 31, 2017, the eighty percent limitation
set forth in section 172 (a)(2) of the internal revenue code shall apply without regard
to the amendments made in section 2303 of the March 2020 Coronavirus Aid,
Relief, and Economic Security Act, Pub.L. 116-136.
(2)With respect to individuals, estates, and tr
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(1) (a) A net operating loss deduction
shall be allowed in the same manner that it is allowed under the internal revenue
code except as otherwise provided in this section. The amount of the net operating
loss that may be carried forward and carried back for Colorado income tax
purposes shall be that portion of the federal net operating loss allocated to
Colorado under this article 22 in the taxable year that the net operating loss is
sustained.
(b) For losses incurred after December 31, 2017, the eighty percent limitation
set forth in section 172 (a)(2) of the internal revenue code shall apply without regard
to the amendments made in section 2303 of the March 2020 Coronavirus Aid,
Relief, and Economic Security Act, Pub.L. 116-136.
(2) With respect to individuals, estates, and trusts:
(a) A net operating loss incurred in a taxable year beginning prior to January
1, 1987, may be carried forward the same number of years a federal net operating
loss may be carried forward. Such net operating losses may not be carried back to
an earlier tax year.
(b) Net operating losses incurred in taxable years beginning on or after
January 1, 1987, may be carried back to the same years as is a federal net operating
loss incurred in such year; except that no such loss may be carried to a taxable year
beginning on or after January 1, 1987. Such losses may not be carried forward to
subsequent tax years.
(3) (a) Net operating losses of corporations generated in income tax years
commencing before January 1, 2021, may be carried forward for the same number of
years as allowed for a federal net operating loss. Net operating losses of
corporations may not be carried back to an earlier tax year.
(b) Net operating losses of corporations generated in income tax years
commencing on or after January 1, 2021, may be carried forward for twenty years.
Net operating losses of corporations may not be carried back to an earlier tax year.
(4) If a financial institution suffers a net operating loss for any taxable year
beginning on or after January 1, 1984, and before January 1, 2021, the amount of the
unused net operating loss may be carried forward to each of the fifteen years
following the taxable year of such loss. For the purposes of this subsection (4),
financial institution means any institution to which section 585 or 593 of the
internal revenue code applies.
(5) No corporation may carry forward a net operating loss to an income tax
year commencing prior to January 1, 2009, if, for such year, the corporation uses a
different method of allocating or apportioning income from the one it used in the
period in which the loss occurred, unless such different method is approved by the
executive director. A corporation may carry forward a net operating loss to any
income tax year commencing on or after January 1, 2009, regardless of the method
of allocating or apportioning income for such year.
(6) (a) Notwithstanding any other provision of this section, the maximum
amount of net operating loss that a corporation may subtract from federal taxable
income pursuant to section 39-22-304 (3)(g) for a tax year commencing on or after
January 1, 2011, but prior to January 1, 2014, is two hundred fifty thousand dollars.
(b) All net operating losses may be carried forward one additional year for
each tax year that a corporation is prohibited pursuant to paragraph (a) of this
subsection (6) from subtracting a portion of such net operating losses from the
corporation's federal taxable income.
(c) An amount equal to the amount of all net operating losses that a
corporation is prohibited pursuant to paragraph (a) of this subsection (6) from
subtracting from federal taxable income multiplied by a rate of interest equal to
three and one-quarter percent per annum for the period during which such net
operating losses are prohibited shall be added to the allowable net operating loss
that is carried forward by the corporation, and, for the purpose of section 39-22-304 (3)(g), shall be considered net operating loss.
Source: L. 64: R&RE, p. 777, � 1. C.R.S. 1963: � 138-1-59. L. 77: (5) added, p.
1795, � 2, effective May 26. L. 83: (1) amended and (2), (3), and (5)(a) repealed, p.
2097, �� 4, 5, effective January 1, 1984. L. 87: (6) added, p. 1458, � 1, effective May
4; entire section R&RE, p. 1446, � 17, effective June 22. L. 88: (5) added, p. 1315, � 10,
effective May 29. L. 2008: (5) amended, p. 966, � 10, effective January 1, 2009. L.
2010: (6) added, (HB 10-1199), ch. 13, p. 67, � 2, effective February 24. L. 2016: (4)
amended, (SB 16-189), ch. 210, p. 794, � 110, effective June 6. L. 2020: (1) amended,
(HB 20-1420), ch. 277, p. 1359, � 4, effective July 11; (3) and (4) amended, (HB 20-1024), ch. 135, p. 588, � 2, effective September 14.