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Oregon Department of Revenue |
Personal Tax and Compliance Division Program Services Section Policy & Systems Unit |
Tax Policy Update 04/02/09
For personal income tax purposes, Oregon is connected to the federal NOL carryback rules that were recently updated by the American Recovery and Reinvestment Act of 2009. NOL carrybacks and carryforwards are covered under ORS 316.014 which provides a rolling tie to federal carryback and carryforward laws in the IRC. As of today, this statute has not been changed by the legislature. For personal income tax purposes, Oregon allows the same carryback provisions for a 2008 NOL as allowed by the IRS (which is a choice of 2, 3, 4, or 5 years carryback). The taxpayer must use the same NOL carryback or carryforward for Oregon that is used for federal purposes unless the taxpayer does not have enough income to absorb the NOL in that year. In such cases, the NOL may be carried forward consistent with federal limits.
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