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TAX ALERT |
Introduction
The Coronavirus Aid, Relief and Economic Security Act (the CARES Act or the Act) is a comprehensive plan that will affect the vast majority of US businesses and their employees. Among many other items, the Act will provide, when signed into law, four relief provisions specific to corporate taxpayers as follows:
- Five-year net operating loss (NOL) carryback provision;
- Fiscal year NOL carryback fix from the Tax Cuts and Jobs Act (TCJA) of 2017;
- Deferral of 80% income limitation on post-2017 NOLs to 2021;
- Immediate AMT tax credit refunds.
For many corporate taxpayers the five-year carryback provision is the largest benefit.
