When can an Illinois Net Loss Deduction (NLD) be used?

NLD can be used to reduce the base income allocable to Illinois only if the loss year return and all other returns have been filed and to the extent the loss was not used to offset income from any other tax year. For Illinois net losses in tax years ending on or after December 31, 2003, Illinois net losses can no longer be carried back, and can only be carried forward for 12 years. Illinois net losses are used in order beginning with the first year with taxable income after the loss year.

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