If a C corporation incurred a net operating loss in 2017, it could carry the loss back two years and forward 20 years to offset income in those years. However, it may offset only 80 percent of the taxable income before the NOL deduction in those years.

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Prior to the Tax Cuts and Jobs Act (TCJA) of 2017, C corporations could carry back net operating losses (NOLs) two years and forward 20 years to offset 100% of taxable income. The TCJA then changed the rules, eliminating carrybacks for losses arising in tax years ending after December 31, 2017, and allowing losses to be carried forward indefinitely, but limiting the deduction to 80% of taxable income for losses arising in tax years beginning after December 31, 2017.

If a C Corporation Incurred a Net Operating Loss in 2017