NOL Carryback: Temporary five-year NOL carryback becomes law

President Barack Obama on November 6 signed into law an unemployment insurance extension bill (H.R. 3548) with a provision that permits businesses with net operating losses (NOLs) in tax years 2008 or 2009 to carry back those losses for five years. The measure, which cleared the House and Senate earlier in the week, also modifies and extends the first-time homebuyer credit.

The bill's tax relief provisions are paid for by a delay in the effective date of the worldwide interest allocation election, an increase in the corporate estimated tax payments for certain large taxpayers in the third quarter of 2014, and an increase in the penalty for failure to file a partnership or S corporation return.