This bill changes the tax code to let certain businesses in disaster areas transfer part of their general business tax credit carryforwards. The transfer is limited to the amount of "eligible expenditures" the taxpayer paid or incurred while carrying out a trade or business in a qualified disaster area. "Qualified disaster areas" are places with a Presidential major disaster declaration after December 31, 2023, or places a Governor determines were affected by a State-declared disaster after that date. The rule covers carryforwards moved to taxable years beginning after December 31, 2023, and only those carryforwards tied to specific credits referenced in the tax code (clauses (ii) and (ix) of section 38(a)(1)). Members of a consolidated group filing one return are treated as a single taxpayer. The bill applies to taxable years ending after enactment. It also includes a special rule saying the Treasury cannot require online registration for the part of carryforwards tied to taxable years at or before the year the registration tool is updated for these rules.
If you are a business with general business credit carryforwards and you had operations in a qualified disaster area after December 31, 2023, you may be able to transfer some of those carryforwards. The amount you can transfer cannot exceed the eligible expenditures you made for carrying on your business in the disaster area and must meet the bill's timing rules. If your company is part of a consolidated group, the group is treated as one taxpayer for these rules.
No publicly available information on budgetary costs, revenue effects, or estimated expense reductions is included in the bill text or metadata provided.
No publicly available information on proponents' arguments, stated goals, or expected benefits is included in the bill text or metadata provided.
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