Instructions for Form NYC-2.4
 Net Operating Loss Deduction (NOLD)                                                                                    2022

GENERAL INFORMATION                                                  The NOLD is limited in any tax year to the amount required to re-
                                                                     duce the tax on the allocated business income base to the higher 
Form NYC-2.4 is used by a taxpayer subject to tax under Sub-         of the capital base tax or the fixed dollar minimum tax.  For a 
chapter 3-A of Title 11 of the NYC Administrative Code (Ad.          combined group, the NOLD is limited in any tax year to the 
Code) to compute the net operating loss deduction (NOLD) al-         amount required to reduce what would be the tax on allocated 
lowed in the computation of the business income base by Ad.          combined business income after addback of income previously 
Code section 11-654.1(3) for tax years beginning on and after        reported as investment income to the higher of the combined cap-
January 1, 2015.  It is also used to make the election to waive the  ital base or the fixed dollar minimum tax of the designated agent.   
carryback of a net operating loss (NOL) in the year in which such     
NOL occurs, as well as to report the specific tax years from         The NOLD does not include any NOL incurred during any tax 
which NOLs have been used in the computation of the business         year beginning prior to January 1, 2015, or during any tax year in 
income base.  Therefore, Form NYC-2.4 must be filed for every        which the taxpayer was not subject to tax under Subchapter  3-A.   
tax year, even when no NOLD is being used in the computation         This includes any tax year in which the taxpayer was subject to 
of the business income base.  Failure to file Form NYC-2.4 each      tax under Subchapters 2 or 3 of this Chapter.  However, any tax 
tax year may result in a delay receiving NOLD benefits.  Com-        year beginning after January 1, 2015 in which the taxpayer was 
bined groups need to file only one Form NYC-2.4, computed on         subject to tax under Subchapters 2 or 3 of this Chapter must count 
a combined group basis, for their group.  If filing an amended re-   as a tax year for purposes of determining the number of tax years  
turn to claim a carryback of an NOL, you must file Form NYC-         to which the NOL may be carried forward.  See Ad. Code sec-
2.4 with the amended return.                                         tion 11-654.1(3)(e).  
                                                                      
Affiliations Schedule Requirements for Net Operating Losses          The NOLD is not limited to the amount allowed under Internal 
(NOLs) or Amended Returns Regarding Previous Tax Years:              Revenue Code (IRC) section 172.  A taxpayer that files as part of 
Taxpayers with any NOLs from any tax year to be carried back to      a federal consolidated return but on a separate basis for purposes 
previous tax years, or with any NOLs from previous tax years to      of  Subchapter 3-A must compute its deduction and loss as if it 
be carried forward to any tax year, must complete and submit an      were filing on a separate basis for federal income tax purposes.   
affiliations schedule for those tax years if an NOL is to be carried  
forward from or back to those tax years.  Use the affiliations       If there are two or more NOLs, or portions thereof, carried back 
schedule that is part of the 2022 NYC-2A form for the relevant       or carried forward to be deducted from allocated business income 
tax year.                                                            in one particular tax year, the earliest NOL incurred must be ap-
                                                                     plied first. 
An NOL is the amount of a business loss incurred in a particular      
tax year, multiplied by the allocation factor for that year as de-   An NOL may be carried back three tax years preceding the tax 
termined under Ad. Code section 11-654.  For a combined return,      year of the loss (the loss year).  However, a loss cannot be car-
a combined NOL is the combined business loss incurred in a par-      ried back to a tax year beginning before January 1, 2015.  The 
ticular tax year, multiplied by the combined allocation factor for   loss is first carried to the earliest of the three tax years.  If it is not 
that year as determined under Ad. Code section 11-654.3(5).          entirely used in that year, the remainder is carried to the second 
                                                                     tax year preceding the loss year, and any remaining amount is 
NOLs that are incurred for tax years beginning on or after Janu-     carried to the tax year immediately preceding the loss year.  Any 
ary 1, 2015, are applied in the computation of the business in-      unused amount of loss then remaining may be carried forward for 
come base and cannot be carried back to tax years that began         as many as 20 tax years following the loss year.  Losses carried 
before January 1, 2015.                                              forward are carried forward first to the tax year immediately fol-
                                                                     lowing the loss year, then to the second tax year following the 
The NOLD is the amount of NOL or NOLs from one or more tax           loss year, and then to the next immediately subsequent tax year or 
years that are carried forward or carried back to a particular tax   years until the loss is used up or the 20th tax year following the 
year and allowed to reduce business income in such tax year.  For    loss year, whichever comes first.  
a combined return, a combined NOLD is the amount of combined          
NOL or NOLs from one or more tax years that are carried for-         For a corporation that files a combined return, either in the tax 
ward or carried back to a particular tax year and used in the com-   year the NOL is incurred or in the tax year in which a deduction 
putation of the combined business income base in such tax year.      is claimed on account of the loss, the combined NOLD is deter-
                                                                     mined as if the combined group is a single corporation and, to the 
The NOLD must be applied in the computation of the business in-      extent possible and not otherwise inconsistent with Ad. Code 
come base after the prior net operating loss conversion (PNOLC)      section 11-654.3(4)(a), is subject to the same limitations that 
subtraction (see Form NYC-2.3, Prior Net Operating Loss Con-         would apply for federal income tax purposes under IRC sections 
version (PNOLC) Subtraction).                                        381-384 and/or separate return limitation year (SRLY) and the 
                                                                     code of federal regulations as if such corporation had filed for 

 Instructions for Form NYC-2.4 - 2022                                                                                        Page 2

such tax year a consolidated federal income tax return with the      Computation of net operating losses (NOLs) available to be 
same corporations included in the combined return.  If a corpo-      used, the amount to be used, and the amount to be carried 
ration files a combined return, regardless of whether it filed a     forward. 
separate return or consolidated return for federal income tax pur-    
poses, the NOL and NOLD for the combined group must be               Lines 5a through 7e - All amounts should be entered as positive 
computed as if the corporation had filed a consolidated return       values. 
for the same corporations for federal income tax purposes.  Ad.       
Code section 11-654.3(4)(d)(3).                                      Computation of net operating loss (NOL) to be used  
                                                                      
In general, any NOL carryover from a year in which a combined        Lines 5a through 5h - The total NOLs available to be used in the 
return was filed shall be based on the combined NOL of the           current tax year (entered on line 5h) are computed by first taking 
group of corporations filing such return.  The portion of the        the NOL carryforward from the preceding tax year's Form NYC-
combined loss attributable to any member of the group that files     2.4 (generally Line 7e),  then making adjustments on lines 5b 
a separate return for a succeeding tax year will be an amount        through 5f.  If filing an amended return due to claiming an NOL 
bearing the same relation to the combined loss as the NOL of         carryback, enter the amounts from the original lines 5a and 5b. 
such corporation bears to the total NOL of all members of the         
group having such losses to the extent that they are taken into      Line 5c - If filing an amended return to claim an NOL carryback 
account in computing the combined NOL.  Ad. Code section             or subsequent amended return after claiming an NOL carryback, 
11-654.3(4)(d)(4).                                                   enter the full amount of the loss available to be carried back. Oth-
                                                                     erwise enter 0. 
Election to waive carryback.                                          
                                                                     Line 5e  - Enter 0; no entry is made on this line until at least 20 
You may elect to waive the entire carryback period with respect      tax periods after the first return filed for the period beginning on 
to an NOL.  You must make the election on your original timely       or after January 1, 2015. 
filed return (determined with regard to valid extensions) for the     
tax year of the NOL for which the election is to be in effect.  Once Line 5f - Enter the City NOL carryforward that is unavailable to 
an election is made for a tax year, it is irrevocable for that tax   be used in the current year due to limitations under IRC sections 
year.  You must make a separate election for each loss year.  This   381-384 and by SRLY.  See Schedule B, column G instructions. 
election applies to all members of a combined group.  See Ad.         
Code section 11-654.1(3)(g).  To make the election, check “YES”      NOLD to be used in the current tax year 
on line C.                                                            
                                                                     Line 6 - The amount of NOLD, after all applicable NOL limita-
LINE INSTRUCTIONS                                                    tions are applied in the current year, cannot be more than the 
                                                                     amount on line 4.  Enter on line 6 the lesser of line 4 or line 5h.  
Name as Shown on NYC-2 or NYC-2A.                                    Also enter this amount on NYC-2 or NYC-2A, Schedule B, line 
When filing a combined return, enter the legal name and EIN of       35.  Enter all amounts as a positive value. 
the group’s designated agent.                                         
                                                                     Computation of NOL carryforward 
SCHEDULE A –                                                          
                                                                     Line 7a - If the current year's Form NYC-2 or NYC-2A, Sched-
If the amount on Form NYC-2 or NYC-2A, Schedule B, line 34,          ule B, line 36 is less than zero, enter that amount on this line.  
is zero or a loss:                                                   However, this amount must be reduced by any amount carried 
                                                                     back to prior years.  If the current year's Form NYC-2 or NYC-
• Enter 0 on lines 1 through 4 and line 6.                           2A, schedule B, line 36 is zero or greater, enter 0. 
• Complete lines 5a through 5h and lines 7a through 7e.               
                                                                     Line 7c - Enter the NOL carryforward of members who left the 
If the amount on Form NYC-2 or NYC-2A, Schedule B, line 34,          group during the current year.  Include members that left the 
is a gain, complete lines 1 and 2, and:                              group at the close of business at the end of the current year.  Do 
                                                                     not include any amount used in the current year. 
 If line 1 is greater than line 2, complete lines 3 through 7e.       
 If line 2 is greater than or equal to line 1:                       Line 7e - Subtract line 7d from line 7b and enter the result.  Car-
                                                                     ryforward this amount to next year's Form NYC-2.4, Schedule 
 • Enter 0 on lines 3 and 4.                                         A, line 5a. 
 • Complete lines 5a through 5h.                                      
 • Enter 0 on line 6.                                                SCHEDULES B and C 
 • Complete line 7a through e.                                        
                                                                     Only Form NYC-2A filers complete Schedules B and C. Sched-

 Instructions for Form NYC-2.4 - 2022                                                                                   Page 3

ule B must include only new members.  Schedule C must in-            Column C: 
clude only those members for which this is the last year of in-      When the amount from Column B is negative, enter the negative 
clusion in the combined group.                                       amount in Column C.  If Column B is positive, enter 0.  
                                                                      
If you have more detail than will fit on the lines provided in these Column D: 
schedules, attach additional sheets in the same format.  Include     Include the amount of the NYC Net Operating Loss utilized by 
the legal name and EIN of the corporation as shown on Form           the taxpayer in each of the years listed since the year generated. 
NYC-2.4, page 1, along with the title of the schedule to which       Any NYC Net Operating Loss amount carried back to a previous 
the attachment applies, and attach, along with Form NYC-2.4, to      year should be reflected in Column D in the year or period in 
your return.                                                         which the Net Operating Loss was generated. Except as indicated 
                                                                     in the previous sentence, in any tax period in which an NYC NOL 
SCHEDULE B – New members included in the combined                    is generated, you may not have an NYC NOL utilized. 
group for the current tax period; Form NYC 2-A filers only            
                                                                     Column E: 
Column C                                                             Since this form only includes NOLs incurred on or after January 
For each new member that is included in the combined group in        1, 2015, none of these losses will expire in 2022. 
this tax period, but was not included in the combined group in        
the tax period immediately preceding this tax period, enter the      Column F: 
amount of unused NOL available on the first date in which the        For the earliest year from which an NYC Net Operating Loss uti-
member was included in the combined group.  If the new mem-          lized in the current year is generated, the amount in Column F 
ber's unused NOL on this date was zero, enter 0.                     should be the same as the amount in Column C, unless the tax-
                                                                     payer has carried back an amount to a prior year in which case the 
Columns D and E                                                      amount in Column F is the amount in Column C, less the amount 
Enter the new member's tax period beginning and ending dates.        in Column D. For all subsequent years, except the current year, 
 
                                                                     the amount in Column F is the amount in Column F for the im-
Column G 
                                                                     mediately preceding year, plus the amount in Column C, less the 
If the corporation in column A has NOLs listed in column C that are 
                                                                     amount, if any, in Column D. For the current year on line 20 of 
limited by IRC sections 381-384 or SRLY, mark an  Xin the box.  
                                                                     Schedule D, the amount in Column F is the amount in Column F 
Attach a statement showing the computation of the limitation. 
                                                                     for the immediately preceding year, plus the amount in Column 
 
                                                                     C, less the amounts, if any, in Column D and/or Column E. (For 
SCHEDULE C – Entities no longer included in the combined 
                                                                     2022, there is no amount in Column E.)
group; Form NYC 2-A filers only 
 
Column C: 
For each member that was included in the combined group for 
any part of the group’s current tax period that is no longer part of 
the combined group’s subsequent tax period, enter the unused 
NOL available on the  last date in which the member was in-
cluded in the combined group.  If the former member's unused 
NOL available on this date was zero, enter 0. 
 
Columns D and E 
For each member listed in Column A, enter the member's tax pe-
riod beginning and ending dates. 
 
SCHEDULE D - NYC Net Operating Loss Deduction Sched-
ule (NOLD) 
 
NOTE: In any tax year where an NOL is generated, you may 
not have an NOL utilized  
 
Column A: 
If the form does not accurately reflect your tax years, e.g. short-
year filings, attach a schedule showing the information requested 
in each of the columns. 
Column B: 
Enter the amount from Form NYC-2 or NYC-2A, Schedule B, 
line 34.                                                                                                   NYC-2.4 Instructions - 2022