This bill changes the tax code so some businesses hit by certain declared disasters can transfer part of their unused general business tax credits. The change applies to carryforwards of the types of credits listed in section 38(a)(1) (specifically the credits described in clauses (ii) and (ix) of that section) that are carried to years after 2023. A business can transfer up to the amount of its "eligible expenditures" made for carrying out a trade or business in a qualified disaster area. "Eligible expenditures" are amounts paid or incurred on or before the last day of the second calendar year after the year the disaster was declared. The bill covers areas with a President-declared major disaster and areas the Governor has determined were affected by a State-declared disaster where the incident occurred after 2023. Companies in a consolidated group are treated as one taxpayer. The change applies to taxable years ending after enactment. The Treasury Department is also barred from requiring new online registration for certain past-year carryforwards until its registration tool is updated.
If you run a business that operated in an area with a qualifying presidential or State disaster declaration after 2023, you may be able to transfer part of specific unused general business tax credits. The amount you can transfer is limited to the eligible expenditures your business paid or incurred in the disaster area within the time window the bill sets. Businesses that file consolidated returns are treated as a single taxpayer for this rule.
No publicly available information on estimated federal revenue effects, costs, or budgetary estimates is included in the bill text provided.
No publicly available information about supporters' statements or legislative findings is included in the bill text provided.
No publicly available information about opponents' statements or objections is included in the bill text provided.