Small Business and Consumer Credit Act of 2026
Sponsored By: Representative Carey, Mike [R-OH-15]
Introduced
Summary
This bill would create a staggered net operating loss (NOL) system that lets certain banks elect year-specific carryback rules and a 20-year carryover. It targets defined "specified financial institutions" and sets different NOL timing for losses beginning in 2027, 2028, and 2029 and after.
Show full summary
- Banks and bank groups: A "specified financial institution" covers three categories of banks and bank members specified in the bill. Eligible lenders can opt in to the special NOL rules for their taxable year of loss.
- Year-specific NOL timing: For losses in taxable years beginning in 2027 the NOL is treated as a carryover to each of the next 20 taxable years. For losses in 2028 the NOL can be carried back to the preceding year and carried forward for 20 years. For losses in 2029 and later the NOL can be carried back to the two preceding years and carried forward for 20 years.
- Election and timing rules: Elections must follow rules the Secretary prescribes, be made by the tax return due date for the loss year, and are irrevocable for that taxable year. The changes include conforming cross-reference edits to section 172 and apply to taxable years beginning after December 31, 2026.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
New NOL rules for banks
This bill would give certain banks and closely related financial firms a special net operating loss (NOL) timetable. It would apply to losses from tax years starting after Dec 31, 2026. For 2027 loss years the NOL would carry forward for 20 years. For 2028 loss years the NOL would carry back one year and carry forward 20 years. For 2029 and later loss years the NOL would carry back two years and carry forward 20 years. Only firms that meet the bill's defined "specified financial institution" tests could use these rules. Firms would have to elect the rule on their return by the return due date, and that election would be irrevocable for the year.
Sponsors & CoSponsors
Sponsor
Carey, Mike [R-OH-15]
OH • R
Cosponsors
Rep. Moore, Gwen [D-WI-4]
WI • D
Sponsored 6/22/2026
Rep. Tenney, Claudia [R-NY-24]
NY • R
Sponsored 6/22/2026
Rep. Sewell, Terri A. [D-AL-7]
AL • D
Sponsored 6/22/2026
Rep. Moran, Nathaniel [R-TX-1]
TX • R
Sponsored 6/22/2026
Rep. DelBene, Suzan K. [D-WA-1]
WA • D
Sponsored 6/22/2026
Rep. Yakym, Rudy [R-IN-2]
IN • R
Sponsored 6/22/2026
Rep. Beyer, Donald S. [D-VA-8]
VA • D
Sponsored 6/22/2026
Rep. Miller, Max L. [R-OH-7]
OH • R
Sponsored 6/22/2026
Rep. Horsford, Steven [D-NV-4]
NV • D
Sponsored 6/22/2026
Rep. Van Duyne, Beth [R-TX-24]
TX • R
Sponsored 7/22/2026
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 7/22/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov