Revise income tax laws for net operating loss carryovers

One-time net operating loss fix for Montana filers

The law lets Montana filers elect a one-time transition adjustment for net operating loss carryovers from before 2024. The amount equals the total of all pre‑2024 Montana taxable income differences from federal rules. If your Montana NOL on Dec. 31, 2023 was smaller than your federal NOL, the adjustment increases Montana taxable income; if larger, it lowers it. You must elect on your 2024 Montana return, include the Department of Revenue’s carryforward adjustment form, and file by Oct. 15, 2025; you may amend 2024 by that date. The Department cannot extend the deadline; if you miss it, you lose the election. Apply the full amount to 2024 first until your Montana taxable income is $0, then to later years until they are $0, for up to seven years total. Use this transition amount after any new NOLs from 2024 or later, and it does not change how new NOLs after 2023 are figured. It applies to tax years that begin after Dec. 31, 2023, and the Department may set forms and rules for this process.