Schedule NOL: For Calculating the Net Operating Loss (NOL) Recapture Subtraction Modification (2024)
Maine · Maine Revenue Services · Used for tax years 2024
Maine Schedule NOL calculates the net operating loss (NOL) recapture subtraction modification available for 2024. It lists federal losses, carrybacks or carryovers disallowed for Maine purposes, amounts previously recaptured, and the remaining recapture available to report on For
Who files this form
Use Schedule NOL to calculate the net operating loss (NOL) recapture subtraction modification available to claim on your 2024 Form 1120ME.
This subtraction modification arises when an entity’s federal NOL carryback or carryover was disallowed for Maine income tax purposes, requiring an addition modification on the Maine return. That addition can generally be recaptured through a subtraction modification in the year or years after the loss.
Attach Schedule NOL to your 2024 Form 1120ME.
What you'll need
Have the information needed to complete each loss-year entry:
- The originating tax year and amount of the federal NOL.
- The portion carried back or carried forward for federal purposes but disallowed for Maine purposes.
- Amounts already recaptured on Form 1120ME, Schedule 1S, line 6 in prior years.
- Any Maine addition modification offset by the federal loss on the Maine corporate income tax return in the loss year.
If the loss was carried back for federal purposes, attach a copy of federal Form 1139 or Form 1120X reflecting the carryback.
How to file
- Enter each federal NOL’s originating tax year in column 1, earliest year first.
- Enter the federal loss amount in column 2.
- In column 3, enter the portion carried back or forward for federal purposes but disallowed for Maine purposes.
- In column 4, enter amounts previously recaptured. Include any Maine addition modification offset by the federal loss on the Maine return in the loss year.
- Subtract column 4 from column 3 and enter the result in column 5.
- Total column 5 and enter that amount on your 2024 Form 1120ME, Schedule 1S, line 6.
Attach Schedule NOL to your 2024 Form 1120ME. The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Do not claim a deduction that reduces Maine taxable income below zero.
- Do not claim an amount already used as a subtraction modification.
- Do not omit the federal Form 1139 or Form 1120X copy when the loss was carried back for federal purposes.
- Remember to attach Schedule NOL to your 2024 Form 1120ME.
- Do not assume prior-year line numbers are the same. Unless otherwise stated, the schedule’s line references are to 2024 forms.
Questions people ask
What is NOL recapture?
When Maine disallows a federal NOL carryback or carryover, an addition modification is required on the Maine return. That addition can generally be recovered through a subtraction modification in the year or years after the loss.
What if I have losses from more than one year?
List the originating tax years in column 1, starting with the earliest year.
How do I calculate the amount available for 2024?
For each loss year, subtract column 4, Previously Recaptured, from column 3, Disallowed Carryback/Carryforward. Enter the result in column 5. The total of column 5 is the maximum recapture amount available for 2024. Enter it on Form 1120ME, Schedule 1S, line 6. The deduction cannot reduce Maine taxable income below zero.
Where can I find more information and examples?
The schedule directs you to maine.gov/revenue/income-estate-tax. Select “Guidance Documents” for more information and examples about NOL modifications.