Schedule NOL: For Calculating the Net Operating Loss (NOL) Recapture Subtraction Modification (2025)
Maine · Maine Revenue Services · Used for tax years 2025
Maine Schedule NOL calculates the net operating loss (NOL) recapture subtraction modification available for 2025. It lists federal losses, carrybacks or carryovers disallowed for Maine purposes, amounts previously recaptured, and available recapture amounts. The schedule is attac
Who files this form
Schedule NOL is used by entities filing Form 1120ME to calculate the net operating loss (NOL) recapture subtraction modification available for 2025. This modification comes from a federal NOL carryback or carryover that was disallowed for Maine income tax purposes and required a Maine addition modification.
Attach this schedule to your 2025 Form 1120ME.
What you'll need
To complete the schedule, you need:
- The originating tax year and federal NOL amount for each loss.
- The amount carried back or forward for federal purposes but disallowed for Maine purposes.
- Amounts previously recaptured on Form 1120ME, Schedule 1S, line 6.
- Any Maine addition modification offset by the federal loss on the Maine corporate income tax return in the loss year.
If a loss was carried back for federal purposes, attach a copy of federal Form 1139 or Form 1120X reflecting the carryback. You will also need your 2025 Form 1120ME and Schedule 1S to report the result and attach Schedule NOL.
How to file
- In column 1, enter each loss's originating tax year, earliest year first.
- In column 2, enter the federal NOL for that year.
- In column 3, enter the portion carried back or forward federally but disallowed for Maine purposes.
- In column 4, enter amounts previously recaptured. Also 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 the total on 2025 Form 1120ME, Schedule 1S, line 6.
Attach Schedule NOL to your 2025 Form 1120ME. For a federal carryback, also attach federal Form 1139 or Form 1120X reflecting that carryback.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Do not use the deduction to reduce Maine taxable income below zero.
- Do not claim an amount already used as a subtraction modification.
- Do not overlook the requirement to attach Schedule NOL to your 2025 Form 1120ME.
- Check line references carefully. Unless otherwise stated, the instructions refer to 2025 forms, and prior-year line references may differ.
Questions people ask
What does Schedule NOL calculate?
It calculates the NOL subtraction modification available for the current tax year. A Maine addition modification for a disallowed federal NOL carryback or carryover can generally be recaptured through a subtraction modification in a year after the loss.
What does the column 5 total represent?
It is the maximum NOL recapture amount available for 2025. The form directs you to enter it on Form 1120ME, Schedule 1S, line 6. The deduction cannot reduce Maine taxable income below zero.
What if I have losses from several years?
Enter the earliest loss year first in column 1, then enter the corresponding loss and recapture amounts for each year.
Where can I find more information and examples?
The form directs you to maine.gov/revenue/income-estate-tax. Select Guidance Documents for more information and examples about NOL modifications.