KRS 141.011 — Casualty losses -- Net operating losses

(1) Notwithstanding any other provision of this chapter, the net operating loss
carryback-carryforward deduction, including casualty loss, allowed under Section
172 of the Internal Revenue Code shall apply only to such losses incurred in taxable
years beginning after December 31, 1979, and no such loss shall be carried back to
taxable years beginning before January 1, 1980. Any casualty loss carryforward
authorized by this section as it existed before January 1, 1980, may be carried
forward as an itemized deduction until it has been fully deducted.
(2) The net operating loss carryback deduction shall not be allowed for losses incurred
for taxable years beginning on or after January 1, 2005.
(3) For taxable years when the tax due under KRS 141.040 is based on the alternative
minimum calculation provided in KRS 141.040, any net operating loss carryforward
deduction that is utilized for the taxable year shall be the amount of taxable net
income before the net operating loss deduction, that exceeds the taxable net in come
equivalent. For purposes of this subsection, "taxable net income equivalent" means
the amount of taxable net income that would generate an income tax equal to the
alternative minimum calculation liability computed under KRS 141.040.
(4) For taxable ye ars beginning on or after January 1, 2005, and before December 31,
2006, the net operating loss carryforward deduction of a corporation shall be
reduced by the amount of distributive share income, loss, and deduction distributed
to an individual or general partnership as defined in KRS 141.206.
(5) For taxable years beginning on or after January 1, 2005, but prior to January 1,
2019, the portion of a net operating loss that is not used to offset the income of an
affiliate according to the limits in KRS 141. 200(11) shall be available for
carryforward, subject to the limitations contained in this section.