That measure included a tax provision that allows companies to immediately deduct net operating losses and apply them to previous returns for five years from 2018, 2019 and 2020 — instead of only applying those deductions to future years. The benefit is supercharged because deductions taken before the 2017 tax overhaul can be claimed at the 35% corporate tax rate instead of the current 21%.
Companies across the spectrum, including retailers and renewable energy developers are taking advantage of the net operating loss provisions in the March stimulus law to claim multimillion-dollar refunds. But it is a particular benefit to oil companies that raked in record profits in 2018, only to be battered by this spring’s crash in crude prices and demand. Oil industry advocates stress that companies would much rather be scoring profits than claiming losses.
Marathon anticipates net operating losses this year and expects to carry those back, allowing it to also take advantage of the higher, 35% corporate tax rate in the process, Chief Financial Officer Don Templin told analysts and investors Aug. 3 on a conference call.
62,064 in IndiaMost new cases today
-2% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.16 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
4.4% Global GDP Tracker (annualized), June