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Five states\u2014Alabama, Minnesota, North Carolina, Oregon, and Tennessee\u2014permit losses to be carried forward for up to 15 years. Illinois allows unlimited losses for 12 years; Michigan, Montana, New Hampshire, and Vermont 10 years; Arkansas for eight years; and Rhode Island for five years.
Purpose. Use form FTB 3805Q, Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations \u2014 Corporations, to figure the current year NOL and to limit NOL carryover and disaster loss carryover deductions.
"Eligible small business" means any trade or business that has gross receipts, less returns and allowances, of less than one million dollars ($1,000,000) during the taxable [income] year. (Revenue and Taxation Code §§ 17276(e)(1) & 24416(f)(1).)