Most states allow net operating loss (NOL) deductions, but the specific rules vary significantly from state to state. As a consequence, there is often a difference between the amount of the federal and state NOL deductions. This course explains why differences arise between federal and state NOL deductions. It also discusses the various ways in which states calculate and treat these deductions. Upon completing this course, you should be able to: • List reasons for differences in state and federal NOL deductions • Describe the impact of state apportionment on NOL deductions • Identify the limitations that states place on NOL deductions • Explain how NOLs are treated in mergers and acquisitions • Describe how NOLs are treated in consolidated returns and combined reports