From a Credit Suisse First Boston report

From a Credit Suisse First Boston report

By David Zion, Amit Varshney, and Christopher Cornett

Spinning Losses into Gold

November 12, 2009

Last Friday President Obama signed into law the Worker, Homeownership and Business Assistance Act of 2009, which among other things contains an amendment that would temporarily extend the carryback period for net operating losses (NOL) from two years to five years for losses incurred in taxable years beginning or ending in either 2008 or 2009. The extended carryback period could allow companies to get a refund of past taxes paid instead of having to carry the NOL’s forward. Those tax refunds will provide companies with a source of cash, a boost to near term liquidity and a present value positive (a dollar today is usually worth more than a dollar tomorrow).