Are NOL carrybacks allowed in 2025? That’s the question business owners keep asking—especially those who just landed government contracts and need a fast, cash-flow-friendly way to fund operations. If that’s you, keep reading. Because what I’m about to share could unlock cash you didn’t even know you were owed.
Let me be real. I’ve worked with business owners for over a decade—contractors, manufacturers, logistics firms—and here’s what I’ve seen: the biggest funding source most of them miss isn’t a loan or a credit line.
It’s the IRS. Yes, seriously.
First—What Is an NOL Carryback?
Let’s break this down in plain English.
A Net Operating Loss (NOL) happens when your business expenses exceed your income in a given year. Now normally, you’d “carry forward” that loss and apply it to future profits to reduce your tax bill.
But a carryback? That’s next-level.
With an NOL carryback, you can apply that loss to past profitable years—go back up to two years, in most cases—and get a refund from taxes you already paid.
Think about that: your business took a loss last year, but now you get a check from the IRS for taxes paid when you were profitable. That’s real money hitting your bank account. Not a loan. Not a line of credit. A check.
Are NOL Carrybacks Allowed in 2025?
Yes—and no. And this is where it gets tricky.
The rules around NOL carrybacks have changed a lot in the last few years. During COVID, the CARES Act temporarily expanded carryback rules to help businesses recover. But those provisions expired.
So, are NOL carrybacks allowed in 2025? As of now:
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Corporations (C-Corps) may still carry back certain losses, depending on when they occurred.
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Most pass-throughs (LLCs, S-Corps) cannot carry back current NOLs under the default rules, but special cases apply.
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Farming businesses and certain insurance companies may still qualify.
And here’s the kicker: if you incurred a loss in 2023 or 2024, you may still be able to file an amended return in 2025 to claim a carryback and get your refund.
So, yes—NOL carrybacks can still be allowed in 2025, if you act quickly and meet the criteria.
Why This Matters for Government Contractors
If you’ve recently won a government contract, you already know cash flow is everything.
You’ve got to:
Hire
Buy inventory
Pay suppliers
Cover payroll before the government pays you
That creates a funding gap. Most contractors go straight for financing—SBA loans, lines of credit, merchant cash advances. But those come with interest, fees, and risk.
An NOL carryback? That’s a debt-free solution.
Let me tell you about one of our clients at Icarus Fund—a minority-owned construction firm out of Texas. They took a $300K loss in 2022 due to inflation and project delays. In 2020 and 2021, they were profitable and paid a total of $95K in taxes.
We carried back that $300K loss and triggered a refund of $88,000. That money was in their account within weeks. No debt. No stress. And they used it to gear up for a $750K federal housing contract.
Why Most Businesses Miss This
Let’s be honest—most business owners aren’t CPAs. And even some tax professionals don’t dig deep enough to surface opportunities like this.
But here’s what we know at Icarus Fund:
Most businesses who took losses between 2020 and 2024 don’t realize they can still claim refunds in 2025.
Many don’t know how to amend old returns or calculate qualifying NOLs.
And worst of all—they think it’s too late.
Let me be clear: It’s not too late.
But it will be if you wait too long. Refund windows close. Deadlines pass. The IRS doesn’t give out second chances.
How to Know If You Qualify
You don’t need to become a tax expert—but you should understand the basics. Here’s a quick checklist:
✅ Did your business take a loss in 2023 or 2024?
✅ Were you profitable in the two years before that loss year?
✅ Are you structured as a C-Corp, or have special provisions under your entity type?
✅ Have you paid taxes in those prior years?
If you checked yes to any of these—and you’re asking “are NOL carrybacks allowed in 2025?”—then you need to talk to us at Icarus Fund.
We Handle the Heavy Lifting
At Icarus Fund, we specialize in turning paper losses into hard cash. That means:
We review your prior filings
We identify carryback opportunities
We prepare and file amended returns
We manage IRS communications
And we help you get your refund fast
You focus on delivering your contract. We focus on unlocking the cash you’re owed.
Don’t Let the IRS Keep Your Money
If your business paid taxes in profitable years and took a loss recently, you could be sitting on thousands—sometimes hundreds of thousands—in refundable tax credits.
I’ve seen it happen again and again. Business owners wait too long, assume they don’t qualify, or let a “generalist” CPA wave it off. Meanwhile, that refund could’ve funded payroll, new hires, materials—without adding a dime of debt.
Act Now Before the Window Closes
The rules on NOLs aren’t static. Congress changes them. The IRS sets deadlines. And if you’re not paying attention, the opportunity passes you by.
So let’s answer the question once more: Are NOL carrybacks allowed in 2025?
✅ Yes—for qualifying businesses with prior losses and taxable profits in earlier years
⏳ But only if you act fast and file correctly
💼 And with Icarus Fund, you don’t have to figure it out alone
🚀 Call to Action
If your business took a loss and you’ve won a government contract, this is your moment.
Let Icarus Fund help you turn your tax loss into real, usable cash.
👉 Contact us today to find out if you qualify for an NOL carryback refund in 2025.
The IRS owes you money. We’ll help you go get it—fast.
