Bloomberg Law
May 8, 2020, 4:01 PMUpdated: May 8, 2020, 7:43 PM

Small Banks Using Tax Perk to Brace Reserves for Economic Fallout (1)

David Hood
David Hood

A handful of small banks are using a new tax benefit to prop up reserves against future losses beset by the coronavirus pandemic that has roiled the U.S. economy.

The third coronavirus relief law (Public Law 116-136), commonly known as the CARES Act, allowed companies to use net operating losses (NOLs) to retroactively offset taxes for five years, resulting in a one-time tax benefit. The change was enacted on March 27, just in time for some banks to immediately use the tax perk before the first quarter ended on March 31.

At least 11 banks ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.