Illinois Department of Revenue

         2023 Schedule UB/NLD Instructions

General Information
This schedule is for use only in tax years ending on or after December 31, 2023, and before December 31, 2024. 
If you are a corporation, other than an S corporation, an Illinois net loss deduction (NLD) is allowed, up to a maximum of $100,000, for tax 
years ending on or after December 31, 2021, and before December 31, 2024. 
When must I use this schedule?
You must use this schedule to claim an Illinois NLD carryforward on an original or amended combined Illinois income tax return filed by a 
unitary business group for tax years ending on or after December 31, 2023. An Illinois NLD can be used to reduce the base income allocable 
to Illinois only if the loss year return has been filed and to the extent the loss was not used to offset income from any other tax year. 
Do not complete this schedule if you have an Illinois net loss this year before subtracting any Illinois net loss carryovers.
Note: Ensure you have filed returns for all periods in which you were required to file an Illinois return. Unfiled returns may result in disallowed 
losses, processing delays, and further correspondence from the Illinois Department of Revenue (IDOR). 
What is the purpose of this schedule?
The purpose of the Schedule UB/NLD is to calculate 
•  total amount of unitary Illinois net loss available for deduction on a combined return by a unitary business group in a year;
•  the amount deducted on the combined return; and 
•  the amount of any loss allocable to each member of the unitary business group and available to carry over to any separate return filed by 
that member for a later tax year or to the combined return of any unitary business group that member might join in a later year. 
Note: Whenever a member leaves a unitary business group that has unused Illinois net losses, that member and the combined unitary 
business group that member belonged to may need to complete a pro forma Schedule UB/NLD (revision date R-12/05 or later, but 
prior to R-12/11 - the revision date is indicated in the bottom corner of the schedule) for earlier years because earlier versions of the 
Schedule UB/NLD did not allocate unused losses among members of a unitary business group. This determines how much of the unused loss 
may be carried forward by the departed member and how much remains with the combined group.
What are the limitations of Illinois NLD?
When determining the years to which a loss can be carried forward, do not count
•  tax years ending on or after December 31, 2021, and before December 31, 2024, for which the deduction would exceed $100,000 
(NLD limitation). You must count any years in which the deduction you took did not exceed $100,000. 
•  tax years ending on or after December 31, 2012, and before December 31, 2014 for which the deduction would exceed $100,000 
(NLD limitation). You must count any years in which the deduction you took did not exceed $100,000.
•  tax years ending after December 31, 2010, and before December 31, 2012 (NLD suspension). 
What are the carry provisions of Illinois NLD?
For tax years ending on or after December 31, 2021, Illinois net losses cannot be carried back and can only be carried forward for 20 tax 
years.
For tax years ending on or after December 31, 2003, and before December 31, 2021, Illinois net losses cannot be carried back, and can 
only be carried forward for 12 years. However, the carryover period of any net loss that had not expired as of November 16, 2021, shall be 
extended from 12 years to 20 years.
For tax yearsending on or after December 31, 1999,and before December 31, 2003, all Illinois net losses must be carried back two years, 
then forward 20 years, unless an election was made to only carry the loss forward. The election to carry a loss forward only was made by 
checking the appropriate box on the original or amended loss-year return, whichever showed the loss first. Once the election was made to 
forgo the Illinois carryback provision, the election was irrevocable.
Losses incurred in tax years ending before December 31, 1999, can be carried back and carried forward for the periods allowed under 
Internal Revenue Code (IRC) Section 172, for the tax year in which the loss was incurred. In general, losses incurred in tax years ending 
•  after August 5, 1997, and ending before December 31, 1999, must be carried back two years, then forward 20 years.
•  on or before August 5, 1997, must be carried back three years, then forward 15 years.
In addition, the special carryover periods in IRC Section 172, as in effect for a particular tax year, would apply to losses incurred in that year. 
For example, a “specified liability loss” incurred in 1998 may be carried back 10 years under IRC Section 172(b)(1)(c).
Also, no limitations under IRC Section 382 or the separate return limitation year provisions of the federal consolidated return regulations apply 
to any NLD carryover.
What if I have a discharge of indebtedness?
If any of the members of your group had discharge of indebtedness income excluded from their federal gross income for any taxable year 
ending on or after December 31, 2008, and as a result the member was required to reduce a federal net operating loss carryover, then you 
may be required to reduce the Illinois net loss carryovers of that member in calculating your combined net loss deduction. See the discharge 
of indebtedness information in Line 3 instructions. Also, if you incurred a combined Illinois net loss for a taxable year in which one or more of 
your group members had excluded discharge of indebtedness income, you may have been required to reduce the combined Illinois net loss you 
incurred for that year. This reduction is made on the Illinois income tax return you filed for the loss year. See the appropriate return instructions 
for your loss year.
Schedule UB/NLD Instructions (IL-1120) (R-12/23) Printed by the authority of the state of Illinois - electronic only - one copy. Page 1 of 4

What if the membership of my unitary business group has changed since an Illinois net loss was 
incurred?
If a member has joined the group, any unused Illinois net loss incurred by that member before joining the group may be used by the group 
in the year the member joined and in subsequent years, up to the maximum number of years (counting both years prior to joining and years 
subsequent to joining) to which the loss could be carried. Illinois does not follow IRC Section 382 or have any “separate return limitation year” 
rules.
If a member has left your group since the group incurred an Illinois net loss, any loss allocable to that member that was not used before the 
member left may be used only by that member or by any unitary business group that it joined after leaving your group. For tax years ending 
before December 31, 2005, you may need to complete a pro forma Schedule UB, Step 4 (revision date R-12/06 or later), for the loss year 
using a version of Schedule UB/NLD (revision date R-12/05 or later, but prior to R-12/11) for each carryover year to determine how much of 
the loss was used before the member left the group.
If a member has acquired an Illinois net loss of another taxpayer under IRC Section 381 (whether or not the other taxpayer was ever a 
member of your group), that member is entitled to carry forward any unused loss it acquired to the year of the acquisition and to subsequent 
years, up to the maximum number of years to which the loss could be carried. Attach a separate schedule to your return showing the name 
and taxpayer identification number of your member that acquired a loss being claimed on this Schedule UB/NLD, the name and taxpayer 
identification number from whom the loss was acquired, the date of the acquisition, the tax year in which the loss was incurred, and the 
amount of unused loss acquired.
What must I attach?
You must attach copies of any Schedule UB pro formas, as required in these instructions, or audit reports reflecting the loss amounts that you 
are claiming on this schedule. If one of your members has acquired an Illinois net loss incurred by another taxpayer, you must also attach a 
schedule showing the name and taxpayer identification number of your member that acquired a loss being claimed on this Schedule UB/NLD, 
the name and taxpayer identification number of the taxpayer from whom the loss was acquired, the date of the acquisition, the tax year in 
which the loss was incurred, and the amount of unused loss acquired. Failure to do so will result in processing delays.
Should I round?
You must round the dollar amounts on Schedule UB/NLD to whole-dollar amounts. To do this, you should drop any amount less than 50 cents 
and increase any amount of 50 cents or more to the next higher dollar.
What if I need additional assistance or forms?
•  For assistance, forms, or schedules, visit our website at tax.illinois.gov or scan the QR code provided.
•  Call 1 800 732-8866 or 217 782-3336 (TTY at 1 800 544-5304).
•  Write us at P.O. Box 19001, Springfield, Illinois 62794-9001
• Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. (Springfield Office) and 8:30 a.m. to 5:00 p.m. 
  (all other offices), Monday through Friday.

Specific Instructions
If a specific line is not referenced, follow the instructions on the form.
Step 1:  Identify your members
Do not include any taxpayer that was not a member of your combined group at any time during the current tax year, even if it was a 
member of your combined group during a loss year.
Line 1 — In each Column A, B, C, and D, enter the name of each member of your combined group that is carrying a loss into the current tax 
year. 
Line 2 — In each Column A, B, C, and D, enter the FEIN of each member you entered on Line 1 in the appropriate column.
Attach additional copies of this schedule if there are more than four members.
If any of these losses were incurred by another entity that later was acquired by a member of your group, enter the group member’s name 
and FEIN here and attach the schedule described in the General Instructions for “What must I attach?”
Do not include corporations taxed in the current year as S corporations. Each S corporation must claim its losses on a Schedule NLD 
attached to its separate Form IL-1120-ST. However, if your combined group includes a member that was an S corporation in prior years but is 
no longer an S corporation, you may carry unused losses from its S corporation years into this tax year in the same manner as any other 
corporation’s loss.
Do not include partnerships. Each partnership must claim its losses on a Schedule NLD attached to its separate Form IL-1065. 
Step 2: Figure your loss year amounts
Line 3 — Enter the tax year that you incurred an Illinois net loss that is available for carryforward to this year and is the loss that will expire 
first.
Discharge of Indebtedness Income — If any of the members of your group had discharge of indebtedness income excluded from their 
federal gross income for any taxable year ending on or after December 31, 2008, and as a result the member was required to reduce a 
federal net operating loss carryover available to carry into this year, then you may be required to reduce that member’s Illinois net loss 
carryovers available to carry into this year. Use the Discharge of Indebtedness Worksheet on Page 4 of these instructions to calculate the 
amount of reduction. Prepare a separate worksheet for each member of your group with excluded discharge of indebtedness income. For 
more information, see 86 Ill. Adm. Code 100.2310(c).
Line 4 — In Column E, Combined Totals, enter the lesser of either $100,000 or the total amount of combined net income of your combined 
group from Step 4, Line 10, Column D, of the current tax year’s Schedule UB.
Schedule UB/NLD Instructions (IL-1120) (R-12/23)                                                                             Page 2 of 4

If losses for more than four years are carried into this tax year, attach an additional Schedule UB/NLD and enter in Step 2, Column E, Line 4, 
the amount from Step 2, Column E, Line 24, of this Schedule UB/NLD. Repeat this process until all losses are used or until taxable income in 
Column E is reduced to zero.
Line 5 — In Columns A through D, enter the amount of any loss that was incurred by the member in the tax year entered on Line 3, and that 
has not been used in a prior year, and enter the total amount in Column E.
For tax years ending before December 31, 2005, you may need to complete a pro forma Schedule UB (revision date R-12/06 or later) for the 
tax year to determine the loss incurred by each member of a group in that year, and a pro forma Schedule UB/NLD (revision date R-12/05 or 
later, but prior to R-12/11) for each subsequent year, to determine how much of the loss each member has used in those years.
Line 6 — In Column E, subtract Line 5 from Line 4. If negative, enter the amount in parentheses.
Line 7 — If the amount in Column E, Line 6 is zero or positive, enter zero here in Columns A through E.
If the amount in Column E, Line 6 is negative, in each Column A through D, enter the amount from that column on Line 5, divided by the 
amount in Column E, Line 5. Carry to six decimal places. In Column E, enter “one.”
Line 8 — If the amount in Column E, Line 6 is 
•  positive, leave this line blank. If you have more losses to deduct, go to Line 9. 
•  negative, enter in Columns A through D, the amount in Column E of Line 6, multiplied by the percentage in Line 7 of the same column, 
   and enter zero in Column E, Line 10.
   The amount shown in each column is the Illinois net loss of the member that is available to carry to that member’s Illinois income tax return 
   for the next tax year.
•  zero, leave this line blank and enter zero in Column E, Line 10.
Note: If you have more losses to deduct, go to Line 9. If you have no more losses to deduct, go to Step 3.
Lines 9 through 14, 15 through 20, and 21 through 26 — Complete an entire set (Lines 9 through 14, 15 through 20, etc.) for each taxable 
year in which a loss was incurred that has not previously been used. If losses for more than four years are carried into this tax year, attach 
an additional Schedule UB/NLD and enter in Step 2, Column E, Line 4 the amount from Step 2, Column E, Line 24 of this Schedule UB/NLD. 
Repeat this process until all losses are used or until taxable income in Column E is reduced to zero or a negative amount.
Line(s) 9, 15, and 21 —   Enter the tax year in which a member incurred an Illinois net loss that is available for carryforward and that is the 
loss that will expire next. 
Line(s) 10, 16, and 22 — In Column E, enter the total amount of base income of your unitary business group from Column E, Line 6 (12 or 
18, as applicable). If the amount is negative, enter zero.
Line(s) 11, 17, and 23 —   Enter the amounts in Columns A through D of any loss that was incurred by the member of your group in the tax 
year on Line 9 (15 or 21, as applicable) that has not been used, and enter the total amount in Column E.
Line(s) 12, 18, and 24 — Subtract Column E, Line 11 (17 or 23, as applicable) from Line 10 (16 or 22, as applicable). If the result is negative, 
enter the amount in parentheses.
Line(s) 13, 19, and 25 — If the amount in Column E, Line 12 (18 or 24, as applicable) is zero or positive, enter zero. If that amount is 
negative, divide the amount in Columns A through D, Line 11 (17 or 23, as applicable) by the amount in Column E, Line 11 (17 or 23, as 
applicable), and enter the results in Column A through D. Round the result to six decimal places. 
Line(s) 14, 20, and 26 — If the amount in Column E of Line 12 (18 or 24, as applicable) is 
 • positive, leave this line blank and go to Line 15 (21 or to a new Schedule UB/NLD, as applicable). 
   If you are completing the last set of lines (Lines 21 through 26), and the amount in Column E, Line 24 is positive, and you have losses that 
   have not been used, enter the amount from Column E, Line 24 on Column E, Line 4 of an additional Schedule UB/NLD, enter the year of 
   the next loss that will expire on Line 3, and continue on that Schedule UB/NLD.
 • negative, enter in Columns A through D, the amount in Column E of Line 12 (18 or 24, as applicable) multiplied by the percentage in 
   Line 13 (19 or 25, as applicable) of the same column, and enter zero on Line 16 (22 or Line 4 of a new Schedule UB/NLD).
   The amount shown in each column is the Illinois net loss of the member that is available to carry to that member’s Illinois income tax return 
   for the next tax year.
 •  zero, enter zero on Line 16 (22 or Line 4 of a new Schedule UB/NLD, as applicable).
If you have no more losses to deduct, go to Step 3. 
Step 3:  Figure your total deduction and taxable income
Line 27 — Enter the amount from Form IL-1120, Step 5, Line 37. 
Line 28 — Add the amounts from Step 2, Column E, Lines 5, 11, 17, and 23 and enter the total here. If you used more than one 
Schedule UB/NLD, add the amounts from each page, enter the total on Line 28 of the first Schedule UB/NLD, and complete Lines 29, 30, and 
31 on the first Schedule UB/NLD only.
Line 29 — If there is a negative amount in Column E, Lines 6, 12, 18, or 24 of any Schedule UB/NLD you completed for this return, enter the 
total of those amounts as a positive number here. Otherwise, enter zero.
Line 30 — Subtract Line 29 from Line 28, and enter the result here, and on your Form IL-1120, Step 5, Line 38. This amount may not exceed 
$100,000.
Line 31 — Subtract Line 30 from Line 27, and enter the result here, and on your Form IL-1120, Step 5, Line 39. The amount on this line 
cannot be negative.

Schedule UB/NLD Instructions (IL-1120) (R-12/23)                                                                                      Page 3 of 4

                                                 Discharge of Indebtedness Worksheet
 Complete a separate worksheet for this year and for each prior year ending on or after December 31, 2008, for each member of your  
 combined group that was required to reduce its federal net operating loss carryovers because of the discharge of indebtedness income 
 exclusion and for which you did not previously complete a Schedule UB/NLD reducing that member’s combined Illinois net loss carryovers.
 1 Enter the amount of the reduction to that member’s federal net operating losses                                                        
  that were carried over to the tax year of the discharge. See federal Form 982.    1 _________________ 
 2 Multiply the amount on Line 1 by your income allocation ratio.                   2 _________________ 
 3 Enter the total amount of Illinois net loss carryovers of that member from                                                             
  all loss years available to be carried to the taxable year of the discharge.      3 _________________ 
 4 Enter the lesser of Line 2 or Line 3. This is the amount of that member’s 
  Illinois net loss carryover reduction.                                            4  _________________
                         Discharge of Indebtedness Worksheet Instructions
Line 1 — Add the total amount of reductions to the member’s federal net operating loss carryovers to the tax year of the debt cancellation. If 
the member had discharge of indebtedness income exclusion for which federal net operating carryovers were reduced in more than one tax 
year, enter the amount of the reduction for the earliest debt cancellation year for which no Schedule UB/NLD reducing the member’s Illinois 
net loss carryover has been filed. If the member was included on a federal consolidated income tax return for federal income tax purposes, 
the amount of the reduction to the federal net operating loss carryovers of that member is the amount of the net operating loss carryovers 
attributable to that member that are reduced under IRC Section 108(b), and Treasury Regulations Section 1.1502-28.
Line 2 — The income allocation ratio is the amount of debt cancellation income excluded from the member’s gross income that would have 
been allocated or apportioned to Illinois under the Illinois Income Tax Act (IITA) if it had not been excluded from gross income, divided by 
the total amount of debt cancellation income excluded from gross income. If all of the member’s debt cancellation income would have been 
business income, use the apportionment factor for the tax year of the debt cancellation for the member as reported on Schedule UB, Step 4, 
Line 4, Column A, B or C.
Line 3 — Include the amount of all Illinois net loss carryovers of the member for a taxable year prior to the year of discharge that had not 
previously been carried back or forward and deducted. In determining this amount, if the combined group had positive base income allocable 
to Illinois in the tax year of the debt cancellation, you may first use any net operating loss carryovers of the member available to be carried to 
that year as part of the group’s Illinois NLD. Only the remaining unused loss carryovers to such year, if any, should be included on this line. If 
the member has no remaining unused loss carryovers, stop here.
Line 4 —  Enter the lesser of Line 2 or Line 3. If the group had positive base income allocable to Illinois for the tax year of the debt 
cancellation, complete the Schedule UB/NLD for the tax year according to the instructions. Then, for each member for which you completed 
this worksheet, complete a separate Schedule UB/NLD by entering on Line 3, Column A, the tax year of that member’s unused loss that will 
expire first and enter “IITA 207(c)” on Line 3, Column E. Enter the total amount from Line 4 of all completed worksheets on Schedule UB/NLD, 
Line 4, and complete Column A of Lines 5 through 8, using that member’s information according to the instructions as if the amount on Line 
4 were the Illinois net income before NLD for this year.  If the amount on the Schedule UB/NLD, Line 4, exceeds the amount on Line 5, 
Column E, enter that excess on Line 6, Column E, and continue until all carried net loss carryovers available to carry into this tax year have 
been eliminated or until the total of the worksheet Line 4 amounts for that member has been used to reduce that member’s Illinois net loss 
carryovers carried into this tax year. If your group does not have positive base income for the tax year of the debt cancellation, then complete 
a separate Schedule UB/NLD for the member according to these instructions to apply the required reduction to the member’s Illinois net loss 
carryovers.

Schedule UB/NLD Instructions (IL-1120) (R-12/23)                                                                                         Page 4 of 4