SECTION 1.  Section 1 of chapter 63 of the General Laws, as appearing in the 2012 Official Edition, is hereby amended by striking out, in line one, the words "sections one to two A" and inserting in  place thereof the following words:- sections one to  two B

SECTION 2.  Said section 1 of chapter 63 of the General Laws, as so appearing, is hereby further amended by striking out clause (b) of the definition of “Net income,” and inserting in place thereof the following clause:-

(b) losses sustained in other taxable years, except for net operating losses sustained in any taxable year beginning on or after January 1, 2015; provided, further, that no net operating loss carry-forward of a financial institution shall be allowed as a deduction for any taxable year beginning before January 1, 2017.  Losses sustained in any taxable year beginning on or after January 1, 2015 may be carried forward for not more than 20 years and may not be carried back.  For purposes of this section, the net operating loss sustained in a taxable year shall mean the amount by which the deductions allowable in calculating net income for the taxable year, as defined in this section, including the deduction for dividends received allowable by this section, but not including the deduction for net operating losses allowable under this clause, exceed gross income for the taxable year, as defined in this section.

SECTION 3.  Clause (a) of paragraph (5) of section 30 of chapter 63 of the General Laws, as so appearing, is hereby amended by striking out, in line one, the word "chapter,"  and inserting in place thereof the word "section,"

SECTION 4.  Section 1 shall take effect for tax years beginning on or after January 1, 2014.

SECTION 5. Sections 2 to 3 shall be effective for tax years beginning on or after January 1, 2015.  Notwithstanding any general or special law to the contrary, the carry forward period for losses sustained in any taxable year beginning on or after January 1, 2015 but before the taxable year beginning on January 1, 2016 shall begin with the first taxable year beginning on or after January 1, 2017.  In addition, the carry forward period for losses sustained in short-period taxable years beginning on or after January 1, 2016 but before the taxable year beginning on January 1, 2017 shall begin with the first taxable year beginning on or after January 1, 2017.