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clawmann

12/21/11 10:47 AM

#352953 RE: rainbow1111 #352950

You are right. Investopedia should not have described the effect of using an NOL as a "tax credit". An NOL is a deduction and results in a tax saving equal to the applicable marginal rate of taxation times the amount of the NOL being deducted. A tax credit, on the other hand, is a dollar-for-dollar reduction in taxes owed.