The tax treatment of net operating losses ("NOLs") have been in a constant state of flux, it seems.  Severely curtailed in recent years in terms of the ability to carryback NOLs to prior tax years, the ability to utilize NOLs to offset income and generate refunds was liberalized once again during the pandemic under the CARES Act. It's important to understand that 2021 is more of a reversion to the law in effect just before the pandemic hit. 

Most taxpayers no longer have the option to carryback a net operating loss (NOL). For most taxpayers, NOLs arising in tax years ending after 2020 can only be carried forward. The 2-year carryback rule in effect before 2018, generally, does not apply to NOLs arising in tax years ending after December 31, 2017.  As mentioned, the CARES Act provided for a special 5-year carryback for taxable years beginning in 2018, 2019 and 2020. Exceptions apply to certain farming losses and NOLs of insurance companies other than a life insurance company. It's also important to note that for losses arising in taxable years beginning after December 31, 2020, the net operating loss deduction is limited to 80% of the excess (if any) of taxable income determined without regard to the NOL deduction, qualified business income deduction ("QBID" under Section 199A), and foreign-derived intangible income and global intangible low-taxed income (Section 250) deductions over the total NOL deduction from NOLs arising in taxable years beginning before January 1, 2018.