Final answer:
C corporations can no longer carry back net operating losses but can carry them forward indefinitely to offset future taxable income, following changes made by the Tax Cuts and Jobs Act of 2017.
Step-by-step explanation:
When it comes to a C corporation's handling of net operating losses (NOL), there are specific rules for carrying back and carrying forward these losses to offset taxable income. Historically, these rules have been subject to changes and updates by legislative actions. However, under current law, enacted by the Tax Cuts and Jobs Act (TCJA) of 2017, the carryback provision for most NOLs has been eliminated for taxable years beginning after December 31, 2017. Instead, NOLs can now be carried forward indefinitely. This change allows losses to be applied to future taxable income without the restriction of a set number of years. It is important to stay updated with the latest tax regulations as they can have significant implications for corporations.