Congress quietly hands banks a $billions tax break disguised as small-business bill
H.R. 9383 — Small Business and Consumer Credit Act of 2026 · Filed by Mike Carey (R-OH) · 11 cosponsors · Introduced Jun 22, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill allows certain financial institutions—primarily banks and bank holding companies—to carry forward net operating losses (NOLs) for up to 20 years, and in some cases carry them backward to prior years, to offset future or past taxable income. The bill creates a special tax election available only to these financial institutions for losses incurred between 2027 and 2029 and beyond, effectively allowing them to reduce their federal tax liability by spreading losses across decades.
Why we flagged it
The bill's functional purpose is to provide a selective tax benefit to banks and bank holding companies through extended net operating loss carryover and carryback provisions. Despite the title invoking 'Small Business and Consumer Credit,' the actual mechanism targets only large financial institutions, not small businesses or consumers.
What the text implies
- The bill's title ('Small Business and Consumer Credit Act') does not reflect its actual mechanism—it is purely a tax subsidy for financial institutions with no stated connection to small business lending or consumer credit expansion.
- The selective eligibility (banks not in certain affiliated groups, plus specific bank holding companies) creates a narrow carve-out that may benefit some large regional and community banks while excluding others, suggesting potential lobbying by specific institutions.
The full analysis lists 4 implications of this text.
Who stands to gain
banks (regional and community banks not in certain holding company structures); bank holding companies; insurance companies with banking operations