It’s in, it’s out — it’s back again. A proposal to extend the carryback period for net operating losses (NOLs) has resurfaced in President Obama’s budget blueprint after all but vanishing from the stimulus bill.

The proposal, one of the juicier business tax breaks in early versions of the stimulus package, lets companies apply NOLs against income that was taxed in the five years before 2008 instead of the two years allowed by current law, raising the prospect of sizable refunds.

By the time the stimulus bill landed on President Obama’s desk, though, Senate and House negotiators had limited the tax break to small businesses with gross receipts of $15 million or less, as I reported here.

Now the White House has resuscitated the idea, according to a Wall Street Journal report. By including the NOL carryback expansion in the budget proposal, the administration is seeking to “extend the benefits to ‘larger businesses’ than those covered by the tax break in the stimulus plan,” the Journal notes, citing a White House spokesman.

A genuine pro-business move, or an empty gesture to provide the appearance of bipartisanship? We’ll see how hard the administration fights for the proposal. In the meantime, many cash-strapped businesses will be hoping that this time the tax break survives yet another round of Congressional scrutiny. ###