WEST virginia legislature
2020 regular session
Senate Bill 300
By Senators Carmichael (Mr.
President) and Prezioso
(By Request of the Executive)
[Introduced January 10,
to the Committee on Finance]
A BILL to amend and reenact §11-24-3 of the Code of West Virginia, 1931, as amended, relating to updating the meaning of federal taxable income and certain other terms used in the West Virginia Corporation Net Income Tax Act; and specifying effective dates.
Be it enacted by the Legislature of West Virginia:
Article 24. CORPORATION NET INCOME TAX.
§11-24-3. Meaning of terms; general rule.
(a) Any term used in this
article has the same meaning as when used in a comparable context in the laws
of the United States relating to federal income taxes, unless a different
meaning is clearly required by the context or by definition in this article.
Any reference in this article to the laws of the United States means the
provisions of the Internal Revenue Code of 1986, as amended, and any other
provisions of the laws of the United States that relate to the determination of
income for federal income tax purposes. All amendments made to the laws of the
United States after December 31,
2017 2018, but prior to January
1, 2019 2020, shall be given effect in determining the taxes
imposed by this article to the same extent those changes are allowed for
federal income tax purposes, whether the changes are retroactive or
prospective, but no amendment to the laws of the United States made on or after
January 1, 2019 2020, shall be given any effect.
(b) The term “Internal Revenue Code of 1986” means the Internal Revenue Code of the United States enacted by the federal Tax Reform Act of 1986 and includes the provisions of law formerly known as the Internal Revenue Code of 1954, as amended, and in effect when the federal Tax Reform Act of 1986 was enacted that were not amended or repealed by the federal Tax Reform Act of 1986. Except when inappropriate, any reference in any law, executive order, or other document:
(1) To the Internal Revenue Code of 1954 includes a reference to the Internal Revenue Code of 1986; and
(2) To the Internal Revenue Code of 1986 includes a reference to the provisions of law formerly known as the Internal Revenue Code of 1954.
(c) Effective date. —
The amendments to this section enacted in the year
2019 2020 are
retroactive to the extent allowable under federal income tax law. With respect
to taxable years that began prior to January 1, 2019 2020, the
law in effect for each of those years shall be fully preserved as to that year,
except as provided in this section.
NOTE: The purpose of this bill is to update the meaning of “federal taxable income” and certain other terms used in the West Virginia Corporation Net Income Tax Act by bringing them into conformity with their meaning for Internal Revenue Code’s definitions, and to specify effective dates.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.