This bill amends the Corporation Net Income Tax Act in West Virginia by aligning the definitions of terms used in the Act with their meanings under federal income tax law. Specifically, it updates the effective dates for amendments to the laws of the United States, changing the reference year from 2022 to 2023 for the start of applicable amendments, and from 2024 to 2025 for the end of those amendments. This ensures that any changes made to federal tax laws after December 31, 2023, but before January 1, 2025, will be considered in determining state taxes, while amendments made on or after January 1, 2025, will not have any effect.

Additionally, the bill clarifies that the term "Internal Revenue Code of 1986" encompasses provisions from the previous Internal Revenue Code of 1954 that were not amended or repealed by the 1986 Tax Reform Act. The amendments made by this bill are retroactive to the extent permitted by federal law, preserving the law in effect for taxable years that began prior to January 1, 2025. Overall, the bill aims to ensure consistency between state and federal tax definitions and regulations.

Statutes affected:
Introduced Version: 11-24-3
Engrossed Version: 11-24-3