This bill, introduced by Delegate Hanshaw and Hornbuckle, aims to amend and update Section 11-24-3 of the Code of West Virginia, 1931, to align the definitions of terms used in the state’s corporation net income tax law with their meanings under federal income tax law. The bill specifies that any term used in this article will have the same meaning as in the federal laws unless a different meaning is required by context or definition. It also clarifies that references to the laws of the United States pertain to the Internal Revenue Code of 1986 and any subsequent amendments, with specific provisions regarding the effective dates of these amendments.

Key changes include the adjustment of effective dates for amendments to the laws of the United States, moving the cutoff for amendments from December 31, 2023, to December 31, 2024, and from January 1, 2025, to January 1, 2026. Additionally, the bill states that the amendments enacted in 2026 will be retroactive to the extent allowed under federal law, preserving the law in effect for taxable years prior to January 1, 2026. This update is intended to ensure that West Virginia's tax code remains consistent with federal tax regulations.

Statutes affected:
Introduced Version: 11-24-3