The bill amends and reenacts section 11-24-3 of the Code of West Virginia, 1931, to align the definitions of terms used in the corporation net income tax with their meanings under federal income tax law. It specifies that any term in this article will have the same meaning as in the federal laws unless a different meaning is required by context or definition within the article itself. The bill also clarifies that references to the laws of the United States pertain to the Internal Revenue Code of 1986 and any relevant amendments made before January 1, 2026. Notably, amendments to federal laws made after December 31, 2024, but before January 1, 2026, will be considered for tax determinations, while those made on or after January 1, 2026, will not.

Additionally, the bill establishes that the amendments enacted in 2026 are retroactive to the extent permitted by federal income tax law. It preserves the law in effect for taxable years prior to January 1, 2026, ensuring that those years remain unaffected by the new amendments, except as specifically provided in the bill. This legislative change aims to create consistency between state and federal tax definitions, thereby simplifying compliance for corporations operating in West Virginia.

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