AN ACT REVISING THE MONTANA DEDUCTION ALLOWED FOR A NET OPERATING LOSS FROM A TRADE OR BUSINESS TO INCORPORATE MONTANA ITEMS THAT CHANGE THE AMOUNT OF THE FEDERAL CALCULATION OF NET OPERATING LOSS; AMENDING SECTION 15-30-117, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 15-30-117, MCA, is amended to read:

"15-30-117. Net operating loss -- computation. A Montana net operating loss must be determined in accordance with section 172 of the Internal Revenue Code of 1986 (26 U.S.C. 172) or as that section may be labeled or amended

except that the net operating loss determined under section 172(c) of the Internal Revenue Code (26 U.S.C. 172(c)) means taxable income, as defined in 15-30-101(18), computed with the modifications specified in section 172(d) of the Internal Revenue Code (26 U.S.C. 172(d)) as they relate to items provided for in this chapter."

Section 2. Coordination instruction. If House Bill No. 582 and [this act] are both passed and approved, then [this act] is void.

Section 3. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].

Section 4. Effective date. [This act] is effective on passage and approval.

Section 5. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to tax years beginning after December 31, 1998.

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I hereby certify that the within bill,

HB 0651, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE BILL NO. 651

INTRODUCED BY M. HANSON

AN ACT REVISING THE MONTANA DEDUCTION ALLOWED FOR A NET OPERATING LOSS FROM A TRADE OR BUSINESS TO INCORPORATE MONTANA ITEMS THAT CHANGE THE AMOUNT OF THE FEDERAL CALCULATION OF NET OPERATING LOSS; AMENDING SECTION 15-30-117, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.