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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.
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.
(1) A Montana net operating loss must be determined in accordance
with section 172 of the Internal Revenue Code of 1954 1986 (26 U.S.C. 172) or as that section may be labeled or amended
and in accordance with the following: (a) The net operating loss deduction for Montana purposes is increased by the following: (i) that portion of the federal income tax and motor vehicle tax allowed as a deduction under 15-30-121 or 15-30-131
that is attributable to income from a Montana trade or business; and (ii) Montana wages and salaries allowed as a business deduction under 15-30-111(4). (b) The net operating loss deduction for Montana purposes is decreased by the following: (i) interest received on obligations of another state or territory or of a county, municipality, district, or political
subdivision thereof allowed as nonbusiness income under 15-30-111(1)(a); (ii) federal income tax refunds required to be reported under 15-30-111 and 15-30-131 as Montana business income; (iii) state income tax; and (iv) any other nonbusiness deductions allowed under 15-30-121 in excess of nonbusiness income. (2) Notwithstanding the provisions of section 172 of the Internal Revenue Code of 1954 (26 U.S.C. 172) or as that
section may be labeled or amended, a net operating loss does not include: (a) income defined as exempt from state taxation under 15-30-111(2); or (b) a zero bracket deduction provided for under section 63 of the Internal Revenue Code of 1954 (26 U.S.C. 63) 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
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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Latest Version of HB 651 (HB0651.ENR)
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