Bill > HSB229

Introduced Session

Currently, section 461(l) of the Internal Revenue Code (IRC), limits excess business loss deductions for purposes of federal individual income tax calculations, but allows the taxpayer to carry forward any business loss amount disallowed due to the limitations in section 461(l) of the IRC. For the 2024 tax year, any business loss exceeding $305,000 for a single filer and $610,000 for married filers is disallowed but the excess over the threshold amounts may be carried forward. Federal net operating loss deductions carried over from a taxable year beginning prior to January 1, 2023, are disallowed for state individual income tax purposes. This bill specifies that for tax years beginning on or after January 1, 2021, but before January 1, 2023, a taxpayer may deduct any business loss disallowed during the applicable tax year due to the limitations in section 461(l) of the IRC. The bill applies retroactively to tax years beginning on or after January 1, 2021, but before January 1, 2023.

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No sponsors listed

Other Sponsors (1)

Subcommittee recommends passage. (on 03/06/2025)

Official Document