CHAPTER 263

FORMERLY

HOUSE BILL NO. 730

AN ACT TO AMEND CHAPTERS 11 AND 19, TITLE 30 OF THE DELAWARE CODE RELATING TO THE DEDUCTION OF NET OPERATING LOSSES OF INDIVIDUALS AND CORPORATIONS IN DETERMINING THEIR INCOME TAXES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (three-fifths of all the members of each House thereof concurring therein):

Section 1. Amend §1903(a), Chapter 19, Title 30 of the Delaware Code by striking the period "." at the end of said subsection and by substituting in lieu thereof a semicolon :" and by adding to said subsection a new paragraph (9) to read as follows:

"(9) Any deduction, to the extent such deduction exceeds $30,000, for a net operating loss carryback as provided for in Internal Revenue Code §172 or successor provisions; provided, however, that the taxpayer may increase deductions in any year, consistent with the operation of §172, to carry forward losses which were carried back in calculating federal taxable income but which were prevented from being carried back under this paragraph."

Section 2. Amend §1903(a)(1), Chapter 19, Title 30 of the Delaware Code by striking the phrase or for any net operating loss sustained prior to January 1, 1958" as it appears in said paragraph.

Section 3. Amend §1106(a), Chapter 11, Title 30 of the Delaware Code by striking the period "." at the end of said subsection and by substituting therefor a semicolon ";" and by adding to said subsection a new paragraph (3) to read as follows:

"(3) Any deduction, to the extent such deduction exceeds $30,000, for a net operating loss carryback as provided for in §172 of the Internal Revenue Code or successor provisions."

Section 4. Amend §1106(b), Chapter 11, Title 30 of the Delaware Code by adding thereto a new paragraph (7) to read as follows:

"(7) Any deduction, consistent with the operation of §172 of the Internal Revenue Code or successor provision, to carry forward losses which were carried back in calculating federal taxable income but which were prevented from being carried back under paragraph (3) of subsection (a) of this Section."

Section 5. This Act shall be effective for carryback of net operating losses sustained in tax years ending after June 30, 1990.

Approved July 2, 1990.