Amends GS 105-228.90 to update the term Code as it applies to the general administration of taxation to mean the Internal Revenue Code as enacted as of May 1, 2020 (currently, January 1, 2019). Additionally, adds CARES Act to the defined terms, defined as P.L. 116-136, March 26, 2020. Authorizes the Revisor to make technical and conforming changes.

Amends GS 105-130.5 to expand the additions to federal taxable income that must be made in determining State corporate net income to include a taxpayer's interest expense deduction that exceeds the interest expense deduction allowed under the Code as of January 1, 2020, for the 2019 and 2020 taxable year (provides that the provision is meant to decouple from the modification of limitation on business interest allowed under the CARES Act). Further, expands the deductions to federal taxable income that must be made in determining State corporate net income to include the amount of any expense not deducted under the Code to the extent that payment of the expense results in forgiveness of a covered loan under the CARES Act and the associated income is excluded from gross income under the CARES Act.

Amends GS 105-153.5(a)(2)a., concerning charitable contributions, to provide for the term Code to mean the IRC as enacted as of January 1, 2020, for taxable year 2020, as it applies to the subsubdivision. Also, adds that for taxable years beginning on or January 1, 2021, a taxpayer can only carry forward the charitable contributions from taxable year 2020 that exceed the applicable percentage limitation for the 2020 taxable year allowed under the subsubdivision. Provides that the purpose of the new provisions is to decouple from the modification of limitations on charitable contributions during 2020 allowed under the federal CARES Act.

Amends GS 105-153.5(a)(2)b. to modify the allowable itemized deduction an individual may elect to deduct from their gross income for mortgage expense and property tax. Prohibits the amount allowed as a deduction for interest paid or accrued during the taxable year under the Code with respect to any qualified residence from including the amount for mortgage insurance premiums treated as qualified residence interest for taxable years 2014 through 2020 (currently limited to taxable year 2014, 2015, 2016, and 2017).

Similarly, amends GS 105-153.5(c2) to modify the required adjustments to an individual’s gross income, which are decoupled from federal requirements. Requires the taxpayer to add the amounts excluded from the taxpayer’s gross income for the discharge of qualified principal residence indebtedness and qualified tuition and related expenses under the Code for taxable years 2014 through 2020 (currently limited to taxable year 2014, 2015, 2016, and 2017).

Further amends GS 105-153.5(c2), adding 13 new decoupling provisions requiring taxpayers to make the specified additional adjustments to their adjusted gross income as specified for identified taxable years relating to deductible 2018, 2019 and 2020 net operating losses, excess business losses, excess net operating loss carryforward deductions, excess interest expense deductions, employer paid qualified education loans excluded from gross income, deductions of qualified charitable contributions, and forgiveness of covered debt on a covered loan.