House committee substitute to the 1st edition makes the following changes.

Part I. IRC Update

Amends GS 105-228.90 to defines CARES Act as the Coronavirus Aid, Relief, and Economic Security Act, PL 116-136, Mar. 27, 2020, 134 Stat. 359. 

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 the amount of any expense deducted under the Code to the extent that that payment of the expense results in forgiveness of a covered loan under the specified section of the CARES Act and the income associated with the forgiveness is excluded from gross income under the CARES Act (was, the amount of any forgiveness of indebtedness on a covered loan, as defined in the federal CARES Act, with the intent of decoupling from the loan forgiveness allowed under the federal CARES Act). Makes additional clarifying changes.

Amends GS 105-153.5(c2) to modify the required adjustments to an individual’s gross income, which are decoupled from federal requirements as follows. Adds that for taxable years 2013-2019, a taxpayer must add the amount of any 2018, 2019, or 2020 net operating loss carried back and deducted on a federal return under the specified provision of the CARES Act but not absorbed in that year and carried forward to a subsequent year. Specifies that this addition is not required to the extent an addition is required under GS 105-153.5(c)(6). States the purpose of the adjustment as to decouple from the net operating loss carryback provisions of section 2303 of the CARES Act.  

Further amends GS 105-153.5(c2), adding 12 new decoupling provisions and requiring taxpayers to make the specified additional adjustments to their adjusted gross income as specified 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. Also require a taxpayer to add the amount of any expenses deducted under the Code to the extent that payment of the expense results in forgiveness of a covered loan (as defined) under the specified section of the CARES Acct and the income associated with the forgiveness is excluded from gross income under the specified section of the CARES Act (was, a taxpayer must add the amount of any forgiveness of indebtedness on a covered loan, with the stated purpose of decoupling from the loan forgiveness allowed under the specified section of the CARES Act). Makes additional clarifying changes.

Part II. Excise Tax Changes

Section 2.11

Amends GS 105-449.69A to require that an application for a temporary licenses for importing, exporting, distributing, or transporting motor fuel in the State in response to a disaster declaration be filed prior to the termination of the state of emergency or disaster declaration (was, must be filed when a state of emergency or disaster declaration is in effect).