§235-2.5  Administration, adoption, andinterrelationship of Internal Revenue Code and Public Laws with this chapter.  (a) Reference in provisions of the Internal Revenue Code which are operative inthis State to provisions in the Internal Revenue Code which are not operativein this State shall be considered inoperative for the purposes of determininggross income, adjusted gross income, ordinary income and loss, and taxableincome; provided that:

(1)  References to time limits and otheradministrative provisions in subtitle F (sections 6001 to 7873) of the InternalRevenue Code contained in operative sections of the Internal Revenue Code shallbe deemed references to applicable provisions of this chapter or chapter 231 or232, and in the absence of applicable provisions in this chapter or chapter 231or 232, then to rules adopted by the director of taxation under subsection (b);

(2)  If inoperative provisions of the Internal RevenueCode have been codified in this chapter such references shall be deemed referencesto the codified provisions in this chapter.  Transitory and savings provisionsin federal Public Laws amending sections of the Internal Revenue Code operativein this chapter shall be operative for the purposes of this chapter. Provisions in this chapter or chapter 231 or 232 in conflict with the InternalRevenue Code or transitory or savings provisions in federal Public Law shallcontrol; and

(3)  Retroactive and prospective provisions in federalPublic Laws amending sections of the federal Internal Revenue Code operative inthis chapter affecting taxable years beginning or ending before the December 31date in section 235-2.3 shall be operative for the purposes of this chapter;provided that the effective dates in Public Law 96-471 placing it in effect forthe taxable year 1980 shall be operative for the purposes of this chapter.

(b)  The director of taxation may adopt by ruleunder chapter 91 the rules and regulations promulgated by the United StatesSecretary of Treasury or a delegate of the Secretary relating to the provisionsof subtitle A, chapter 1 or 6, of the Internal Revenue Code operative in thischapter and any administrative provisions of the Internal Revenue Code(subtitle F, sections 6001 to 7873) not in conflict with or similar to provisionscontained in this chapter or chapter 231 or 232 either by reference or bysetting them forth in full.

(c)  The department of taxation shall submit toeach regular session of the legislature a bill to amend sections 235-2.3,235-2.4, and 235-2.45 and such other sections and subsections of this chapteras may be necessary to adopt the Internal Revenue Code as it exists on theDecember 31 preceding such regular session.  In submitting the bill thedepartment may provide that certain amendments to the Internal Revenue Code byCongress during the preceding calendar year shall not be operative in thisState or as operative are limited in their operation.  The department shallalso prepare a digest and explanation of the amended provisions of the InternalRevenue Code recommended for operation, as well as those provisions which arelimited in their operation, or which are not recommended for operation, andshall submit with the bill required by this subsection the digest, explanation,and a statement of revenue impact of the adoption of such bill.  In preparingthe bill, digest, and explanation the department may request the assistance ofthe office of the legislative reference bureau.

It is the intent of the legislature that itshall each year adopt all amendments to the Internal Revenue Code for thecalendar year preceding the year in which the legislature meets; provided thatthe legislature may choose to adopt none of the amendments to the InternalRevenue Code or may provide that certain amendments are limited in theiroperation. [L 1985, c 19, pt of §1; am L 1988, c 102, §2; am L 1989, c 13, §3;am L 1996, c 187, §3; am L 2001, c 199, §2; am L 2008, c 93, §4]

 

Note

 

  The 2008 amendment applies to taxable years beginning afterDecember 31, 2007; provided that the retroactive and prospective effectivedates contained in the congressional acts relating to the Internal Revenue Codeand enacted during 2007 shall be operative for chapter 235.  L 2008, c 93, §7.