Two federal enactments in 2009 designed to provide economic stimulus raised conformity issues that increasingly pushed states further apart from the federal corporate income tax system. The American Recovery and Reinvestment Tax Act of 2009 ("ARRA") amended numerous provisions of the Internal Revenue Code ("IRC") including bonus depreciation, asset expending, cancellation of debt income, NOL carry backs, NOL limitations after a change in ownership, and S Corporations built-in gains.
The Workers, Homeownership, and Business Assistance Act of 2009 (WHBAA") provided taxpayers with an election to carry back NOLs for tax year beginning or ending in either 2008 and 2009 for three, four or five years.
Many states decoupled from these provisions, the resulting decoupling complicates matters for companies that operate in multiple states.
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