15-30-117. Net operating loss -- computation. (1) A Montana net operating loss must be determined in accordance with section 172 of the Internal Revenue Code of 1954 (26 U.S.C. 172) or as that section may be labeled or amended and in accordance with the following:
     (a) The net operating loss deduction for Montana purposes is increased by the following:
     (i) that portion of the federal income tax and motor vehicle tax allowed as a deduction under 15-30-121 or 15-30-131 that is attributable to income from a Montana trade or business; and
     (ii) Montana wages and salaries allowed as a business deduction under 15-30-111(4).
     (b) The net operating loss deduction for Montana purposes is decreased by the following:
     (i) interest received on obligations of another state or territory or of a county, municipality, district, or political subdivision thereof allowed as nonbusiness income under 15-30-111(1)(a);
     (ii) federal income tax refunds required to be reported under 15-30-111 and 15-30-131 as Montana business income;
     (iii) state income tax; and
     (iv) any other nonbusiness deductions allowed under 15-30-121 in excess of nonbusiness income.
     (2) Notwithstanding the provisions of section 172 of the Internal Revenue Code of 1954 (26 U.S.C. 172) or as that section may be labeled or amended, a net operating loss does not include:
     (a) income defined as exempt from state taxation under 15-30-111(2); or
     (b) a zero bracket deduction provided for under section 63 of the Internal Revenue Code of 1954 (26 U.S.C. 63) or as that section may be labeled or amended.

     History: En. Sec. 1, Ch. 142, L. 1985; amd. Sec. 15, Ch. 83, L. 1989; amd. Sec. 1, Ch. 20, L. 1991; amd. Sec. 2, Ch. 807, L. 1991; amd. Sec. 6, Ch. 634, L. 1993; amd. Sec. 67, Ch. 42, L. 1997.