Sections 2 and 3 of the bill:
- Repeal the add back to federal taxable income related to section 2303 of the March 2020 "Coronavirus Aid, Relief, and Economic Security Act" (CARES Act);
- Repeal the add back to federal taxable income tax related to section 2304 of the CARES Act;
- Repeal the add back to federal taxable income related to section 2306 of the CARES Act; and
- Delay an add back to federal taxable income in an amount equal to the deduction for qualified business income for an individual taxpayer who files a single return and whose adjusted gross income is greater than $500,000, and for an individual taxpayer who files a joint return and whose adjusted gross income is greater than $1 million. The delay keeps the provision that the add back is not required for a taxpayer who files a schedule F, profit or loss from farming, or successor form as an attachment to a federal income tax return.
Section 4 repeals the section that specifies that for net operating losses incurred after December 31, 2017, the 80% limitation set forth in federal law applies without regard to the amendments made in section 2303 of the CARES Act.
Section 5 delays the increase to the earned income tax credit to tax years beginning in 2025. Section 5 also repeals the earned income tax credit that will be available on or after January 1, 2021, to taxpayers filing with an individual taxpayer identification number.
(Note: This summary applies to this bill as introduced.)