ID H0381

Defines "net operating loss" as the amount by which Idaho taxable income, after specified modifications, is less than zero.

Requires adding back to taxable income the net operating loss deduction, capital loss deductions (for non-corporate taxpayers), personal exemptions, and standard or itemized deductions when calculating net operating loss.

Allows Idaho net operating losses incurred by a corporation to survive a merger, subject to Internal Revenue Code sections 381 and 382.

Provides that changes in a loss corporation's business location or key employees do not constitute failure to satisfy continuity of business requirements for merger purposes.

Further limits the section 382 Internal Revenue Code loss limitation by the premerger loss corporation's Idaho apportionment factor for multi-state corporations conducting operations in Idaho and at least one other state.

Effective retroactively to January 1, 2010, with an emergency declaration.