Base income—Carryovers.

In computing a taxpayer's Washington base income, the taxpayer must:(1) Add to the taxpayer's federal adjusted gross income, any amounts that have been deducted in computing federal adjusted gross income to the extent the amounts have been carried over from taxable years ending before January 1, 2028;(2)(a) Add to the taxpayer's federal adjusted gross income, any amounts of net operating loss carryover that have been deducted in computing federal adjusted gross income not described in subsection (1) of this section; and(b) Deduct 80 percent of the amount of net operating loss carryover that has been deducted in computing federal adjusted gross income, to the extent that the loss carryover meets all of the following criteria:(i) The loss carryover is from losses apportioned to Washington under RCW 82A.04.410 through 82A.04.460;(ii) The loss carryover is not added to federal adjusted gross income under subsection (1) of this section; and(iii) The loss carryover is from a previous tax year so long as that previous tax year is after January 1, 2028.[ 2026 c 238 s 305.]Notes:Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.