NC SB 726, IRC Update, won final House passage on Wednesday, May 3, 2016, by a vote of 76-35, and will go to the Senate as amended, likely today when they convene at 11:00 am.
Before that vote, however, the bill was amended by Rep. Rick Catlin (R-Wilmington), to allow exclusion from taxpayers’ gross income the discharge of qualified principal indebtedness for residential property as reimbursement for the cost to clean up contamination by leaking underground fuel tanks on their property (assuming they have not received payment from the state’s leaking underground tank cleanup fund) or by fuel that migrated from underground tanks on their neighbor’s property. That amendment passed 94-16.
An earlier proposed amendment to exclude from taxpayers’ gross income any short-sale debt write-off up to $50,000 failed by a vote of 50-62.
It is not clear yet if the Senate will agree with the House amendment or not. NCACPA will encourage expeditious action by the Senate, but it could be next week before we know if the Senate will or will not concur with the House version of SB 726 as amended.