Director of Revenue v. Verisign, Inc.

Summary

The Court held that the Division of Revenue’s longstanding policy limiting a Delaware corporation’s net operating loss deduction to the consolidated deduction claimed by its federal filing group exceeded the Division’s statutory authority. Before the 2021 amendment, Delaware law required each corporation to calculate taxable income on a standalone basis, including its own allowable net operating losses. The Court therefore invalidated the policy and struck the assessment without reaching the constitutional challenges.