HB614: Income tax laws; conformity to Internal Revenue Code.


HOUSE BILL NO. 614
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the House Committee on Finance
on February 10, 2010)
(Patron Prior to Substitute--Delegate Purkey)
A BILL to amend and reenact ? 58.1-301 of the Code of Virginia, relating to conformity of the Commonwealth's system of taxation with the Internal Revenue Code.

Be it enacted by the General Assembly of Virginia:

1. That ? 58.1-301 of the Code of Virginia is amended and reenacted as follows:

? 58.1-301. Conformity to Internal Revenue Code.

A. Any term used in this chapter shall have the same meaning as when used in a comparable context in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required.

B. Any reference in this chapter to the laws of the United States relating to federal income taxes shall mean the provisions of the Internal Revenue Code of 1954, and amendments thereto, and other provisions of the laws of the United States relating to federal income taxes, as they existed on December 31, 2008 2009, except for:

1. The special depreciation allowance for certain property provided for under ?? 168(k), 168(l), 168(m), 1400L, and 1400N of the Internal Revenue Code; and

2. The carry-back of certain net operating losses for five years under ? 172(b)(1)(H) of the Internal Revenue Code.;

3. The deferral of certain income under ? 108 (i) of the Internal Revenue Code; and

4. The original issue discount on applicable high yield discount obligations under ? 163 (e)(5)(F).

2. That an emergency exists and this act is in force from its passage.

HOUSE BILL NO. 614
Offered January 13, 2010
Prefiled January 12, 2010
A BILL to amend and reenact § 58.1-301 of the Code of Virginia, relating to conformity of the Commonwealth's system of taxation with the Internal Revenue Code.
Patron-- Purkey

Committee Referral Pending

Be it enacted by the General Assembly of Virginia:

1.  That § 58.1-301 of the Code of Virginia is amended and reenacted as follows:

§ 58.1-301. Conformity to Internal Revenue Code.

A. Any term used in this chapter shall have the same meaning as when used in a comparable context in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required.

B. Any reference in this chapter to the laws of the United States relating to federal income taxes shall mean the provisions of the Internal Revenue Code of 1954, and amendments thereto, and other provisions of the laws of the United States relating to federal income taxes, as they existed on December 31, 2008 2009, except for:

1. The special depreciation allowance for certain property provided for under §§ 168(k), 168(l), 168(m), 1400L, and 1400N of the Internal Revenue Code; and

2. The carry-back of certain net operating losses for five years under § 172(b)(1)(H) of the Internal Revenue Code.;

3. The deferral of certain income under § 108 (i) of the Internal Revenue Code;

4. The original issue discount on applicable high yield discount obligations under § 163 (e)(5)(F); and

5. For taxable years beginning on and after January 1, 2010, the amount of the deduction allowed for domestic production activities pursuant to § 199 of the Internal Revenue Code.

2.  That an emergency exists and this act is in force from its passage.