Income tax, state; conformity with the Internal Revenue Code. (SB1146)

Introduced By

Sen. Janet Howell (D-Reston) with support from co-patron Sen. Chap Petersen (D-Fairfax)

Description

Conformity of the Commonwealth's taxation system with the Internal Revenue Code. Advances Virginia's date of conformity with the Internal Revenue Code from December 31, 2019, to December 31, 2020. The bill deconforms from the suspension of the overall limitation on itemized deductions and the reduction in the medical expense deduction floor for taxable year 2017 and taxable years on and after January 1, 2019, and from the provisions of the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) related to the net operating loss limitation and carryback, a loss limitation applicable to taxpayers other than corporations, the limitation on business interest, and certain loan forgiveness and other business financial assistance. The bill provides an individual and corporate income tax deduction or subtraction, as applicable, of up to $100,000 for Rebuild Virginia grants and certain amounts related to Paycheck Protection Program loans. The bill contains an emergency clause and is identical to HB 1935. Read the Bill »

Status

08/05/2021: Awaiting a Vote in the Finance and Appropriations Committee

History