|Introduced in House||Passed House||Introduced in Senate||Passed Senate||Became Law|
Commonwealth's tax system; conformity with the Internal Revenue Code.
Advances the date by which Virginia conforms to the Internal Revenue Code from December 31, 2018, to December 31, 2019. The bill includes an emergency clause and shall apply to taxable years beginning on and after January 1, 2018.
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
2018 2019, 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;
2. The carry-back of certain net operating losses for five years under � 172(b)(1)(H) of the Internal Revenue Code;
3. The original issue discount on applicable high yield discount obligations under � 163(e)(5)(F) of the Internal Revenue Code;
4. The deferral of certain income under � 108(i) of the
Internal Revenue Code. For Virginia income tax purposes, income from the
discharge of indebtedness in connection with the reacquisition of an
"applicable debt instrument" (as defined under � 108(i) of the
Internal Revenue Code) reacquired in the taxable year shall be fully included
in the taxpayers Virginia taxable income for the taxable year, unless the
taxpayer elects to include such income in the taxpayers Virginia taxable
income ratably over a three-taxable-year period beginning with taxable year
2009 for transactions completed in taxable year 2009, or over a
three-taxable-year period beginning with taxable year 2010 for transactions
completed in taxable year 2010 on or before April 21, 2010. For purposes of
such election, all other provisions of � 108(i) of the Internal Revenue Code
shall apply mutatis mutandis. No other deferral shall be allowed for income
from the discharge of indebtedness in connection with the reacquisition of an
"applicable debt instrument"; [
5. For taxable years beginning on and after January 1, 2019, the provisions of � 11046 of the federal Tax Cuts and Jobs Act, P.L. 115-97 (2017), related to the suspension of the overall limitation on itemized deductions [ ; and
6. The provisions of � 103 of Division Q of the federal Further Consolidated Appropriations Act, 2020, P.L. 116-94 (2019), related to the reduction in the medical expense deduction floor ] .
The Department of Taxation is hereby authorized to develop procedures or guidelines for implementation of the provisions of this section, which procedures or guidelines shall be exempt from the provisions of the Administrative Process Act (� 2.2-4000 et seq.).
2. That an emergency exists and this act is in force from its passage.
3. That the provisions of this act shall apply to taxable years beginning on and after January 1, 2018.
|01/29/2020||House||House: Reported from Finance (21-Y 0-N)|
|01/28/2020||House||House: Referred to Committee on Finance|
|01/24/2020||Senate||Senate: Read third time and passed Senate (38-Y 1-N)|
|01/23/2020||Senate||Senate: Printed as engrossed 20102785D-E|
|01/22/2020||Senate||Senate: Constitutional reading dispensed (40-Y 0-N)|
|01/21/2020||Senate||Senate: Reported from Finance and Appropriations with amendments (15-Y 1-N)|
|01/07/2020||Senate||Senate: Prefiled and ordered printed with emergency clause; offered 01/08/20 20102785D|
|01/07/2020||Senate||Senate: Referred to Committee on Finance and Appropriations|