Introduced in House Passed House Introduced in Senate Passed Senate Became Law
01/07/2020     01/29/2020  

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.

Date Version PDF TXT
01/23/2020 Senate: Printed as engrossed 20102785D-E Open
01/07/2020 Senate: Prefiled and ordered printed with emergency clause; offered 01/08/20 20102785D Open

            

2020 SESSION

    20102785D
    SENATE BILL NO. 582
    Senate Amendments in [ ] � January 23, 2020
    A BILL to amend and reenact � 58-301 of the Code of Virginia, relating to conformity of the Commonwealths taxation system with the Internal Revenue Code.
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    Patron Prior to Engrossment--Senator Howell
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    Referred to Committee on Finance and Appropriations
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    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, 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"; [ and ]

    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.

    Picture Name From Date Type
    Janet D. Howell D-Richmond Sponsor
    Janet D. Howell R-Richmond Sponsor
    Date Branch Action
    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
    Summary
    Congress - Bill Number Major Title
    Branch Vote Date Yes No Not Voting
    Wiki





    Start Description.
    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.
    End Description.

    Bill TEXT Points.
    This Bill has been listed with the following Subjects from Texts:
    Virginia
    582 Offered January 8, 2020 Prefiled January 7, 2020 A BILL to amend and reenact � 58-301 of the Code of Virginia, relating to conformity of the Commonwealths taxation system with the Internal Revenue Code


    End Bill TEXT Points.
    Date Bill Major Title
    Committee Name
    Subject Type