VirginiaIncome tax, corporate; taxable income, net operating loss.
What it does
Corporate income tax; taxable income; net operating loss. Provides that, beginning in taxable year 2027, for purposes of calculating the Virginia taxable income of corporations, federal income means any income taxable to the corporation under federal law for such year excluding net operating loss deductions under federal tax law. The bill also creates a Virginia corporate income tax net operating loss deduction, beginning in taxable year 2027, in an amount equal to the aggregate Virginia net operating losses for such taxable year, plus any transitional net operating loss deduction, pursuant to a calculation in the bill, and subject to certain other adjustments in the bill.
More detail
The bill also prohibits a corporation's Virginia taxable income, after all other adjustments, allocation, and apportionment, from being reduced below zero by a Virginia net operating loss deduction. The bill also includes particular procedures for corporate income tax returns prepared on a consolidated or a combined basis. Finally, the bill directs the Department of Taxation to issue preliminary guidelines implementing the provisions of the bill and to cooperate with and seek counsel from interested stakeholders before issuing its final guidelines. The bill has a delayed effective date of January 1, 2027.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 3Continued to next session in Finance and Appropriations (14-Y 1-N)Latest
- Vote recorded Continued to next session in Finance and Appropriations. Result: pass.Upper
- Feb 11Referred to Committee on Finance and AppropriationsMinor
- Feb 11Constitutional reading dispensed (on 1st reading)
- Feb 10Read third time and passed House (96-Y 1-N 1-A)Passed House
- Vote recorded H VOTE:. Result: pass.Lower
- Feb 10Moved from Uncontested Calendar to Regular Calendar
- Feb 9Read second time and engrossedMinor
- Feb 6Read first timeMinor
- Feb 4Reported from Finance (22-Y 0-N)Minor
- Vote recorded Reported from Finance. Result: pass.Lower
- Feb 2Subcommittee recommends reporting (9-Y 0-N)
- Vote recorded Subcommittee recommends reporting. Result: pass.Lower
- Feb 1Fiscal Impact statement From TAX (2/1/2026 11:34 pm)
- Jan 13Referred to Committee on FinanceMinor
- Jan 13Prefiled and ordered printed; Offered 01-14-2026 26102351DIntroduced
- Mar 3Continued to next session in Finance and Appropriations (14-Y 1-N)Latest