Governor McAuliffe Signs Bill
Advancing Date of Income Tax Conformity
to December 31, 2015
Conformity to the Internal Revenue Code for Taxable Year 2015
Under emergency legislation (House Bill 402; Chapter 2 of the 2016 Acts of Assembly) passed by the General Assembly and signed by Governor McAuliffe on February 5, 2016, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code ("IRC") will advance from December 31, 2014 to December 31, 2015. Tax Bulletin 16-1 provides taxpayers with directions on how to reconcile this legislation with their 2015 Virginia income tax returns. This legislation allows Virginia to conform to federal tax legislation enacted during 2015 that would impact the filing of Virginia income tax returns, including the Protecting Americans from Tax Hikes Act of 2015.
Virginia will continue to disallow federal income tax deductions for bonus depreciation allowed for certain assets under Internal Revenue Code §§ 168(k), 168(l), 168(m), 1400L and 1400N; the five-year carryback of federal net operating loss deductions generated in Taxable Year 2008 or 2009; federal income tax deductions for applicable high yield discount obligations under IRC § 163(e)(5)(F); and federal income tax exclusions related to cancellation of debt income realized in connection with a reacquisition of business debt at a discount after December 31, 2008, and before January 1, 2011.
To view the full text of this tax bulletin, click here.
If you have additional questions, please visit the Department's website at http://www.tax.virginia.gov, or contact the Department at (804) 367-8031 for individual income tax questions or (804) 367-8037 for corporate income tax questions.