SB 1058

Abstract

Corporate income tax returns of affiliated corporations. Provides that, for taxable years 2020 through 2021, certain affiliated corporations may elect to switch to or from consolidated corporate income tax return filing status under certain conditions. The option would be available only to a group with at least one affiliate that is (i) a bank exempt from filing a Virginia corporate income tax return or (ii) an aerospace manufacturer. Current law requires a group of corporations to apply to the Tax Commissioner for permission to change the basis of the type of return filed and to meet certain specified requirements in order for permission to be granted. The provisions of the bill are contingent on funding in a general appropriation act.

Corporate income tax returns of affiliated corporations.Simplifies the process by which companies elect to switch toor from consolidated corporate income tax return filing status andreduces from 20 years to five years the necessary period during whichthe affiliated group of corporations filed on the same basis priorto switching to consolidated corporate return filing status. Currentlaw requires a group of corporations to apply to the Tax Commissionerfor permission to change the basis of the type of return filed andto meet certain specified requirements in order for permission tobe granted.