HB 1935

Abstract

Conformity of the Commonwealth's taxation system with the Internal Revenue Code; emergency. Advances Virginia's date of conformity with the Internal Revenue Code from December 31, 2019, to December 31, 2020. The bill adds exceptions to such conformity for suspension of the overall limitation on itemized deductions and the reduction in the medical expense deduction floor for taxable year 2017 and taxable years on and after January 1, 2019, and for the provisions of the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) related to the net operating loss limitation and carryback, a loss limitation applicable to taxpayers other than corporations, and the limitation on business interest. The bill also includes an individual income tax deduction in taxable year 2020 for business expenses funded with forgiven Paycheck Protection Program loans up to $25,000 and an individual income tax subtraction in taxable year 2020 for up to $25,000 in Rebuild Virginia grants.

Conformity of the Commonwealth's taxation systemwith the Internal Revenue Code; emergency. Advances Virginia%92sdate of conformity with the Internal Revenue Code from December 31,2019, to December 31, 2020. The bill adds exceptions to such conformityfor suspension of the overall limitation on itemized deductions andthe reduction in the medical expense deduction floor for taxableyear 2017 and taxable years on and after January 1, 2019, and for the provisions of the federal Coronavirus Aid, Relief, and EconomicSecurity Act (CARES Act) related to the net operating loss limitationand carryback, a loss limitation applicable to taxpayers other thancorporations, and the limitation on business interest. The bill contains an emergency clause.