HB 971

Abstract

Conformity of the Commonwealth's taxation system with the Internal Revenue Code; Rebuild Virginia grants and Paycheck Protection Program loans; emergency. Advances Virginia's date of conformity with the Internal Revenue Code from December 31, 2020, to December 31, 2021. The bill also deconforms from provisions of the (i) 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, the limitation on business interest, and certain loan forgiveness and other business financial assistance and (ii) federal American Rescue Plan Act related to restaurant revitalization grants and emergency injury disaster loans received for taxable years beginning before January 1, 2021. The bill also retroactively allows up to $100,000 of the individual and corporate income tax deduction or subtraction, as applicable, for Rebuild Virginia grants and certain amounts related to Paycheck Protection Program loans to certain fiscal filers. The bill also allows full deductibility of expenses paid or incurred with forgiven Paycheck Protection Program loan proceeds and expenses paid or incurred with Economic Injury Disaster Loan program funding for taxable year 2021 and thereafter. The bill contains an emergency clause.

Conformity of the Commonwealth's taxation systemwith the Internal Revenue Code; Rebuild Virginia grants and PaycheckProtection Program loans; emergency. Advances Virginia's dateof conformity with the Internal Revenue Code from December 31, 2020,to December 31, 2021. The bill also deconforms from provisions ofthe (i) 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,the limitation on business interest, and certain loan forgivenessand other business financial assistance and (ii) federal AmericanRescue Plan Act related to restaurant revitalization grants and emergencyinjury disaster loans received for taxable years beginning beforeJanuary 1, 2021. The bill also increases from $100,000 to $1 millionthe maximum individual and corporate income tax deduction or subtraction,as applicable, for Rebuild Virginia grants and certain amounts relatedto Paycheck Protection Program loans for taxable year 2020. The billcontains an emergency clause.