{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-301.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-301.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-301.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-301.html"}],"law_id":75208,"edition_id":1,"section_id":75208,"structure_id":13970,"section_number":"58.1-301","catch_line":"(Applicable to taxable years beginning on and after January 1, 2023) Conformity to Internal Revenue Code","history":"Code 1950, \u00a7 58-151.01; 1971, Ex. Sess., c. 171; 1980, c. 633; 1984, c. 675; 1994, c. 1; 2003, cc. 2, 163; 2004, c. 512; 2005, cc. 5, 26; 2006, cc. 63, 162; 2007, cc. 59, 782; 2008, cc. 1, 2; 2009, cc. 2, 3, 781; 2010, cc. 872, 874; 2011, cc. 2, 866, 890; 2012, cc. 2, 335, 480, 578; 2013, cc. 4, 693; 2014, cc. 1, 2; 2015, cc. 1, 61; 2016, cc. 2, 19; 2017, cc. 1, 2; 2018, cc. 14, 15; 2019, cc. 17, 18; 2020, cc. 1, 255; 2021, Sp. Sess. I, cc. 117, 118, 552; 2022, cc. 3, 19; 2022, Sp. Sess. I, cc. 1, 2; 2023, cc. 1, 763, 772, 791; 2023, Sp. Sess. I, c. 1.","full_text":"A\n\nAny term used in this chapter shall have the same meaning as when used in a comparable context in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required.B\n\nAny reference in this chapter to the laws of the United States relating to federal income taxes shall mean the provisions of the Internal Revenue Code of 1954, and amendments thereto, and other provisions of the laws of the United States relating to federal income taxes, except for:1\n\nThe special depreciation allowance for certain property provided for under §§ 168(k), 168(l), 168(m), 1400L, and 1400N of the Internal Revenue Code;2\n\nThe carry-back of certain net operating losses for five years under § 172(b)(1)(H) of the Internal Revenue Code;3\n\nThe original issue discount on applicable high yield discount obligations under § 163(e)(5)(F) of the Internal Revenue Code;4\n\nThe deferral of certain income under § 108(i) of the Internal Revenue Code. For Virginia income tax purposes, income from the discharge of indebtedness in connection with the reacquisition of an “applicable debt instrument” (as defined under § 108(i) of the Internal Revenue Code) reacquired in the taxable year shall be fully included in the taxpayer’s Virginia taxable income for the taxable year, unless the taxpayer elects to include such income in the taxpayer’s Virginia taxable income ratably over a three-taxable-year period beginning with taxable year 2009 for transactions completed in taxable year 2009, or over a three-taxable-year period beginning with taxable year 2010 for transactions completed in taxable year 2010 on or before April 21, 2010. For purposes of such election, all other provisions of § 108(i) of the Internal Revenue Code shall apply mutatis mutandis. No other deferral shall be allowed for income from the discharge of indebtedness in connection with the reacquisition of an “applicable debt instrument”;5\n\nFor taxable years beginning on and after January 1, 2019, the suspension of the overall limitation on itemized deductions under § 68(f) of the Internal Revenue Code;6\n\nFor taxable years beginning on and after January 1, 2017, but before January 1, 2018, and for taxable years beginning on and after January 1, 2019, the 7.5 percent of federal adjusted gross income threshold set forth in § 213(a) of the Internal Revenue Code that is used for purposes of computing the deduction allowed for expenses for medical care pursuant to § 213 of the Internal Revenue Code. For such taxable years, the threshold utilized for Virginia income tax purposes to compute the deduction allowed for expenses for medical care pursuant to § 213 of the Internal Revenue Code shall be 10 percent of federal adjusted gross income;7\n\nThe provisions of §§ 2303(a) and 2303(b) of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020), related to the net operating loss limitation and carryback;8\n\nThe provisions of § 2304(a) of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020), related to a loss limitation applicable to taxpayers other than corporations;9\n\nThe provisions of § 2306 of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020), related to the limitation on business interest;10\n\nFor taxable years beginning before January 1, 2021, the provisions of §§ 276(a), 276(b)(2), 276(b)(3), 278(a)(2), 278(a)(3), 278(b)(2), 278(b)(3), 278(c)(2), 278(c)(3), 278(d)(2), and 278(d)(3) of the federal Consolidated Appropriations Act, P.L. 116-260 (2020), and §§ 9672(2), 9672(3), 9673(2), and 9673(3) of the federal American Rescue Plan Act, P.L. 117-2 (2021) related to deductions, tax attributes, and basis increases for certain loan forgiveness and other business financial assistance; and11\n\na. (1) Any amendment enacted on or after January 1, 2023, with a projected impact that would increase or decrease general fund revenues by greater than $15 million in the fiscal year in which the amendment was enacted or any of the succeeding four fiscal years. The provisions of this subdivision shall not apply to any amendment to federal income tax law that is either subsequently adopted by the General Assembly or a federal tax extender as defined in subdivision b.2\n\nAll amendments enacted on or after January 1, 2023, and occurring between adjournment sine die of the previous regular session of the General Assembly and the first day of the subsequent regular session of the General Assembly if the cumulative projected impact of such amendments would increase or decrease general fund revenues by greater than $75 million in the fiscal year in which the amendments were enacted or any of the succeeding four fiscal years. The provisions of this subdivision shall not apply to any amendment to federal income tax law that is (i) subsequently adopted by the General Assembly, (ii) a federal tax extender as defined in subdivision b, or (iii) enacted before the date on which the cumulative projected impact is met. However, any amendment conformed to pursuant to clause (iii) shall be included in the calculation of the $75 million threshold for purposes of determining whether such threshold has been met.3\n\nBeginning January 1, 2024, the threshold provided by subdivision (1) shall be adjusted annually based on the preceding change in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U), as published by the Bureau of Labor Statistics for the U.S. Department of Labor or any successor index for the previous year.\n\t\t\t\t\tb. For purposes of this subdivision 11, “amendment” means a single amendment to federal income tax law or a group of such amendments enacted in the same act of Congress that collectively surpass the threshold impact, and “federal tax extender” means an amendment to federal tax law that extends the expiration date of a federal tax provision to which Virginia conforms or has previously conformed.\n\t\t\t\t\tc. The Secretary of Finance, in consultation with the Chairmen of the Senate Committee on Finance and Appropriations and the House Committees on Appropriations and Finance, shall be responsible for determining whether the criteria of subdivision a are met.\n\t\t\t\t\td. The Secretary of Finance shall annually provide a report on or before November 15 of each year on the fiscal impact of amendments to federal income tax law occurring since the adjournment sine die of the preceding regular session of the General Assembly to the Chairmen of the Senate Committee on Finance and Appropriations and the House Committees on Appropriations and Finance. The Secretary of Finance shall also provide updates to the same Chairmen on any further amendments to federal income tax law occurring between submission of the required report and the first day of the subsequent regular session of the General Assembly.C\n\nThe Department of Taxation is hereby authorized to develop procedures or guidelines for implementation of the provisions of this section, which procedures or guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).","order_by":null,"text":{"0":{"id":270052,"text":"Any term used in this chapter shall have the same meaning as when used in a comparable context in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":270053,"text":"Any reference in this chapter to the laws of the United States relating to federal income taxes shall mean the provisions of the Internal Revenue Code of 1954, and amendments thereto, and other provisions of the laws of the United States relating to federal income taxes, except for:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":270054,"text":"The special depreciation allowance for certain property provided for under §§ 168(k), 168(l), 168(m), 1400L, and 1400N of the Internal Revenue Code;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":270055,"text":"The carry-back of certain net operating losses for five years under § 172(b)(1)(H) of the Internal Revenue Code;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":270056,"text":"The original issue discount on applicable high yield discount obligations under § 163(e)(5)(F) of the Internal Revenue Code;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":270057,"text":"The deferral of certain income under § 108(i) of the Internal Revenue Code. For Virginia income tax purposes, income from the discharge of indebtedness in connection with the reacquisition of an “applicable debt instrument” (as defined under § 108(i) of the Internal Revenue Code) reacquired in the taxable year shall be fully included in the taxpayer’s Virginia taxable income for the taxable year, unless the taxpayer elects to include such income in the taxpayer’s Virginia taxable income ratably over a three-taxable-year period beginning with taxable year 2009 for transactions completed in taxable year 2009, or over a three-taxable-year period beginning with taxable year 2010 for transactions completed in taxable year 2010 on or before April 21, 2010. For purposes of such election, all other provisions of § 108(i) of the Internal Revenue Code shall apply mutatis mutandis. No other deferral shall be allowed for income from the discharge of indebtedness in connection with the reacquisition of an “applicable debt instrument”;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":270058,"text":"For taxable years beginning on and after January 1, 2019, the suspension of the overall limitation on itemized deductions under § 68(f) of the Internal Revenue Code;","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":270059,"text":"For taxable years beginning on and after January 1, 2017, but before January 1, 2018, and for taxable years beginning on and after January 1, 2019, the 7.5 percent of federal adjusted gross income threshold set forth in § 213(a) of the Internal Revenue Code that is used for purposes of computing the deduction allowed for expenses for medical care pursuant to § 213 of the Internal Revenue Code. For such taxable years, the threshold utilized for Virginia income tax purposes to compute the deduction allowed for expenses for medical care pursuant to § 213 of the Internal Revenue Code shall be 10 percent of federal adjusted gross income;","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"8":{"id":270060,"text":"The provisions of §§ 2303(a) and 2303(b) of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020), related to the net operating loss limitation and carryback;","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6","next_prefix":"B8"},"9":{"id":270061,"text":"The provisions of § 2304(a) of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020), related to a loss limitation applicable to taxpayers other than corporations;","type":"section","prefixes":["B","8"],"prefix":"8","entire_prefix":"B8","prefix_anchor":"B8","level":2,"prior_prefix":"B7","next_prefix":"B9"},"10":{"id":270062,"text":"The provisions of § 2306 of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020), related to the limitation on business interest;","type":"section","prefixes":["B","9"],"prefix":"9","entire_prefix":"B9","prefix_anchor":"B9","level":2,"prior_prefix":"B8","next_prefix":"B10"},"11":{"id":270063,"text":"For taxable years beginning before January 1, 2021, the provisions of §§ 276(a), 276(b)(2), 276(b)(3), 278(a)(2), 278(a)(3), 278(b)(2), 278(b)(3), 278(c)(2), 278(c)(3), 278(d)(2), and 278(d)(3) of the federal Consolidated Appropriations Act, P.L. 116-260 (2020), and §§ 9672(2), 9672(3), 9673(2), and 9673(3) of the federal American Rescue Plan Act, P.L. 117-2 (2021) related to deductions, tax attributes, and basis increases for certain loan forgiveness and other business financial assistance; and","type":"section","prefixes":["B","10"],"prefix":"10","entire_prefix":"B10","prefix_anchor":"B10","level":2,"prior_prefix":"B9","next_prefix":"B11"},"12":{"id":270064,"text":"a. (1) Any amendment enacted on or after January 1, 2023, with a projected impact that would increase or decrease general fund revenues by greater than $15 million in the fiscal year in which the amendment was enacted or any of the succeeding four fiscal years. The provisions of this subdivision shall not apply to any amendment to federal income tax law that is either subsequently adopted by the General Assembly or a federal tax extender as defined in subdivision b.","type":"section","prefixes":["B","11"],"prefix":"11","entire_prefix":"B11","prefix_anchor":"B11","level":2,"prior_prefix":"B10","next_prefix":"B112"},"13":{"id":270065,"text":"All amendments enacted on or after January 1, 2023, and occurring between adjournment sine die of the previous regular session of the General Assembly and the first day of the subsequent regular session of the General Assembly if the cumulative projected impact of such amendments would increase or decrease general fund revenues by greater than $75 million in the fiscal year in which the amendments were enacted or any of the succeeding four fiscal years. The provisions of this subdivision shall not apply to any amendment to federal income tax law that is (i) subsequently adopted by the General Assembly, (ii) a federal tax extender as defined in subdivision b, or (iii) enacted before the date on which the cumulative projected impact is met. However, any amendment conformed to pursuant to clause (iii) shall be included in the calculation of the $75 million threshold for purposes of determining whether such threshold has been met.","type":"section","prefixes":["B","11","2"],"prefix":"2","entire_prefix":"B112","prefix_anchor":"B112","level":3,"prior_prefix":"B11","next_prefix":"B113"},"14":{"id":270066,"text":"Beginning January 1, 2024, the threshold provided by subdivision (1) shall be adjusted annually based on the preceding change in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U), as published by the Bureau of Labor Statistics for the U.S. Department of Labor or any successor index for the previous year.\n\t\t\t\t\tb. For purposes of this subdivision 11, “amendment” means a single amendment to federal income tax law or a group of such amendments enacted in the same act of Congress that collectively surpass the threshold impact, and “federal tax extender” means an amendment to federal tax law that extends the expiration date of a federal tax provision to which Virginia conforms or has previously conformed.\n\t\t\t\t\tc. The Secretary of Finance, in consultation with the Chairmen of the Senate Committee on Finance and Appropriations and the House Committees on Appropriations and Finance, shall be responsible for determining whether the criteria of subdivision a are met.\n\t\t\t\t\td. The Secretary of Finance shall annually provide a report on or before November 15 of each year on the fiscal impact of amendments to federal income tax law occurring since the adjournment sine die of the preceding regular session of the General Assembly to the Chairmen of the Senate Committee on Finance and Appropriations and the House Committees on Appropriations and Finance. The Secretary of Finance shall also provide updates to the same Chairmen on any further amendments to federal income tax law occurring between submission of the required report and the first day of the subsequent regular session of the General Assembly.","type":"section","prefixes":["B","11","3"],"prefix":"3","entire_prefix":"B113","prefix_anchor":"B113","level":3,"prior_prefix":"B112","next_prefix":"C"},"15":{"id":270067,"text":"The Department of Taxation is hereby authorized to develop procedures or guidelines for implementation of the provisions of this section, which procedures or guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B113"}},"ancestry":[{"id":13970,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:46:27","date_modified":"2026-06-26 03:46:27","permalink":{"id":253269,"object_type":"structure","relational_id":13970,"identifier":"1","token":"58.1\/I\/3\/1","url":"\/58.1\/I\/3\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":55031,"structure_id":13970,"section_number":"58.1-300","catch_line":"Incomes not subject to local taxation","url":"\/58.1-300\/","token":"58.1\/I\/3\/1\/58.1-300","metadata":false},{"id":75208,"structure_id":13970,"section_number":"58.1-301","catch_line":"(Applicable to taxable years beginning on and after January 1, 2023) Conformity to Internal Revenue Code","url":"\/58.1-301\/","token":"58.1\/I\/3\/1\/58.1-301","metadata":false},{"id":82538,"structure_id":13970,"section_number":"58.1-302","catch_line":"Definitions","url":"\/58.1-302\/","token":"58.1\/I\/3\/1\/58.1-302","metadata":false},{"id":76987,"structure_id":13970,"section_number":"58.1-303","catch_line":"Residency for portion of tax year","url":"\/58.1-303\/","token":"58.1\/I\/3\/1\/58.1-303","metadata":false},{"id":63944,"structure_id":13970,"section_number":"58.1-304","catch_line":"Reserved","url":"\/58.1-304\/","token":"58.1\/I\/3\/1\/58.1-304","metadata":false},{"id":80064,"structure_id":13970,"section_number":"58.1-305","catch_line":"Duties of commissioner of the revenue relating to income tax","url":"\/58.1-305\/","token":"58.1\/I\/3\/1\/58.1-305","metadata":false},{"id":81043,"structure_id":13970,"section_number":"58.1-306","catch_line":"Filing of individual, estate or trust income tax returns with the Department","url":"\/58.1-306\/","token":"58.1\/I\/3\/1\/58.1-306","metadata":false},{"id":83380,"structure_id":13970,"section_number":"58.1-307","catch_line":"Disposition of returns; 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The record of this law\u2019s original creation isn\u2019t available online. It has been modified 23 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1980, chapter 633; in 1984, chapter 675; in 1994, chapter 1<\/a>; in 2003, chapters 2<\/a> and 163<\/a>; in 2004, chapter 512<\/a>; in 2005, chapters 5<\/a> and 26<\/a>; in 2006, chapters 63<\/a> and 162<\/a>; in 2007, chapters 59<\/a> and 782<\/a>; in 2008, chapters 1<\/a> and 2<\/a>; in 2009, chapters 2<\/a>, 3<\/a>, and 781<\/a>; in 2010, chapters 872<\/a> and 874<\/a>; in 2011, chapters 2<\/a>, 866<\/a>, and 890<\/a>; in 2012, chapters 2<\/a>, 335<\/a>, 480<\/a>, and 578<\/a>; in 2013, chapters 4<\/a> and 693<\/a>; in 2014, chapters 1<\/a> and 2<\/a>; in 2015, chapters 1<\/a> and 61<\/a>; in 2016, chapters 2<\/a> and 19<\/a>; in 2017, chapters 1<\/a> and 2<\/a>; in 2018, chapters 14<\/a> and 15<\/a>; in 2019, chapters 17<\/a> and 18<\/a>; in 2020, chapters 1<\/a> and 255<\/a>; in 2022, chapters 3<\/a> and 19<\/a>; in 2023, chapters 1<\/a>, 763<\/a>, 772<\/a>, and 791<\/a>.<\/p>","references":[{"id":72527,"section_number":"13.1-1120","catch_line":"Income and property taxes","order_by":null,"url":"\/13.1-1120\/"},{"id":79461,"section_number":"58.1-322.03","catch_line":"Virginia taxable income; deductions","order_by":null,"url":"\/58.1-322.03\/"},{"id":56970,"section_number":"58.1-402","catch_line":"Virginia taxable income","order_by":null,"url":"\/58.1-402\/"}],"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"}],"permalink":{"id":253275,"object_type":"law","relational_id":75208,"identifier":"58.1-301","token":"58.1\/I\/3\/1\/58.1-301","url":"\/58.1-301\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-301\/","token":"58.1\/I\/3\/1\/58.1-301","dublin_core":{"Title":"(Applicable to taxable years beginning on and after January 1, 2023) Conformity to Internal Revenue Code","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-301","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any term used in this chapter shall have the same meaning as when used in a comparable context in the laws<\/span> of the United States relating to federal income taxes, unless a different meaning is clearly required. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any reference in this chapter to the laws<\/span> of the United States relating to federal income taxes shall mean the provisions of the Internal Revenue Code of 1954, and amendments<\/span> thereto, and other provisions of the laws<\/span> of the United States relating to federal income taxes, except for: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The special depreciation allowance for certain property provided for under §§ 168(k), 168(l), 168(m), 1400L, and 1400N of the Internal Revenue Code; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The carry-back of certain net operating losses for five years under § 172(b)(1)(H) of the Internal Revenue Code; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The original issue<\/span> discount on applicable high yield discount obligations under § 163(e)(5)(F) of the Internal Revenue Code; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The deferral of certain income under § 108(i) of the Internal Revenue Code. For Virginia income tax purposes, income from the discharge of indebtedness in connection with the reacquisition of an “applicable debt instrument” (as defined under § 108(i) of the Internal Revenue Code) reacquired in the taxable year shall be fully included in the taxpayer<\/span>’s Virginia taxable income for the taxable year, unless the taxpayer<\/span> elects to include such income in the taxpayer<\/span>’s Virginia taxable income ratably over a three-taxable-year period beginning with taxable year 2009 for transactions completed in taxable year 2009, or over a three-taxable-year period beginning with taxable year 2010 for transactions completed in taxable year 2010 on or before April 21, 2010. For purposes of such election, all other provisions of § 108(i) of the Internal Revenue Code shall apply mutatis mutandis<\/span>. No other deferral shall be allowed for income from the discharge of indebtedness in connection with the reacquisition of an “applicable debt instrument”; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> For taxable years beginning on and after January 1, 2019, the suspension of the overall limitation on itemized deductions under § 68(f) of the Internal Revenue Code; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> For taxable years beginning on and after January 1, 2017, but before January 1, 2018, and for taxable years beginning on and after January 1, 2019, the 7.5 percent of federal adjusted gross income threshold set forth in § 213(a) of the Internal Revenue Code that is used for purposes of computing the deduction allowed for expenses for medical care pursuant to § 213 of the Internal Revenue Code. For such taxable years, the threshold utilized for Virginia income tax purposes to compute the deduction allowed for expenses for medical care pursuant to § 213 of the Internal Revenue Code shall be 10 percent of federal adjusted gross income; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The provisions of §§ 2303(a) and 2303(b) of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020), related to the net operating loss limitation and carryback; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> The provisions of § 2304(a) of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020), related to a loss limitation applicable to taxpayers<\/span> other than corporations<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> The provisions of § 2306 of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020), related to the limitation on business interest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> For taxable years beginning before January 1, 2021, the provisions of §§ 276(a), 276(b)(2), 276(b)(3), 278(a)(2), 278(a)(3), 278(b)(2), 278(b)(3), 278(c)(2), 278(c)(3), 278(d)(2), and 278(d)(3) of the federal Consolidated Appropriations Act, P.L. 116-260 (2020), and §§ 9672(2), 9672(3), 9673(2), and 9673(3) of the federal American Rescue Plan Act, P.L. 117-2 (2021) related to deductions, tax attributes, and basis increases for certain loan forgiveness and other business financial assistance; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> a. (1) Any amendment<\/span> enacted on or after January 1, 2023, with a projected impact that would increase or decrease general fund revenues by greater than $15 million in the fiscal year in which the amendment<\/span> was enacted or any of the succeeding four fiscal years. The provisions of this subdivision shall not apply to any amendment<\/span> to federal income tax law<\/span> that is either subsequently adopted by the General Assembly or a federal tax extender<\/span> as defined in subdivision b. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> All amendments<\/span> enacted on or after January 1, 2023, and occurring between adjournment sine die of the previous regular session of the General Assembly and the first day of the subsequent regular session of the General Assembly if the cumulative projected impact of such amendments<\/span> would increase or decrease general fund revenues by greater than $75 million in the fiscal year in which the amendments<\/span> were enacted or any of the succeeding four fiscal years. The provisions of this subdivision shall not apply to any amendment<\/span> to federal income tax law<\/span> that is (i) subsequently adopted by the General Assembly, (ii) a federal tax extender<\/span> as defined in subdivision b, or (iii) enacted before the date on which the cumulative projected impact is met. However, any amendment<\/span> conformed to pursuant to clause (iii) shall be included in the calculation of the $75 million threshold for purposes of determining whether such threshold has been met. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Beginning January 1, 2024, the threshold provided by subdivision (1) shall be adjusted annually based on the preceding change in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U), as published by the Bureau of Labor Statistics for the U.S. Department<\/span> of Labor or any successor index for the previous year.\n\t\t\t\t\tb. For purposes of this subdivision 11, “amendment<\/span>” means a single amendment<\/span> to federal income tax law<\/span> or a group of such amendments<\/span> enacted in the same act of Congress that collectively surpass the threshold impact, and “federal tax extender<\/span>” means an amendment<\/span> to federal tax law<\/span> that extends the expiration date of a federal tax provision to which Virginia conforms or has previously conformed.\n\t\t\t\t\tc. The Secretary of Finance, in consultation with the Chairmen of the Senate Committee on Finance and Appropriations and the House Committees on Appropriations and Finance, shall be responsible for determining whether the criteria of subdivision a are met.\n\t\t\t\t\td. The Secretary of Finance shall annually provide a report on or before November 15 of each year on the fiscal impact of amendments<\/span> to federal income tax law<\/span> occurring since the adjournment sine die of the preceding regular session of the General Assembly to the Chairmen of the Senate Committee on Finance and Appropriations and the House Committees on Appropriations and Finance. The Secretary of Finance shall also provide updates to the same Chairmen on any further amendments<\/span> to federal income tax law<\/span> occurring between submission of the required report and the first day of the subsequent regular session of the General Assembly. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Department<\/span> of Taxation is hereby authorized to develop procedures or guidelines for implementation of the provisions of this section, which procedures or guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n(APPLICABLE TO TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1, 2023) CONFORMITY\nTO INTERNAL REVENUE CODE (\u00a7 58.1-301)\n\nA. Any term used in this chapter shall have the same meaning as when used in a\ncomparable context in the laws of the United States relating to federal income\ntaxes, unless a different meaning is clearly required.\n\nB. Any reference in this chapter to the laws of the United States relating to\nfederal income taxes shall mean the provisions of the Internal Revenue Code of\n1954, and amendments thereto, and other provisions of the laws of the United\nStates relating to federal income taxes, except for:\n\n 1. The special depreciation allowance for certain property provided for under\n §§ 168(k), 168(l), 168(m), 1400L, and 1400N of the Internal Revenue\n Code;\n\n 2. The carry-back of certain net operating losses for five years under §\n 172(b)(1)(H) of the Internal Revenue Code;\n\n 3. The original issue discount on applicable high yield discount obligations\n under § 163(e)(5)(F) of the Internal Revenue Code;\n\n 4. The deferral of certain income under § 108(i) of the Internal Revenue\n Code. For Virginia income tax purposes, income from the discharge of\n indebtedness in connection with the reacquisition of an “applicable debt\n instrument” (as defined under § 108(i) of the Internal Revenue\n Code) reacquired in the taxable year shall be fully included in the\n taxpayer’s Virginia taxable income for the taxable year, unless the\n taxpayer elects to include such income in the taxpayer’s Virginia\n taxable income ratably over a three-taxable-year period beginning with taxable\n year 2009 for transactions completed in taxable year 2009, or over a\n three-taxable-year period beginning with taxable year 2010 for transactions\n completed in taxable year 2010 on or before April 21, 2010. For purposes of\n such election, all other provisions of § 108(i) of the Internal Revenue\n Code shall apply mutatis mutandis. No other deferral shall be allowed for\n income from the discharge of indebtedness in connection with the reacquisition\n of an “applicable debt instrument”;\n\n 5. For taxable years beginning on and after January 1, 2019, the suspension of\n the overall limitation on itemized deductions under § 68(f) of the\n Internal Revenue Code;\n\n 6. For taxable years beginning on and after January 1, 2017, but before\n January 1, 2018, and for taxable years beginning on and after January 1, 2019,\n the 7.5 percent of federal adjusted gross income threshold set forth in §\n 213(a) of the Internal Revenue Code that is used for purposes of computing the\n deduction allowed for expenses for medical care pursuant to § 213 of the\n Internal Revenue Code. For such taxable years, the threshold utilized for\n Virginia income tax purposes to compute the deduction allowed for expenses for\n medical care pursuant to § 213 of the Internal Revenue Code shall be 10\n percent of federal adjusted gross income;\n\n 7. The provisions of §§ 2303(a) and 2303(b) of the federal\n Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020),\n related to the net operating loss limitation and carryback;\n\n 8. The provisions of § 2304(a) of the federal Coronavirus Aid, Relief,\n and Economic Security Act, P.L. 116-136 (2020), related to a loss limitation\n applicable to taxpayers other than corporations;\n\n 9. The provisions of § 2306 of the federal Coronavirus Aid, Relief, and\n Economic Security Act, P.L. 116-136 (2020), related to the limitation on\n business interest;\n\n 10. For taxable years beginning before January 1, 2021, the provisions of\n §§ 276(a), 276(b)(2), 276(b)(3), 278(a)(2), 278(a)(3), 278(b)(2),\n 278(b)(3), 278(c)(2), 278(c)(3), 278(d)(2), and 278(d)(3) of the federal\n Consolidated Appropriations Act, P.L. 116-260 (2020), and §§\n 9672(2), 9672(3), 9673(2), and 9673(3) of the federal American Rescue Plan\n Act, P.L. 117-2 (2021) related to deductions, tax attributes, and basis\n increases for certain loan forgiveness and other business financial\n assistance; and\n\n 11. a. (1) Any amendment enacted on or after January 1, 2023, with a projected\n impact that would increase or decrease general fund revenues by greater than\n $15 million in the fiscal year in which the amendment was enacted or any of\n the succeeding four fiscal years. The provisions of this subdivision shall not\n apply to any amendment to federal income tax law that is either subsequently\n adopted by the General Assembly or a federal tax extender as defined in\n subdivision b.\n\n 2. All amendments enacted on or after January 1, 2023, and occurring between\n adjournment sine die of the previous regular session of the General Assembly\n and the first day of the subsequent regular session of the General Assembly\n if the cumulative projected impact of such amendments would increase or\n decrease general fund revenues by greater than $75 million in the fiscal\n year in which the amendments were enacted or any of the succeeding four\n fiscal years. The provisions of this subdivision shall not apply to any\n amendment to federal income tax law that is (i) subsequently adopted by the\n General Assembly, (ii) a federal tax extender as defined in subdivision b,\n or (iii) enacted before the date on which the cumulative projected impact is\n met. However, any amendment conformed to pursuant to clause (iii) shall be\n included in the calculation of the $75 million threshold for purposes of\n determining whether such threshold has been met.\n\n 3. Beginning January 1, 2024, the threshold provided by subdivision (1)\n shall be adjusted annually based on the preceding change in the Chained\n Consumer Price Index for All Urban Consumers (C-CPI-U), as published by the\n Bureau of Labor Statistics for the U.S. Department of Labor or any successor\n index for the previous year.\n \t\t\t\t\tb. For purposes of this subdivision 11, “amendment” means a\n single amendment to federal income tax law or a group of such amendments\n enacted in the same act of Congress that collectively surpass the threshold\n impact, and “federal tax extender” means an amendment to federal\n tax law that extends the expiration date of a federal tax provision to which\n Virginia conforms or has previously conformed.\n \t\t\t\t\tc. The Secretary of Finance, in consultation with the Chairmen of the\n Senate Committee on Finance and Appropriations and the House Committees on\n Appropriations and Finance, shall be responsible for determining whether the\n criteria of subdivision a are met.\n \t\t\t\t\td. The Secretary of Finance shall annually provide a report on or\n before November 15 of each year on the fiscal impact of amendments to\n federal income tax law occurring since the adjournment sine die of the\n preceding regular session of the General Assembly to the Chairmen of the\n Senate Committee on Finance and Appropriations and the House Committees on\n Appropriations and Finance. The Secretary of Finance shall also provide\n updates to the same Chairmen on any further amendments to federal income tax\n law occurring between submission of the required report and the first day of\n the subsequent regular session of the General Assembly.\n\nC. The Department of Taxation is hereby authorized to develop procedures or\nguidelines for implementation of the provisions of this section, which\nprocedures or guidelines shall be exempt from the provisions of the\nAdministrative Process Act (§ 2.2-4000 et seq.).\n\nHISTORY: Code 1950, \u00a7 58-151.01; 1971, Ex. Sess., c. 171; 1980, c. 633; 1984,\nc. 675; 1994, c. 1; 2003, cc. 2, 163; 2004, c. 512; 2005, cc. 5, 26; 2006, cc.\n63, 162; 2007, cc. 59, 782; 2008, cc. 1, 2; 2009, cc. 2, 3, 781; 2010, cc. 872,\n874; 2011, cc. 2, 866, 890; 2012, cc. 2, 335, 480, 578; 2013, cc. 4, 693; 2014,\ncc. 1, 2; 2015, cc. 1, 61; 2016, cc. 2, 19; 2017, cc. 1, 2; 2018, cc. 14, 15;\n2019, cc. 17, 18; 2020, cc. 1, 255; 2021, Sp. Sess. I, cc. 117, 118, 552; 2022,\ncc. 3, 19; 2022, Sp. Sess. I, cc. 1, 2; 2023, cc. 1, 763, 772, 791; 2023, Sp.\nSess. I, c. 1.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}