{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-440.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-440.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-440.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-440.1.html"}],"law_id":54651,"edition_id":1,"section_id":54651,"structure_id":13546,"section_number":"58.1-440.1","catch_line":"Accounting-deferred taxes","history":"1999, c. 971; 2000, cc. 691, 706.","full_text":"In the case of a pipeline distribution company, a gas utility, a gas supplier or an electric supplier, as defined in \u00a7 58.1-400.2, that was subject to the tax imposed under \u00a7 58.1-2626 with respect to its gross receipts received during the year commencing January 1, 2000, and that on or after January 1, 2001, becomes subject to the corporate income tax pursuant to Article 10 (\u00a7 58.1-400 et seq.) of this chapter, net income shall be computed by taking into account the following adjustments:\n\t\tIn addition to the deductions for depreciation, amortization, or other cost recovery currently allowed by this Code, there shall be allowed deductions for the amortization of the Virginia tax basis of assets that are recoverable for financial accounting and\/or income tax purposes placed in service prior to the adjustment date. For purposes of this section, (i) “Virginia tax basis” means the aggregate adjusted book basis less the aggregate adjusted tax basis of such assets as recorded on the company’s books of accounts as of the last day of the tax year immediately preceding the adjustment date and (ii) “adjustment date” means the first day of the tax year in which such pipeline distribution company, gas utility, gas supplier or electric supplier becomes subject to the tax imposed by \u00a7 58.1-400.2 A. The amortization of the Virginia tax basis shall be computed using the straight-line method over a period of thirty years, beginning on the adjustment date. Gain or loss on the disposition or retirement of any such asset shall be computed using its adjusted federal tax basis, and the amortization of the Virginia tax basis shall continue thereafter without adjustment. The Department of Taxation shall promulgate regulations describing a reasonable method of allocating the Virginia tax basis in the event that a portion of the operations of a pipeline distribution company, gas utility, gas supplier or electric supplier are separated, spun-off, transferred to a separate company or otherwise disaggregated. For gas suppliers, pipeline distribution companies or gas utilities which are required to file an income tax return for a short taxable year pursuant to subsection E of \u00a7 58.1-400.2, a portion of the amortized Virginia tax basis will be disallowed based on the proration in computing Virginia taxable income. Such portion will be recovered as a deduction in the first taxable year after which this deduction is no longer applicable.\n\t\tFor rate-making and accounting purposes, the State Corporation Commission shall not require a pipeline distribution company or gas utility to amortize these deferred taxes over a period other than the thirty-year period prescribed herein, nor shall the State Corporation Commission require the treatment of accelerated depreciation different from that allowed for federal income taxes.","order_by":null,"text":{"0":{"id":200684,"text":"In the case of a pipeline distribution company, a gas utility, a gas supplier or an electric supplier, as defined in \u00a7 58.1-400.2, that was subject to the tax imposed under \u00a7 58.1-2626 with respect to its gross receipts received during the year commencing January 1, 2000, and that on or after January 1, 2001, becomes subject to the corporate income tax pursuant to Article 10 (\u00a7 58.1-400 et seq.) of this chapter, net income shall be computed by taking into account the following adjustments:\n\t\tIn addition to the deductions for depreciation, amortization, or other cost recovery currently allowed by this Code, there shall be allowed deductions for the amortization of the Virginia tax basis of assets that are recoverable for financial accounting and\/or income tax purposes placed in service prior to the adjustment date. For purposes of this section, (i) “Virginia tax basis” means the aggregate adjusted book basis less the aggregate adjusted tax basis of such assets as recorded on the company’s books of accounts as of the last day of the tax year immediately preceding the adjustment date and (ii) “adjustment date” means the first day of the tax year in which such pipeline distribution company, gas utility, gas supplier or electric supplier becomes subject to the tax imposed by \u00a7 58.1-400.2 A. The amortization of the Virginia tax basis shall be computed using the straight-line method over a period of thirty years, beginning on the adjustment date. Gain or loss on the disposition or retirement of any such asset shall be computed using its adjusted federal tax basis, and the amortization of the Virginia tax basis shall continue thereafter without adjustment. The Department of Taxation shall promulgate regulations describing a reasonable method of allocating the Virginia tax basis in the event that a portion of the operations of a pipeline distribution company, gas utility, gas supplier or electric supplier are separated, spun-off, transferred to a separate company or otherwise disaggregated. For gas suppliers, pipeline distribution companies or gas utilities which are required to file an income tax return for a short taxable year pursuant to subsection E of \u00a7 58.1-400.2, a portion of the amortized Virginia tax basis will be disallowed based on the proration in computing Virginia taxable income. Such portion will be recovered as a deduction in the first taxable year after which this deduction is no longer applicable.\n\t\tFor rate-making and accounting purposes, the State Corporation Commission shall not require a pipeline distribution company or gas utility to amortize these deferred taxes over a period other than the thirty-year period prescribed herein, nor shall the State Corporation Commission require the treatment of accelerated depreciation different from that allowed for federal income taxes.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":13546,"edition_id":1,"name":"Accounting, Returns, Procedures for Corporations","identifier":"14","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:45:11","date_modified":"2026-06-26 03:45:11","permalink":{"id":253719,"object_type":"structure","relational_id":13546,"identifier":"14","token":"58.1\/I\/3\/14","url":"\/58.1\/I\/3\/14\/","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":60123,"structure_id":13546,"section_number":"58.1-440","catch_line":"Accounting","url":"\/58.1-440\/","token":"58.1\/I\/3\/14\/58.1-440","metadata":false},{"id":54651,"structure_id":13546,"section_number":"58.1-440.1","catch_line":"Accounting-deferred taxes","url":"\/58.1-440.1\/","token":"58.1\/I\/3\/14\/58.1-440.1","metadata":false},{"id":72207,"structure_id":13546,"section_number":"58.1-441","catch_line":"Reports by corporations","url":"\/58.1-441\/","token":"58.1\/I\/3\/14\/58.1-441","metadata":false},{"id":69106,"structure_id":13546,"section_number":"58.1-442","catch_line":"Separate, combined, or consolidated returns of affiliated corporations","url":"\/58.1-442\/","token":"58.1\/I\/3\/14\/58.1-442","metadata":false},{"id":85145,"structure_id":13546,"section_number":"58.1-443","catch_line":"Prohibition of worldwide consolidation or combination","url":"\/58.1-443\/","token":"58.1\/I\/3\/14\/58.1-443","metadata":false},{"id":54510,"structure_id":13546,"section_number":"58.1-444","catch_line":"Several liability of affiliated corporations","url":"\/58.1-444\/","token":"58.1\/I\/3\/14\/58.1-444","metadata":false},{"id":63978,"structure_id":13546,"section_number":"58.1-445","catch_line":"Consolidation of accounts","url":"\/58.1-445\/","token":"58.1\/I\/3\/14\/58.1-445","metadata":false},{"id":65477,"structure_id":13546,"section_number":"58.1-445.1","catch_line":"Repealed","url":"\/58.1-445.1\/","token":"58.1\/I\/3\/14\/58.1-445.1","metadata":false},{"id":73547,"structure_id":13546,"section_number":"58.1-446","catch_line":"Price manipulation; intercorporate transactions; parent corporations and subsidiaries","url":"\/58.1-446\/","token":"58.1\/I\/3\/14\/58.1-446","metadata":false},{"id":59908,"structure_id":13546,"section_number":"58.1-447","catch_line":"Execution of returns of corporations","url":"\/58.1-447\/","token":"58.1\/I\/3\/14\/58.1-447","metadata":false},{"id":70673,"structure_id":13546,"section_number":"58.1-448","catch_line":"Forms to be furnished","url":"\/58.1-448\/","token":"58.1\/I\/3\/14\/58.1-448","metadata":false},{"id":55649,"structure_id":13546,"section_number":"58.1-449","catch_line":"Supplemental reports","url":"\/58.1-449\/","token":"58.1\/I\/3\/14\/58.1-449","metadata":false},{"id":54972,"structure_id":13546,"section_number":"58.1-450","catch_line":"Failure of corporation to make report or return","url":"\/58.1-450\/","token":"58.1\/I\/3\/14\/58.1-450","metadata":false},{"id":56719,"structure_id":13546,"section_number":"58.1-451","catch_line":"Fraudulent returns, etc., of corporations; penalty","url":"\/58.1-451\/","token":"58.1\/I\/3\/14\/58.1-451","metadata":false},{"id":81878,"structure_id":13546,"section_number":"58.1-452","catch_line":"Fraudulent returns; criminal liability; penalty","url":"\/58.1-452\/","token":"58.1\/I\/3\/14\/58.1-452","metadata":false},{"id":57652,"structure_id":13546,"section_number":"58.1-453","catch_line":"Extension of time for filing returns by corporations","url":"\/58.1-453\/","token":"58.1\/I\/3\/14\/58.1-453","metadata":false},{"id":59422,"structure_id":13546,"section_number":"58.1-454","catch_line":"Department may estimate corporation's tax when no return filed","url":"\/58.1-454\/","token":"58.1\/I\/3\/14\/58.1-454","metadata":false},{"id":83702,"structure_id":13546,"section_number":"58.1-455","catch_line":"Time of payment of corporation income taxes; penalty and interest for nonpayment","url":"\/58.1-455\/","token":"58.1\/I\/3\/14\/58.1-455","metadata":false}],"previous_section":{"id":60123,"structure_id":13546,"section_number":"58.1-440","catch_line":"Accounting","url":"\/58.1-440\/","token":"58.1\/I\/3\/14\/58.1-440","metadata":false},"next_section":{"id":72207,"structure_id":13546,"section_number":"58.1-441","catch_line":"Reports by corporations","url":"\/58.1-441\/","token":"58.1\/I\/3\/14\/58.1-441","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-440.1\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapter 971<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. 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. That modification is as follows: in 2000, chapters 691<\/a> and 706<\/a>.<\/p>","references":false,"refers_to":[{"id":55735,"section_number":"58.1-2626","catch_line":"Annual state license tax on companies furnishing water, heat, light or power","order_by":null,"url":"\/58.1-2626\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"},{"id":77310,"section_number":"58.1-400.2","catch_line":"Taxation of electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers","order_by":null,"url":"\/58.1-400.2\/"}],"permalink":{"id":253725,"object_type":"law","relational_id":54651,"identifier":"58.1-440.1","token":"58.1\/I\/3\/14\/58.1-440.1","url":"\/58.1-440.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-440.1\/","token":"58.1\/I\/3\/14\/58.1-440.1","dublin_core":{"Title":"Accounting-deferred taxes","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-440.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

In the case of a pipeline distribution company, a gas utility, a gas supplier or an electric supplier, as defined in \u00a7 58.1-400.2<\/a>, that was subject to the tax imposed under \u00a7 58.1-2626<\/a> with respect to its gross receipts received during the year commencing January 1, 2000, and that on or after January 1, 2001, becomes subject to the corporate income tax pursuant to Article 10 (\u00a7 58.1-400<\/a> et seq.) of this chapter, net income shall be computed by taking into account the following adjustments:\n\t\tIn addition to the deductions for depreciation, amortization, or other cost recovery currently allowed by this Code, there shall be allowed deductions for the amortization of the Virginia tax basis<\/span> of assets<\/span> that are recoverable for financial accounting and\/or income tax purposes placed in service prior to the adjustment date<\/span>. For purposes of this section, (i) “Virginia tax basis<\/span>” means the aggregate adjusted book basis less the aggregate adjusted tax basis of such assets<\/span> as recorded on the company’s books of accounts as of the last day of the tax year immediately preceding the adjustment date<\/span> and (ii) “adjustment date<\/span>” means the first day of the tax year in which such pipeline distribution company, gas utility, gas supplier or electric supplier becomes subject to the tax imposed by \u00a7 58.1-400.2<\/a> A. The amortization of the Virginia tax basis<\/span> shall be computed using the straight-line method over a period of thirty years, beginning on the adjustment date<\/span>. Gain or loss on the disposition<\/span> or retirement of any such asset shall be computed using its adjusted federal tax basis, and the amortization of the Virginia tax basis<\/span> shall continue thereafter without adjustment. The Department<\/span> of Taxation shall promulgate regulations describing a reasonable method of allocating the Virginia tax basis<\/span> in the event that a portion of the operations of a pipeline distribution company, gas utility, gas supplier or electric supplier are separated, spun-off, transferred to a separate company or otherwise disaggregated. For gas suppliers, pipeline distribution companies or gas utilities which are required to file an income tax return for a short taxable year pursuant to subsection E of \u00a7 58.1-400.2<\/a>, a portion of the amortized Virginia tax basis<\/span> will be disallowed based on the proration in computing Virginia taxable income. Such portion will be recovered as a deduction in the first taxable year after which this deduction is no longer applicable.\n\t\tFor rate-making and accounting purposes, the State Corporation<\/span> Commission shall not require a pipeline distribution company or gas utility to amortize these deferred taxes over a period other than the thirty-year period prescribed herein, nor shall the State Corporation<\/span> Commission require the treatment of accelerated depreciation different from that allowed for federal income taxes.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nACCOUNTING-DEFERRED TAXES (\u00a7 58.1-440.1)\n\nIn the case of a pipeline distribution company, a gas utility, a gas supplier or\nan electric supplier, as defined in \u00a7 58.1-400.2, that was subject to the tax\nimposed under \u00a7 58.1-2626 with respect to its gross receipts received during\nthe year commencing January 1, 2000, and that on or after January 1, 2001,\nbecomes subject to the corporate income tax pursuant to Article 10 (\u00a7 58.1-400\net seq.) of this chapter, net income shall be computed by taking into account\nthe following adjustments:\n\t\tIn addition to the deductions for depreciation, amortization, or other cost\nrecovery currently allowed by this Code, there shall be allowed deductions for\nthe amortization of the Virginia tax basis of assets that are recoverable for\nfinancial accounting and\/or income tax purposes placed in service prior to the\nadjustment date. For purposes of this section, (i) “Virginia tax\nbasis” means the aggregate adjusted book basis less the aggregate adjusted\ntax basis of such assets as recorded on the company’s books of accounts as\nof the last day of the tax year immediately preceding the adjustment date and\n(ii) “adjustment date” means the first day of the tax year in which\nsuch pipeline distribution company, gas utility, gas supplier or electric\nsupplier becomes subject to the tax imposed by \u00a7 58.1-400.2 A. The amortization\nof the Virginia tax basis shall be computed using the straight-line method over\na period of thirty years, beginning on the adjustment date. Gain or loss on the\ndisposition or retirement of any such asset shall be computed using its adjusted\nfederal tax basis, and the amortization of the Virginia tax basis shall continue\nthereafter without adjustment. The Department of Taxation shall promulgate\nregulations describing a reasonable method of allocating the Virginia tax basis\nin the event that a portion of the operations of a pipeline distribution\ncompany, gas utility, gas supplier or electric supplier are separated, spun-off,\ntransferred to a separate company or otherwise disaggregated. For gas suppliers,\npipeline distribution companies or gas utilities which are required to file an\nincome tax return for a short taxable year pursuant to subsection E of \u00a7\n58.1-400.2, a portion of the amortized Virginia tax basis will be disallowed\nbased on the proration in computing Virginia taxable income. Such portion will\nbe recovered as a deduction in the first taxable year after which this deduction\nis no longer applicable.\n\t\tFor rate-making and accounting purposes, the State Corporation Commission\nshall not require a pipeline distribution company or gas utility to amortize\nthese deferred taxes over a period other than the thirty-year period prescribed\nherein, nor shall the State Corporation Commission require the treatment of\naccelerated depreciation different from that allowed for federal income taxes.\n\nHISTORY: 1999, c. 971; 2000, cc. 691, 706.","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}}