                                 CODE OF VIRGINIA

ADDITIONAL MODIFICATIONS TO DETERMINE VIRGINIA TAXABLE INCOME FOR CERTAIN
CORPORATIONS (§ 58.1-403)

In addition to the modifications set forth in § 58.1-402 for determining
Virginia taxable income for corporations generally, the adjustments set forth in
subdivision 1 shall be made to the federal taxable income for savings
institutions and as set forth in subdivisions 2 and 3 for railway companies, as
set forth in subdivisions 6 and 7 for telecommunications companies, and as set
forth in subdivisions 8 and 9 for gas suppliers, pipeline distribution companies
and gas utilities.

1. There shall be added the deduction allowed for bad debts. The percentage
which would have been used in determining the bad debt deduction under the
Internal Revenue Code of 1954, as in effect immediately prior to the enactment
of the Tax Reform Act of 1986 (Public Law 99-514), shall then be applied to
federal taxable income as adjusted under the provisions of &#xA7; 58.1-402 and
the amount so determined subtracted therefrom.

2. There shall be added to federal taxable income any amount which was deducted
in determining taxable income as a net operating loss carryover from any taxable
year beginning on or before December 31, 1978.

3. Where such railway company would have been allowed to deduct an amount as a
net operating loss carryover or net capital loss carryover in determining
taxable income for a taxable year beginning after December 31, 1978, but for the
fact that such loss, or a portion of such loss, had been carried back in
determining taxable income for a taxable year beginning prior to January 1,
1979, there shall be added to federal taxable income any amount which was
actually deducted in determining taxable income as a net operating loss
carryover or net capital loss carryover and there shall be subtracted from
federal taxable income the amount which could have been deducted as a net
operating loss carryover or net capital loss carryover in arriving at taxable
income but for the fact that such loss, or a portion of such loss, had been
carried back for federal purposes.
			4., 5. [Repealed.]

6. There shall be added to federal taxable income any amount which was deducted
in determining taxable income as a net operating loss carryover from any taxable
year beginning on or before December 31, 1988.

7. Where such telecommunications company would have been allowed to deduct an
amount as a net operating loss carryover or net capital loss carryover in
determining taxable income for a taxable year beginning after December 31, 1988,
but for the fact that such loss, or a portion of such loss, had been carried
back in determining taxable income for a taxable year beginning prior to January
1, 1989, there shall be added to federal taxable income any amount which was
actually deducted in determining taxable income as a net operating loss
carryover or net capital loss carryover and there shall be subtracted from
federal taxable income the amount which could have been deducted as a net
operating loss carryover or net capital loss in arriving at taxable income but
for the fact that such loss, or a portion of such loss, had been carried back
for federal purposes.

8. There shall be added to federal taxable income any amount that was deducted
in determining taxable income as a net operating loss carryover from any taxable
year beginning on or before December 31, 2000.

9. Where such gas supplier, pipeline distribution company or gas utility would
have been allowed to deduct an amount as a net operating loss carryover or net
capital loss carryover in determining taxable income for a taxable year
beginning after December 31, 2000, but for the fact that such loss, or a portion
of such loss, had been carried back in determining taxable income for a taxable
year beginning prior to January 1, 2001, there shall be added to federal taxable
income any amount that was actually deducted in determining taxable income as a
net operating loss carryover or net capital loss carryover and there shall be
subtracted from federal taxable income the amount that could have been deducted
as a net operating loss carryover or net capital loss in arriving at taxable
income but for the fact that such loss, or a portion of such loss, had been
carried back for federal purposes.

HISTORY: Code 1950, §§ 58-151.032:1, 58-151.032:2; 1972, c. 310; 1973, c. 198;
1978, c. 784; 1979, c. 226; 1981, c. 402; 1982, c. 633; 1984, cc. 672, 675;
1985, c. 221; 1987, c. 614; 1988, c. 899; 1996, c. 77; 2000, cc. 691, 706.