Income tax, corporate; taxable income, net operating loss.
Sponsored By: Vivian E. Watts (Democratic)
Passed House
Summary
Corporate income tax; taxable income; net operating loss. Provides that, beginning in taxable year 2027, for purposes of calculating the Virginia taxable income of corporations, federal income means any income taxable to the corporation under federal law for such year excluding net operating loss deductions under federal tax law. The bill also creates a Virginia corporate income tax net operating loss deduction, beginning in taxable year 2027, in an amount equal to the aggregate Virginia net operating losses for such taxable year, plus any transitional net operating loss deduction, pursuant to a calculation in the bill, and subject to certain other adjustments in the bill. The bill also prohibits a corporation's Virginia taxable income, after all other adjustments, allocation, and apportionment, from being reduced below zero by a Virginia net operating loss deduction. The bill also includes particular procedures for corporate income tax returns prepared on a consolidated or a combined basis. Finally, the bill directs the Department of Taxation to issue preliminary guidelines implementing the provisions of the bill and to cooperate with and seek counsel from interested stakeholders before issuing its final guidelines. The bill has a delayed effective date of January 1, 2027.
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Bill Overview
No Economic Impacts Identified for this Bill
Sponsors & Cosponsors
Sponsor
Vivian E. Watts
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
Continued from last session
7/21/2026SenateContinued to 2027 in Finance and Appropriations (14-Y 1-N)
3/3/2026SenateReferred to Committee on Finance and Appropriations
2/11/2026SenateConstitutional reading dispensed (on 1st reading)
2/11/2026SenateRead third time and passed House (96-Y 1-N 1-A)
2/10/2026HouseMoved from Uncontested Calendar to Regular Calendar
2/10/2026HouseRead second time and engrossed
2/9/2026HouseRead first time
2/6/2026HouseReported from Finance (22-Y 0-N)
2/4/2026HouseSubcommittee recommends reporting (9-Y 0-N)
2/2/2026HouseFiscal Impact statement From TAX (2/1/2026 11:34 pm)
2/1/2026HouseReferred to Committee on Finance
1/13/2026HousePrefiled and ordered printed; Offered 01-14-2026 26102351D
1/13/2026House
Bill Text
Introduced
1/13/2026
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