# Virginia HB958: Income tax, corporate; taxable income, net operating loss.

Virginia HB958, Income tax, corporate; taxable income, net operating loss., is a 2027 Regular Session House bill sponsored by Vivian E. Watts (Democratic); status passed house, last action 2026-07-21 (Continued from last session) (as of 2026-10-13).

- Canonical: https://policyrisk.com/state-bill/VA-HB958-2027
- As of: 2026-10-13
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia HB958
- State: Virginia
- Session: 2027 Regular Session
- Title: Income tax, corporate; taxable income, net operating loss.
- Status: passed house
- Chamber: House
- Introduced: 2026-01-13
- Last action: 2026-07-21, Continued from last session
- Sponsor: Vivian E. Watts (Democratic)
- Cosponsors: 0
- Subjects: Finance and Appropriations
- Touches household money: no
- Economic provisions PRIA read: 0

## 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.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Vivian E. Watts (Democratic), House

## Actions (13)

- 2026-07-21: Continued from last session (Senate)
- 2026-03-03: Continued to 2027 in Finance and Appropriations (14-Y 1-N) (Senate)
- 2026-02-11: Referred to Committee on Finance and Appropriations (Senate)
- 2026-02-11: Constitutional reading dispensed (on 1st reading) (Senate)
- 2026-02-10: Read third time and passed House (96-Y 1-N 1-A) (House)
- 2026-02-10: Moved from Uncontested Calendar to Regular Calendar (House)
- 2026-02-09: Read second time and engrossed (House)
- 2026-02-06: Read first time (House)
- 2026-02-04: Reported from Finance (22-Y 0-N) (House)
- 2026-02-02: Subcommittee recommends reporting (9-Y 0-N) (House)
- 2026-02-01: Fiscal Impact statement From TAX (2/1/2026 11:34 pm) (House)
- 2026-01-13: Referred to Committee on Finance (House)
- 2026-01-13: Prefiled and ordered printed; Offered 01-14-2026 26102351D (House)

## Bill text

- Introduced, 2026-01-13: [HTML](https://lis.blob.core.windows.net/files/1230208.HTML), [PDF](https://lis.blob.core.windows.net/files/1230207.PDF)

## Related bills

- SB844: Licensed clinical psychologists; prescriptive authority, report. (in committee)
- HB1535: Individuals with developmental or intellectual disabilities; admissibility of statements. (introduced)
- HB1534: School service providers; deletion of student and family personal information. (introduced)
- SB843: Data centers; state permitting, local approval, moratorium, sunset. (in committee)
- SB842: High school student athletes; eligibility, enrollment. (in committee)
- SB840: Corrections, Director of the Department of; placement of inmates, Red Onion State Prison. (in committee)

## Sources
- [Introduced (HTML)](https://lis.blob.core.windows.net/files/1230208.HTML)
- [Introduced (PDF)](https://lis.blob.core.windows.net/files/1230207.PDF)

## Related
- [SB844: Licensed clinical psychologists; prescriptive authority, report.](https://policyrisk.com/state-bill/VA-SB844-2027)
- [HB1535: Individuals with developmental or intellectual disabilities; admissibility of s…](https://policyrisk.com/state-bill/VA-HB1535-2027)
- [HB1534: School service providers; deletion of student and family personal information.](https://policyrisk.com/state-bill/VA-HB1534-2027)
- [SB843: Data centers; state permitting, local approval, moratorium, sunset.](https://policyrisk.com/state-bill/VA-SB843-2027)
- [SB842: High school student athletes; eligibility, enrollment.](https://policyrisk.com/state-bill/VA-SB842-2027)
- [SB840: Corrections, Director of the Department of; placement of inmates, Red Onion Sta…](https://policyrisk.com/state-bill/VA-SB840-2027)
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Source: PRIA, https://policyrisk.com/state-bill/VA-HB958-2027 (as of 2026-10-13).