58.1-301 - Conformity to Internal Revenue Code.
§ 58.1-301. Conformity to Internal Revenue Code.
A. Any term used in this chapter shall have the same meaning as when used ina comparable context in the laws of the United States relating to federalincome taxes, unless a different meaning is clearly required.
B. Any reference in this chapter to the laws of the United States relating tofederal income taxes shall mean the provisions of the Internal Revenue Codeof 1954, and amendments thereto, and other provisions of the laws of theUnited States relating to federal income taxes, as they existed on January22, 2010, except for:
1. The special depreciation allowance for certain property provided for under§§ 168(k), 168(l), 168(m), 1400L, and 1400N of the Internal Revenue Code;
2. The carry-back of certain net operating losses for five years under §172(b)(1)(H) of the Internal Revenue Code;
3. The original issue discount on applicable high yield discount obligationsunder § 163 (e)(5)(F) of the Internal Revenue Code;
4. The deferral of certain income under § 108 (i) of the Internal RevenueCode. For Virginia income tax purposes, income from the discharge ofindebtedness in connection with the reacquisition of an "applicable debtinstrument" (as defined under § 108 (i) of the Internal Revenue Code)reacquired in taxable year 2009 shall be fully included in the taxpayer'sVirginia taxable income for taxable year 2009, unless the taxpayer elects toinclude such income in the taxpayer's Virginia taxable income ratably over a3-taxable-year period beginning with taxable year 2009. For purposes of suchelection, all other provisions of § 108 (i) shall apply mutatis mutandis. Noother deferral shall be allowed for income from the discharge of indebtednessin connection with the reacquisition of an "applicable debt instrument";
5. The amount of the deduction allowed for domestic production activitiespursuant to § 199 of the Internal Revenue Code for taxable years beginning onor after January 1, 2010. For Virginia income tax purposes, two-thirds ofthe amount deducted pursuant to § 199 of the Internal Revenue Code forfederal income tax purposes during the taxable year may be deducted forVirginia income tax purposes for taxable years beginning on and after January1, 2010;
6. For taxable years beginning on or after January 1, 2010, the provisions of§ 32(b)(3) of the Internal Revenue Code relating to the earned income taxcredit; and
7. For taxable years beginning on or after January 1, 2010, the deduction forqualified motor vehicle taxes pursuant to § 164(a)(6) of the Internal RevenueCode.
The Department of Taxation is hereby authorized to develop procedures orguidelines for implementation of the provisions of this section, whichprocedures or guidelines shall be exempt from the provisions of theAdministrative Process Act (§ 2.2-4000 et seq.).
(Code 1950, § 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.)