58.1-403 - Additional modifications to determine Virginia taxable income for certain corporations.

§ 58.1-403. Additional modifications to determine Virginia taxable income forcertain corporations.

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

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

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

3. Where such railway company would have been allowed to deduct an amount asa net operating loss carryover or net capital loss carryover in determiningtaxable income for a taxable year beginning after December 31, 1978, but forthe fact that such loss, or a portion of such loss, had been carried back indetermining taxable income for a taxable year beginning prior to January 1,1979, there shall be added to federal taxable income any amount which wasactually deducted in determining taxable income as a net operating losscarryover or net capital loss carryover and there shall be subtracted fromfederal taxable income the amount which could have been deducted as a netoperating loss carryover or net capital loss carryover in arriving at taxableincome but for the fact that such loss, or a portion of such loss, had beencarried back for federal purposes.

4., 5. [Repealed.]

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

7. Where such telecommunications company would have been allowed to deduct anamount as a net operating loss carryover or net capital loss carryover indetermining 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 beencarried back in determining taxable income for a taxable year beginning priorto January 1, 1989, there shall be added to federal taxable income any amountwhich was actually deducted in determining taxable income as a net operatingloss carryover or net capital loss carryover and there shall be subtractedfrom federal taxable income the amount which could have been deducted as anet operating loss carryover or net capital loss in arriving at taxableincome but for the fact that such loss, or a portion of such loss, had beencarried back for federal purposes.

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

9. Where such gas supplier, pipeline distribution company or gas utilitywould have been allowed to deduct an amount as a net operating loss carryoveror net capital loss carryover in determining taxable income for a taxableyear beginning after December 31, 2000, but for the fact that such loss, or aportion of such loss, had been carried back in determining taxable income fora taxable year beginning prior to January 1, 2001, there shall be added tofederal taxable income any amount that was actually deducted in determiningtaxable income as a net operating loss carryover or net capital losscarryover and there shall be subtracted from federal taxable income theamount that could have been deducted as a net operating loss carryover or netcapital 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.

(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.)