SB 1426 Virginia Senate · 2025 Regular Session

Income tax, corporate and state; defines "entire net income."

Summary

Corporate income tax; Virginia taxable income; definitions. Defines, for purposes of income tax, "entire net income" as the total net income from all sources that a taxpayer is required to report for purposes of the federal income tax. The bill further defines "net operating loss" as the excess of any allowable income tax deductions over the gross income used in computing entire net income.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 16, 2025 Last action Feb 5, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Finance and Appropriations Subcommittee Substitute · 4 edits

MODERATE

The bill was amended from its original introduction to a committee substitute version. The substantive content was completely replaced with a new directive requiring the Department of Taxation to convene a work group to study net operating loss treatment in Virginia compared to other states and make recommendations for simplification.

Scope change

The bill's scope changed from amending the corporate income tax conformity statute to establishing a temporary work group study on net operating loss treatment.

REQUIREMENT

Removed the original text amending § 58.1-301 of the Code of Virginia, which established conformity rules with the Internal Revenue Code for taxable years beginning on or after January 1, 2022.

Added a new requirement for the Department of Taxation to convene a work group of tax practitioners to analyze net operating loss treatment in Virginia compared to other states.

TIMELINE

Set specific deadlines for the work group to complete meetings by October 1, 2025, and submit a report by November 1, 2025.

SCOPE

Changed the bill's purpose from permanent tax law amendments to a temporary study and recommendation process regarding net operating loss treatment.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 16, 2025

Committee

Referred to Committee on Finance and Appropriations

upper

Jan 16, 2025

Introduced

Presented and ordered printed 25104676D

upper

1 primary · 0 co-sponsors