SECTION 58.1-301. Conformity to Internal Revenue Code  

A. Any term used in this chapter shall have the same meaning as when used in a comparable context in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required.

B. Any reference in this chapter to the laws of the United States relating to federal income taxes shall mean the provisions of the Internal Revenue Code of 1954, and amendments thereto, and other provisions of the laws of the United States relating to federal income taxes, as they existed on December 31, 2019, 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 obligations under § 163(e)(5)(F) of the Internal Revenue Code;

4. The deferral of certain income under § 108(i) of the Internal Revenue Code. For Virginia income tax purposes, income from the discharge of indebtedness in connection with the reacquisition of an "applicable debt instrument" (as defined under § 108(i) of the Internal Revenue Code) reacquired in the taxable year shall be fully included in the taxpayer's Virginia taxable income for the taxable year, unless the taxpayer elects to include such income in the taxpayer's Virginia taxable income ratably over a three-taxable-year period beginning with taxable year 2009 for transactions completed in taxable year 2009, or over a three-taxable-year period beginning with taxable year 2010 for transactions completed in taxable year 2010 on or before April 21, 2010. For purposes of such election, all other provisions of § 108(i) of the Internal Revenue Code shall apply mutatis mutandis. No other deferral shall be allowed for income from the discharge of indebtedness in connection with the reacquisition of an "applicable debt instrument";

5. For taxable years beginning on and after January 1, 2019, the provisions of § 11046 of the federal Tax Cuts and Jobs Act, P.L. 115-97 (2017), related to the suspension of the overall limitation on itemized deductions; and

6. The provisions of § 103 of Division Q of the federal Further Consolidated Appropriations Act, 2020, P.L. 116-94 (2019), related to the reduction in the medical expense deduction floor.

The Department of Taxation is hereby authorized to develop procedures or guidelines for implementation of the provisions of this section, which procedures or guidelines shall be exempt from the provisions of the Administrative 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. 2.2-4000 ; 2003, cc. 2.2-4000 , 2.2-4000 ; 2004, c. 2.2-4000 ; 2005, cc. 2.2-4000 , 2.2-4000 ; 2006, cc. 2.2-4000 , 2.2-4000 ; 2007, cc. 2.2-4000 , 2.2-4000 ; 2008, cc. 2.2-4000 , 2.2-4000 ; 2009, cc. 2.2-4000 , 2.2-4000 , 2.2-4000 ; 2010, cc. 2.2-4000 , 2.2-4000 ; 2011, cc. 2.2-4000 , 2.2-4000 , 2.2-4000 ; 2012, cc. 2.2-4000 , 2.2-4000 , 2.2-4000 , 2.2-4000 ; 2013, cc. 2.2-4000 , 2.2-4000 ; 2014, c. 2.2-4000 ; 2014, cc. 2.2-4000 , 2.2-4000 ; 2015, cc. 2.2-4000 , 2.2-4000 ; 2016, cc. 2.2-4000 , 2.2-4000 ; 2017, cc. 2.2-4000 , 2.2-4000 ; 2018, cc. 2.2-4000 , 2.2-4000 ; 2019, cc. 2.2-4000 , 2.2-4000 ; 2020, cc. 2.2-4000 , 2.2-4000 .