Business & Tech

Governor Signs Tax Conformity Bill

Governor Northam has signed SB 1146 and HB 1935 which conforms Virginia's tax code to federal tax provisions from the taxable year 2020.

Press Release Desk, News Partner
(Mount Vernon-Lee Chamber Of Commerce)

Press release from Mount Vernon-Lee Chamber Of Commerce:

03/22/2021

ShareTweetReturn to ListingGovernor Signs Tax Conformity Bill 03/22/2021 12:09 PM

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Governor Northam has signed SB 1146 and HB 1935 which conforms Virginia’s tax code to federal tax provisions from the taxable year 2020. Because of the bill’s emergency clause, conformity goes into effect immediately and is retroactive.

Businesses can exclude the full
forgiven loan amount as well as deduct up to $100,000 of business expenses
related to the PPP or Rebuild Virginia Loan. The $100,000 cap will allow full
deductibility for 80% of Virginia Small Businesses that received a PPP loan.
Rebuild Virginia grants will receive the same tax treatment.

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Here are the main components of
the legislation:

  • Excludes
    PPP loan forgiveness amount from income

  • Provides
    up to $100,000 in deductions for business expenses paid with PPP money

  • Provides
    same tax treatment for Rebuild Virginia grants

  • Is
    now in effect and is retroactive to provide timely filing for individuals and
    businesses

    The Virginia Department of Taxation released Tax
    Bulletin 21-4     containing
    important information about Virginia income tax returns.

    https://www.tax.virginia.gov/sites/default/files/inline-files/tb-21-4-irc-conformity-advanced.pdf?utm_content=february_2019&utm_medium=email&utm_name=2019_secondq_interestrates&utm_source=govdelivery&utm_term=tax_preparer

    • This press release was produced by the Mount Vernon-Lee Chamber Of Commerce. The views expressed are the author's own.

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