United States

West Virginia: Corporation Net Income Tax Conformity Bill Signed Into Law

Feb 26, 2018
From KPMG TaxWatch

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West Virginia’s corporation net income tax conformity bill, House Bill 4135, was signed into law on February 21, 2018. House Bill 4135 provides that “all amendments made to the laws of the United States after December 31, 2016, but prior to January 1, 2018, shall be given effect in determining the taxes imposed under [the corporation net income tax article] to the same extent those changes are allowed for federal income tax purposes, whether the changes are retroactive or prospective.” However, “no amendments to the laws of the United States made on or after January 1, 2018, shall be given any effect.” In terms of effective dates, House Bill 4135 provides that “the amendments to this section enacted in the year 2018 are retroactive to the extent allowable under federal income tax law.” Unlike certain states’ passed or proposed conformity bills, the West Virginia conformity legislation does not specifically address any changes made as a result of federal tax reform, such as GILTI, interest expense and NOL limitations, etc. West Virginia has historically adopted bonus depreciation and there are no modifications in House Bill 4135 to decouple from the 100 percent expensing provisions contained in H.R. 1. Please stay tuned to TWIST for future conformity updates.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.