Mar 05, 2018
From KPMG TaxWatch
Two companion conformity bills, Virginia House Bill 154 and Senate Bill 230, were enacted on February 23rd and February 22nd respectively. These bills advance Virginia’s date of conformity to the Internal Revenue Code from December 31, 2016 to February 9, 2018. The bills are “emergency bills” that are deemed in force from passage. With respect to Public Law 115-97, known as the “Tax Cuts and Jobs Act,” the bills generally adopts only the provisions of that Act that affect the computation of federal adjusted gross income for individuals or federal taxable income for corporations for the 2017 tax year. Per the bills’ fiscal impact statements, for corporations, this includes certain provisions of the Tax Cuts and Jobs Act that were effective for transactions or amounts paid after the date of enactment, including the denial of a deduction for settlements subject to a nondisclosure agreement paid in connection with sexual harassment, expansion of the provision relating to the non-deductibility of fines and penalties, repeal of the deduction for local lobbying expenses and revisions to the treatment of contributions to capital. All provisions of the Tax Cuts and Jobs Act that are effective for the 2018 tax year are not adopted for Virginia purposes and Virginia continues to decouple from federal bonus depreciation. Presumably, the Commonwealth will address the 2018 changes in its next conformity bill. 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.