HB 958: Income tax, corporate; taxable income, net operating loss.

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

Corporate income tax; taxable income; net operating loss. Provides that, beginning in taxable year 2027, for purposes of calculating the Virginia taxable income of corporations, federal income means any income taxable to the corporation under federal law for such year excluding net operating loss deductions under federal tax law. The bill also creates a Virginia corporate income tax net operating loss deduction, beginning in taxable year 2027, in an amount equal to the aggregate Virginia net operating losses for such taxable year, plus any transitional net operating loss deduction, pursuant to a calculation in the bill, and subject to certain other adjustments in the bill. The bill also prohibits a corporation's Virginia taxable income, after all other adjustments, allocation, and apportionment, from being reduced below zero by a Virginia net operating loss deduction. The bill also includes particular procedures for corporate income tax returns prepared on a consolidated or a combined basis. Finally, the bill directs the Department of Taxation to issue preliminary guidelines implementing the provisions of the bill and to cooperate with and seek counsel from interested stakeholders before issuing its final guidelines. The bill has a delayed effective date of January 1, 2027.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. March 3, 2026Continued to next session in Finance and Appropriations (14-Y 1-N)
2. February 11, 2026Referred to Committee on Finance and Appropriations
3. February 11, 2026Constitutional reading dispensed (on 1st reading)
4. February 10, 2026Read third time and passed House (96-Y 1-N 1-A)
5. February 10, 2026Moved from Uncontested Calendar to Regular Calendar
6. February 9, 2026Read second time and engrossed
7. February 6, 2026Read first time
8. February 4, 2026Reported from Finance (22-Y 0-N)
9. February 2, 2026Subcommittee recommends reporting (9-Y 0-N)
10. February 1, 2026Fiscal Impact statement From TAX (2/1/2026 11:34 pm)
11. January 13, 2026Referred to Committee on Finance
12. January 13, 2026Prefiled and ordered printed; Offered 01-14-2026 26102351D