SB 664: Internal Revenue Code and state taxation; conformity of tax laws of the Commonwealth.

Official summary

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

Conformity of the tax laws of the Commonwealth to the Internal Revenue Code and state taxation. Provides that Virginia will deconform from certain provisions of the Internal Revenue Code for state income tax purposes, including the suspension of the overall limitation on itemized deductions, the bonus depreciation allowance for certain assets, the limitation on the election to expense certain depreciable business assets, the deduction for domestic research or experimental expenditures, and the modification of the limitation on business interest. The bill also provides that Virginia will not conform to (i) any amendment of the Internal Revenue Code enacted on or after January 1, 2026, with a projected impact that would increase or decrease general fund revenues by any amount in the fiscal year in which the amendment was enacted or any of the succeeding four fiscal years and (ii) all amendments enacted on or after January 1, 2026, if the cumulative projected impact of such amendments would increase or decrease general fund revenues by any amount in the fiscal year in which the amendments were enacted or any of the succeeding four fiscal years, but Virginia will still conform to any federal tax changes that the General Assembly subsequently adopts and to any federal tax extenders. Under current law, Virginia conforms to federal tax changes as soon as they are enacted by Congress, with certain exceptions. However, the twelfth enactment of the 2025 Appropriation Act temporarily paused rolling conformity generally for any federal tax changes enacted on or after January 1, 2025, but before January 1, 2027, and thereby still required Virginia to conform to any federal tax changes that the General Assembly subsequently adopts and to any federal tax extenders.

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. February 17, 2026Left in Finance and Appropriations
2. January 31, 2026Fiscal Impact statement From TAX (1/31/2026 1:49 pm)
3. January 14, 2026Referred to Committee on Finance and Appropriations
4. January 14, 2026Prefiled and ordered printed; Offered 01-14-2026 26101004D