Federal Conformity (language only)
Item 3-5.16 #1s
Item 3-5.16 #1s | | | |
| Adjustments and Modifications to Tax Collections |
| Conformity to Internal Revenue Code |
Language
Page 323, strike lines 37 through 43, and insert:
"Notwithstanding the provisions of §58.1-301, Code of Virginia, any reference in Chapter 3, Title 58.1, Code of Virginia, to the laws of the United States relating to federal income taxes shall mean the provisions of the Internal Revenue Code of 1954, and amendments thereto, and other provisions of the laws of the United States relating to federal income taxes, as they existed on January 22, 2010, except for:
1. The special depreciation allowance for certain property provided for under §§ 168(k), 168(l), 168(m), 1400L, and 1400N of the Internal Revenue Code;
2. The carry-back of certain net operating losses for five years under § 172(b)(1)(H) of the Internal Revenue Code;
3. The original issue discount on applicable high yield discount obligations under § 163 (e)(5)(F); and
4. The deferral of certain income under § 108 (i) of the Internal Revenue Code, except that two-thirds of any income derived in taxable year 2009 from the cancellation of indebtedness income which has been deferred in taxable year 2009 from federal taxable income pursuant to § 108 (i) of the Internal Revenue Code may be subtracted from 2009 taxable income and deferred as follows: one-third of such income may be deferred until taxable year 2010 and one-third of such income may be deferred until taxable year 2011."
Explanation
(This amendment conforms Appropriation Act language with SB 545, as passed by the Senate, and allows taxpayers to take a deduction on their 2009 tax returns for charitable contributions made by February 28, 2010, for the relief of victims of the Haiti earthquake.)