Language Page 399, after line 40, insert:"Notwithstanding the provisions of § 58.1-301, Code of Virginia, the amount of the deduction allowed for domestic production activities pursuant to § 199 of the Internal Revenue Code for taxable years beginning on or after January 1, 2012 for Virginia income tax purposes shall be one-third of the amount deducted pursuant to § 199 of the Internal Revenue Code for federal income tax purposes."
Explanation(This amendment reduces the domestic production disregard provided pursuant to Virginia's partial conformity with Section 199 of the Internal Revenue Code. In fiscal year 2012, Virginia allows a 6 percent disregard. House Bill 30 as introduced would fully conform to the federally allowed 9 percent disregard in fiscal year 2013 and reduce the disregard back to 6 percent in fiscal year 2014. This amendment would scale back the disregard to the 2010 level of 3 percent, generating $20.0 million in additional general fund revenue in fiscal year 2013, and $10.0 million in fiscal year 2014.)