Language Page 517, after line 43, insert:"§ 3-5.20 DEDUCTION FOR NET OPERATING LOSS CARRYBACKNotwithstanding § 58.1-301 and § 58.1-394.1, Code of Virginia, or any other provision of law, for taxable years beginning on or after January 1, 2015, no deduction shall be authorized for the carryback of net operating losses for any individual or pass through entity filing a tax return in the Commonwealth."
Explanation(This amendment eliminates the net operating loss carryback provision that allows companies with an unprofitable year to apply losses to their prior year tax returns and generate refunds. This practice is eliminated to generate additional revenue to be used for core government services, and is estimated at $10.0 million in the second year. A companion amendment to Item 357 would provide $10,696,471 in the second year from the general fund to level-fund Agricultural BMP Cost Share and Technical Assistance Programs of the Soil and Water Conservation Districts.)