Language Page 526, after line 38, insert:"§ 3-5.22 DEDUCTION FOR DISALLOWED BUSINESS INTEREST DEDUCTIONSNotwithstanding any other provision of law, in computing Virginia taxable income pursuant to § 58.1-322 of the Code of Virginia, to the extent included in federal adjusted income, there shall be subtracted, for taxable years beginning on and after January 1, 2020, 60 percent of business interest disallowed as a deduction pursuant to § 163(j) of the Internal Revenue Code. "Business interest" means the same as that term is defined under § 163(j) of the Internal Revenue Code."
Page 526, after line 38, insert:
"§ 3-5.22 DEDUCTION FOR DISALLOWED BUSINESS INTEREST DEDUCTIONS
Notwithstanding any other provision of law, in computing Virginia taxable income pursuant to § 58.1-322 of the Code of Virginia, to the extent included in federal adjusted income, there shall be subtracted, for taxable years beginning on and after January 1, 2020, 60 percent of business interest disallowed as a deduction pursuant to § 163(j) of the Internal Revenue Code. "Business interest" means the same as that term is defined under § 163(j) of the Internal Revenue Code."
Explanation
(This amendment would provide an individual income tax deduction equal to 60 percent of business interest deductions disallowed under the provisions of the Tax Cuts and Jobs Act of 2017 (§ 163(j) of the Internal Revenue Code). For purposes of computing Virginia taxable income, current law provides for a corporate and individual income tax deduction equal to 20 percent of such disallowed interest deductions. This amendment assumes a reduction in general fund revenues equal to $43.6 million in FY 2021 and $31.2 million in FY 2022.)