VA HB958

Eliminates the federal net operating loss (NOL) deduction under IRC § 172 from Virginia corporate taxable income calculations for taxable years beginning on and after January 1, 2027

Creates a new Virginia-specific net operating loss system allowing corporations to carry forward Virginia NOLs for up to 20 years following the year of loss

Limits the Virginia NOL deduction to 80% of Virginia taxable income for the year in which the deduction is claimed

Defines Virginia net operating loss as the amount by which adjusted federal deductions and Virginia deductions exceed gross income after required Virginia modifications and allocations

Amends § 58.1-402 of the Code of Virginia to add a new subsection J establishing the Virginia NOL framework, decoupling state treatment from federal NOL provisions