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VA HB977

Bill

Official Source

Status

Introduced

1/13/2026

Primary Sponsor

Vivian Watts

Click for details

Origin

House of Delegates

2026 Regular Regular Session

AI Summary

  • Updates Virginia's tax code conformity date from January 1, 2023 to January 1, 2026 for automatic adoption of federal Internal Revenue Code changes
  • Decouples from several provisions of the federal Budget Reconciliation Act (P.L. 119-21), including expanded research and experimental expenditure expensing, increased Section 179 depreciation limits, and special bonus depreciation under § 168(n)
  • Reinstates the limitation on itemized deductions as it existed before the 2025 federal Budget Reconciliation Act, rejecting the federal suspension of this limitation
  • Makes the elective pass-through entity tax (PTET) at the 5.75% rate permanent by removing the January 1, 2026/2027 sunset dates
  • Modifies the business interest deduction for amounts disallowed under federal § 163(j), reducing the allowable deduction from 50% to 40% for taxable years beginning on and after January 1, 2025

Legislative Description

Tax laws of the Commonwealth; conformity to the Internal Revenue Code.

Last Action

Left in Committee Appropriations

2/18/2026

Committee Referrals

Appropriations1/28/2026
Finance1/13/2026

Full Bill Text

No bill text available