Income tax, corporate; taxable income, net operating loss.

Summary

Starting in taxable year 2027, Virginia will base a corporation's taxable income on its federal taxable income but will strip out federal net operating loss (NOL) deductions. The law also creates a Virginia NOL deduction, limits that deduction so taxable income cannot go below zero, and sets special rules for consolidated and combined returns. The Department of Taxation must issue guidelines before the changes take effect.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

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