Virginia Date of Tax Conformity Now Changed

New legislation affects the preparation of 2003 tax returns! Virginia Gov. Mark Warner has signed S.B. 526, immediately effective, to roll forward Virginia's fixed date of conformity to federal tax law to December 31, 2003, with exceptions for special bonus depreciation and the carry back of net operating losses.

Virginia's previous fixed date of conformity with federal tax law was December 31, 2002. S.B. 526 replaces H.B. 107, which died without review on February 18 in the House Appropriations Committee.

Virginia now conforms to the 2003 Jobs and Growth Reconciliation Act (JGTRRA), which allows for an increase from $25,000 to $100,000 in the annual limitation for the Section 179 deduction and an increase in the phase-out threshold from $200,000 to $400,000.

All software companies that are members of the National Association of Computerized Tax Processors (NACTP) have been informed.

If you have any questions, e-mail VSCPA Government Affairs Director Erin Collins or call her at (800) 733-8272.