Virginia Gov. Terry McAuliffe signed HB 402 on Feb. 5, advancing Virginia’s fixed date of conformity to the U.S. Internal Revenue Code (IRC) from Dec. 31, 2014, to Dec. 31, 2015.
The bill conforms Virginia’s tax code with the Protecting Americans From Tax Hikes (PATH) Act of 2015, which extended a number of expiring federal provisions, including:
- The increased expensing limitations and treatment of certain real property as IRC §179 property
- Several provisions related to the depreciation and expensing of certain types of property
- The above-the-line deduction for certain expenses of elementary and secondary school teachers
- The deduction for state and local general sales taxes
- The above-the-line deduction for qualified tuition and related expenses
- The exclusion for discharge of indebtedness on a principal residence
- The deductibility of interest on mortgage insurance premiums as qualified residence interest
- The federal income tax treatment of certain income related to S corporations
- The federal income tax treatment of certain foreign income
- The enhanced Earned Income Tax Credit (EITC)
Because the bill contained an emergency clause, it went into effect with McAuliffe’s signature.