Virginia Gov. Terry McAuliffe signed HB 1085 into law Wednesday, extending the enhanced Earned Income Tax Credit (EITC) for low-income taxpayers through 2017.
Before the passage of the bill, conformity with the federal EITC expired Dec. 31, 2012. Because the bill contains an emergency clause, it went into effect with McAuliffe’s signature.
The bill’s scope is limited to the EITC because of uncertainty with how the U.S. Internal Revenue Service’s (IRS) guidance regarding the Defense of Marriage Act (DOMA) would factor into the conformity statute. The Virginia Department of Taxation (TAX) did not identify any additional federal tax law changes that would cause Virginia to be out of alignment with the U.S. Internal Revenue Code (IRC) by maintaining the conformity date at the current Jan. 2, 2013.
The bill passed the House on Jan. 21 and the Senate on Jan. 23. Both votes were unanimous. A companion bill, SB 288, passed the Senate with a substitute Jan. 17 and the House Finance Committee on Wednesday.
The VSCPA officially supported both bills.