Governor Northam has signed the Tax Conformity legislation into law. Due to the emergency clause, the legislation goes into effect immediately and is retroactive. This means that it will not be necessary to file an extension on your taxes to accommodate the typical July legislation start date in order to benefit from this legislation.
Most importantly, the legislation conforms to the federal tax exemption for Paycheck Protection Program (PPP) loan forgiveness and certain funding received under the Economic Injury Disaster Loan (EIDL) program. The bill permits a deduction for Taxable Year 2020 of up to $100,000 for business expenses funded by forgiven PPP loan proceeds.
- View the full details from the Virginia Department of Taxation here.