RICHMOND, VA – Governor Timothy M. Kaine today announced that he has signed legislation that will allow Virginians to use certain federal tax deductions. It was the first bill from the 2008 General Assembly session he has signed into law, and takes effect immediately.
“These measures will protect families of the Virginia Tech shooting victims and will create tax breaks for small businesses and many homeowners,” Governor Kaine said. “The bill provides tax relief for people who deserve it and need it.”
House Bill 912, introduced by Delegate Harry Purkey (R – Virginia Beach) incorporates changes made to the federal tax code over the last year into Virginia law.
Virginia’s conformity to the Internal Revenue Code was previously based on December 31, 2006 regulations. Since then, Congress has enacted three significant measures that would affect income taxation in Virginia:
- House Resolution 4118 created an exemption for money received from Virginia Tech University out of amounts transferred from the Hokie Spirit Memorial Fund.
- The Small Business and Work Opportunity Tax Act of 2007 provided several tax breaks for small businesses.
- The Tax Mortgage Forgiveness Debt Relief Act of 2007 created an exception to current law so that certain homeowners do not have to pay taxes for debt forgiveness on their troubled home loans. The bill also extended a provision allowing homeowners to deduct mortgage insurance payments from their taxable income and provided other forms of tax relief.
The passage and signing of House Bill 912 makes these items deductible under Virginia law.
