Virginia's Rolling Conformity to the Internal Revenue Code Replaced with a Fixed Date of December 31, 2025
During the 2026 General Assembly Session, the 2026 Amendments to the 2025 Appropriation Act replaced Virginia’s rolling conformity to the IRC with a fixed conformity date of December 31, 2025.
About the legislation
- Virginia will continue to automatically conform to any federal tax law amendment that extends the expiration date of a federal tax provision to which Virginia conforms or has previously conformed.
- The legislation allows Virginia to conform to most of the provisions of the 2025 federal Budget Reconciliation Act (P.L. 119-21) and decreases Virginia’s deduction for disallowed business interest beginning in Tax Year 2025.
For more information, including details on new and existing exceptions to the IRC, view the Tax Bulletin 26-1 at: www.tax.virginia.gov/tb-26-1-date-of-irc-conformity-advanced
