Virginia Governor Signs Law Concerning Affiliated Corporations’ Corporate Income Tax Return Filing Election

The Virginia Governor April 11 signed a law concerning corporate income tax returns of affiliated corporations. The law includes measures: 1) providing that for taxable years beginning on and after Jan. 1, 2023, but before Jan. 1, 2025, an affiliated group of corporations may elect to change the tax return type to consolidated from combined under certain conditions; 2) requiring eligible affiliated groups making the election to agree to file returns computing its Virginia income tax liability under both the new and former method and to pay the greater of the two amounts for the taxable year the new election ...