Virginia Tax Department Announces Fixed Conformity Date for 2025 Income Tax Returns

The Virginia Department of Taxation issued a tax bulletin announcing that the state’s rolling conformity to the Internal Revenue Code has been replaced with a fixed conformity date of Dec. 31, 2025. The bulletin provides guidance on how Virginia conforms or deconforms from various provisions of the 2025 federal Budget Reconciliation Act, including immediate expensing of certain assets, limitations on business interest deductions, and itemized deduction limitations for individual taxpayers. [Va. Dep’t of Tax’n, Tax Bulletin 26-1, 02/20/26]

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