In the case of a pipeline distribution company, a gas utility, a gas supplieror an electric supplier, as defined in § 58.1-400.2, that was subject to thetax imposed under § 58.1-2626 with respect to its gross receipts receivedduring the year commencing January 1, 2000, and that on or after January 1,2001, becomes subject to the corporate income tax pursuant to Article 10 (§58.1-400 et seq.) of this chapter, net income shall be computed by takinginto account the following adjustments:
In addition to the deductions for depreciation, amortization, or other costrecovery currently allowed by this Code, there shall be allowed deductionsfor the amortization of the Virginia tax basis of assets that are recoverablefor financial accounting and/or income tax purposes placed in service priorto the adjustment date. For purposes of this section, (i) "Virginia taxbasis" means the aggregate adjusted book basis less the aggregate adjustedtax basis of such assets as recorded on the company's books of accounts as ofthe last day of the tax year immediately preceding the adjustment date and(ii) "adjustment date" means the first day of the tax year in which suchpipeline distribution company, gas utility, gas supplier or electric supplierbecomes subject to the tax imposed by § 58.1-400.2 A. The amortization of theVirginia tax basis shall be computed using the straight-line method over aperiod of thirty years, beginning on the adjustment date. Gain or loss on thedisposition or retirement of any such asset shall be computed using itsadjusted federal tax basis, and the amortization of the Virginia tax basisshall continue thereafter without adjustment. The Department of Taxationshall promulgate regulations describing a reasonable method of allocating theVirginia tax basis in the event that a portion of the operations of apipeline distribution company, gas utility, gas supplier or electric supplierare separated, spun-off, transferred to a separate company or otherwisedisaggregated. For gas suppliers, pipeline distribution companies or gasutilities which are required to file an income tax return for a short taxableyear pursuant to subsection E of § 58.1-400.2, a portion of the amortizedVirginia tax basis will be disallowed based on the proration in computingVirginia taxable income. Such portion will be recovered as a deduction in thefirst taxable year after which this deduction is no longer applicable.
For rate-making and accounting purposes, the State Corporation Commissionshall not require a pipeline distribution company or gas utility to amortizethese deferred taxes over a period other than the thirty-year periodprescribed herein, nor shall the State Corporation Commission require thetreatment of accelerated depreciation different from that allowed for federalincome taxes.
In the case of a pipeline distribution company, a gas utility, a gas supplieror an electric supplier, as defined in § 58.1-400.2, that was subject to thetax imposed under § 58.1-2626 with respect to its gross receipts receivedduring the year commencing January 1, 2000, and that on or after January 1,2001, becomes subject to the corporate income tax pursuant to Article 10 (§58.1-400 et seq.) of this chapter, net income shall be computed by takinginto account the following adjustments:
In addition to the deductions for depreciation, amortization, or other costrecovery currently allowed by this Code, there shall be allowed deductionsfor the amortization of the Virginia tax basis of assets that are recoverablefor financial accounting and/or income tax purposes placed in service priorto the adjustment date. For purposes of this section, (i) "Virginia taxbasis" means the aggregate adjusted book basis less the aggregate adjustedtax basis of such assets as recorded on the company's books of accounts as ofthe last day of the tax year immediately preceding the adjustment date and(ii) "adjustment date" means the first day of the tax year in which suchpipeline distribution company, gas utility, gas supplier or electric supplierbecomes subject to the tax imposed by § 58.1-400.2 A. The amortization of theVirginia tax basis shall be computed using the straight-line method over aperiod of thirty years, beginning on the adjustment date. Gain or loss on thedisposition or retirement of any such asset shall be computed using itsadjusted federal tax basis, and the amortization of the Virginia tax basisshall continue thereafter without adjustment. The Department of Taxationshall promulgate regulations describing a reasonable method of allocating theVirginia tax basis in the event that a portion of the operations of apipeline distribution company, gas utility, gas supplier or electric supplierare separated, spun-off, transferred to a separate company or otherwisedisaggregated. For gas suppliers, pipeline distribution companies or gasutilities which are required to file an income tax return for a short taxableyear pursuant to subsection E of § 58.1-400.2, a portion of the amortizedVirginia tax basis will be disallowed based on the proration in computingVirginia taxable income. Such portion will be recovered as a deduction in thefirst taxable year after which this deduction is no longer applicable.
For rate-making and accounting purposes, the State Corporation Commissionshall not require a pipeline distribution company or gas utility to amortizethese deferred taxes over a period other than the thirty-year periodprescribed herein, nor shall the State Corporation Commission require thetreatment of accelerated depreciation different from that allowed for federalincome taxes.
In the case of a pipeline distribution company, a gas utility, a gas supplieror an electric supplier, as defined in § 58.1-400.2, that was subject to thetax imposed under § 58.1-2626 with respect to its gross receipts receivedduring the year commencing January 1, 2000, and that on or after January 1,2001, becomes subject to the corporate income tax pursuant to Article 10 (§58.1-400 et seq.) of this chapter, net income shall be computed by takinginto account the following adjustments:
In addition to the deductions for depreciation, amortization, or other costrecovery currently allowed by this Code, there shall be allowed deductionsfor the amortization of the Virginia tax basis of assets that are recoverablefor financial accounting and/or income tax purposes placed in service priorto the adjustment date. For purposes of this section, (i) "Virginia taxbasis" means the aggregate adjusted book basis less the aggregate adjustedtax basis of such assets as recorded on the company's books of accounts as ofthe last day of the tax year immediately preceding the adjustment date and(ii) "adjustment date" means the first day of the tax year in which suchpipeline distribution company, gas utility, gas supplier or electric supplierbecomes subject to the tax imposed by § 58.1-400.2 A. The amortization of theVirginia tax basis shall be computed using the straight-line method over aperiod of thirty years, beginning on the adjustment date. Gain or loss on thedisposition or retirement of any such asset shall be computed using itsadjusted federal tax basis, and the amortization of the Virginia tax basisshall continue thereafter without adjustment. The Department of Taxationshall promulgate regulations describing a reasonable method of allocating theVirginia tax basis in the event that a portion of the operations of apipeline distribution company, gas utility, gas supplier or electric supplierare separated, spun-off, transferred to a separate company or otherwisedisaggregated. For gas suppliers, pipeline distribution companies or gasutilities which are required to file an income tax return for a short taxableyear pursuant to subsection E of § 58.1-400.2, a portion of the amortizedVirginia tax basis will be disallowed based on the proration in computingVirginia taxable income. Such portion will be recovered as a deduction in thefirst taxable year after which this deduction is no longer applicable.
For rate-making and accounting purposes, the State Corporation Commissionshall not require a pipeline distribution company or gas utility to amortizethese deferred taxes over a period other than the thirty-year periodprescribed herein, nor shall the State Corporation Commission require thetreatment of accelerated depreciation different from that allowed for federalincome taxes.
