Income tax, state; exemption for any income taxed as long-term capital gain for federal income tax. (HB523)
Introduced By
Del. Sam Nixon (R-Richmond) with support from 14 copatrons, whose average partisan position is:
Progress
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Introduced |
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Passed Committee |
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Passed House |
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Passed Senate |
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Signed by Governor |
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Became Law |
Description
Income taxes; recognition of income from capital gains. Grants an income tax exemption for any gain taxed as a capital gain for federal income tax purposes, on or after January 1, 2010, that is related to a qualified investment of a technology and science start-up business made in the first three years in which the business was founded. No investment shall be "qualified" if the otherwise qualified business performs research in Virginia on human cells or tissue derived from induced abortions or from stem cells obtained from human embryos. Amends § 58.1-322 (“Virginia taxable income of residents.”), § 58.1-402 (“Virginia taxable income.”), of the Code of Virginia. View Full Text »
Comments
Finance, Technology - Tax
This bill is designed to encourage private investment in small, advanced technology companies during the next three years. If a venture is successful and is eventually sold, the amount of the gain is excluded from the state's 5.75% tax. Therefore, no appropriation by the Commonwealth is required and the only impact is down the road on gains that most likely would not have occurred otherwise. The added benefit is that not all companies will succeed, so the Commonwealth will also benefit from all the jobs created now, even if that firm is never sold one day for a profit.
This bill is something that the Commonwealth needs and may spur more companies to come to Virginia, even if, as VaBio states, the jobs and/or company are eventually uploaded to another location by acquisition.