Technology and Biotechnology Investment Act; created. (HB159)

Introduced By

Del. Bob Purkey (R-Virginia Beach)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Virginia Technology and Biotechnology Investment Act created. Creates a research and development tax credit, not to exceed 50% of the tax liability due and not to exceed $500,000, for "technology" and "biotechnology" companies in Virginia and permits the credit to be carried over for up to 10 years, for taxable years beginning on and after January 1, 2006. The bill also creates a tax credit for individual taxpayers, estates, trusts, partnerships, and corporations that invest in technology or biotechnology companies. This tax credit, not to exceed 15% of the qualified investment and not to exceed $500,000, can be claimed for each of the five tax years beginning on and after January 1, 2006. In no event will more than $5 million in either of the credits be allowed annually. In addition, any unused tax credits can be carried over, in most circumstances, for up to 10 years. The bill permits technology or biotechnology companies to carry over net operating losses for up to 10 years. The bill creates a "corporation tax benefit certificate program" to be administered by the Innovative Technology Authority in cooperation with the Tax Department. Under the program, technology or biotechnology companies may transfer their unused but otherwise allowable research and development tax credits or net operating loss carryovers for a minimum of 75 cents on the dollar to another corporation taxpayer provided neither is an affiliate or a subsidiary of the other. The proceeds from the transfer can be used for a broad range of "costs" associated with operating a technology or biotechnology company. Read the Bill »

Status

02/10/2006: Failed to Pass in Committee

History

DateAction
12/29/2005Prefiled and ordered printed; offered 01/11/06 063679472
12/29/2005Referred to Committee on Finance
01/18/2006Assigned to Finance sub-committee: #3 (Ware, R.L.)
01/26/2006Fiscal impact statement from TAX (HB159)
01/30/2006Reported from Finance with amendments (18-Y 2-N)
01/30/2006Referred to Committee on Appropriations
02/02/2006Assigned App. sub: Commerce, Agriculture, and Natural Resources
02/10/2006Continued to 2007 in Appropriations