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:

Those copatrons are Del. Clay Athey (R-Front Royal), Del. Kathy Byron (R-Lynchburg), Del. Barbara Comstock (R-McLean), Del. Anne Crockett-Stark (R-Wytheville), Del. Mark Keam (D-Vienna), Del. Steve Landes (R-Weyers Cave), Del. Jim LeMunyon (R-Oak Hill), Del. Jackson Miller (R-Manassas), Del. Dave Nutter (R-Christiansburg), Del. Chris Peace (R-Mechanicsville), Del. Mark Sickles (D-Alexandria), Sen. Lynwood Lewis (D-Accomac), Sen. Steve Martin (R-Chesterfield), Sen. Jill Holtzman Vogel (R-Winchester)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
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. Read the Bill »

Outcome

Bill Has Passed

History

DateAction
01/12/2010Committee
01/12/2010Prefiled and ordered printed; offered 01/13/10 10103717D
01/12/2010Referred to Committee on Finance
01/19/2010Assigned Finance sub: #2
02/01/2010Impact statement from TAX (HB523)
02/03/2010Subcommittee recommends reporting with amendment(s) (10-Y 0-N)
02/10/2010Reported from Finance with substitute (21-Y 1-N) (see vote tally)
02/10/2010Committee substitute printed 10104952D-H1
02/12/2010Read first time
02/15/2010Read second time
02/15/2010Committee substitute agreed to 10104952D-H1
02/15/2010Engrossed by House - committee substitute HB523H1
02/16/2010Read third time and passed House (97-Y 2-N)
02/16/2010VOTE: --- PASSAGE (97-Y 2-N) (see vote tally)
02/17/2010Constitutional reading dispensed
02/17/2010Referred to Committee on Finance
02/19/2010Impact statement from TAX (HB523H1)
02/23/2010Reported from Finance (15-Y 0-N) (see vote tally)
02/24/2010Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/25/2010Read third time
02/25/2010Passed Senate (40-Y 0-N) (see vote tally)
03/03/2010Enrolled
03/03/2010Bill text as passed House and Senate (HB523ER)
03/03/2010Impact statement from TAX (HB523ER)
03/03/2010Signed by Speaker
03/06/2010Signed by President
04/13/2010Governor's recommendation received by House
04/20/2010Placed on Calendar
04/21/2010House concurred in Governor's recommendation (95-Y 0-N)
04/21/2010VOTE: --- ADOPTION (95-Y 0-N) (see vote tally)
04/21/2010Senate concurred in Governor's recommendation (39-Y 0-N) (see vote tally)
04/21/2010G Governor's recommendation adopted
04/21/2010Reenrolled
04/21/2010Reenrolled bill text (HB523ER2)
04/21/2010Signed by Speaker as reenrolled
04/21/2010Signed by President as reenrolled
04/21/2010Enacted, Chapter 830 (effective 7/1/10)
04/21/2010G Acts of Assembly Chapter text (CHAP0830)

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 1 minute.

Comments

Virginia ITSP Association, tracking this bill in Photosynthesis, notes:

Finance, Technology - Tax

VaBIO writes:

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.

Letitia Green writes:

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.