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