Income tax; tax credit for research and development expenses. (HB1743)

Introduced By

Del. Tim Hugo (R-Centreville) with support from co-patron Del. Eileen Filler-Corn (D-Fairfax Station)

Progress

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

Description

Research and development expenses income tax credit. Provides that beginning with taxable year 2015, the credit will equal 10 percent of the difference of (i) a taxpayer's Virginia qualified research and development expenses for the current taxable year and (ii) 50 percent of such taxpayer's average Virginia qualified research and development expenses for the immediately preceding three taxable years. If the taxpayer did not pay or incur Virginia qualified research and development expenses in one or more of the immediately preceding three years, the credit will equal seven percent of the taxpayer's Virginia qualified research and development expenses for the current taxable year. Under current law, the credit equals (i) 15 percent of the first $234,000 of the taxpayer's Virginia qualified research and development expenses that exceed a base amount or (ii) if the research and development was conducted in conjunction with a Virginia college or university, 20 percent of the taxpayer's first $234,000 in Virginia qualified research and development expenses that exceed a base amount. The bill also eliminates the $6 million annual cap on credits awarded and the requirement to apply to the Department of Taxation for the tax credit. Amends § 58.1-439.12:08, of the Code of Virginia. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/12/2015Committee
01/12/2015Prefiled and ordered printed; offered 01/14/15 15101868D
01/12/2015Referred to Committee on Finance
01/20/2015Assigned Finance sub: Subcommittee #3
01/26/2015Impact statement from TAX (HB1743)
01/30/2015Subcommittee recommends laying on the table
02/10/2015Left in Finance