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)

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. Read the Bill »

Outcome

History