Income tax, state; subtractions and credits for investments in technology businesses. (HB799)

Introduced By

Sen. John Bell (D-Chantilly) with support from co-patron Del. Glenn Davis (R-Virginia Beach)

Description

Income tax subtractions and credits for investments in technology businesses. Modifies the qualified equity and subordinated debt investments tax credit by (i) increasing the maximum amount of credits that can be issued each year from $5 million to $7.5 million, (ii) allocating the $2.5 million annual increase in credits to cybersecurity businesses, and (iii) allowing credit for investments in technology businesses with no more than 50 full-time employees. Currently, credit is allowed for an equity or debt investment in a technology business if the business (a) has annual gross revenues of no more than $3 million in its most recent fiscal year, (b) has its principal office or facility in the Commonwealth, (c) is engaged in business primarily in or does substantially all of its production in the Commonwealth, and (d) has not obtained during its existence more than $3 million in aggregate gross cash proceeds from the issuance of its equity or debt investments. Under the bill, in lieu of having no more than $3 million in annual gross revenues for its most recent fiscal year, a business can be a qualifying business if it has no more than 50 full-time employees for such year. The bill also modifies an income tax subtraction that is similar to the tax credit by allowing the subtraction for an investment in a technology business if the business had no more than 50 full-time employees in its most recent fiscal year. The bill is effective beginning with taxable year 2016. Read the Bill »

Outcome

History