Coal tax; limits aggregate amount of credits that may be allocated or claimed for employment, etc. (HB2198)

Introduced By

Del. Terry Kilgore (R-Gate City) with support from co-patron Del. Jimmie Massie (R-Richmond)

Progress

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

Description

Coal tax credits. Limits the aggregate amount of credits that may be allocated or claimed for the coal employment and production incentive tax credit to $7.3 million in each fiscal year. An electricity generator must file an application with the Department of Taxation each year to determine the amount of credits that it may claim or allocate, including credits earned in prior taxable years. If the total amount of approved applications for tax credits for the fiscal year exceeds $7.3 million, the Department of Taxation shall apportion the credits on a pro rata basis. The bill extends from July 1, 2016, to January 1, 2022, the date by which coal employment and production incentive tax credits must be earned in order to be allocated to persons with an economic interest in coal. The bill also extends from taxable year 2017 to taxable year 2022 the sunset date of the coalfield employment enhancement tax credit. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/11/2017Committee
01/11/2017Prefiled and ordered printed; offered 01/11/17 17103048D
01/11/2017Referred to Committee on Finance
01/24/2017Impact statement from TAX (HB2198)
01/30/2017Reported from Finance with substitute (15-Y 6-N) (see vote tally)
01/30/2017Committee substitute printed 17104757D-H1
01/31/2017Read first time
02/01/2017Read second time
02/01/2017Committee substitute agreed to 17104757D-H1
02/01/2017Engrossed by House - committee substitute HB2198H1
02/02/2017Read third time and passed House (65-Y 29-N 1-A)
02/02/2017VOTE: PASSAGE (65-Y 29-N 1-A) (see vote tally)
02/03/2017Constitutional reading dispensed
02/03/2017Referred to Committee on Finance
02/07/2017Impact statement from TAX (HB2198H1)
02/08/2017Reported from Finance (10-Y 4-N) (see vote tally)
02/09/2017Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/10/2017Read third time
02/10/2017Passed Senate (24-Y 15-N) (see vote tally)
02/14/2017Enrolled
02/14/2017Bill text as passed House and Senate (HB2198ER)
02/14/2017Signed by Speaker
02/15/2017Signed by President
02/15/2017Enrolled Bill communicated to Governor on 2/15/17
02/15/2017G Governor's Action Deadline Midnight, February 22, 2017
02/17/2017Impact statement from TAX (HB2198ER)
02/21/2017G Vetoed by Governor
02/23/2017Passed by until Wednesday, April 5, 2017
04/05/2017Placed on Calendar
04/05/2017House sustained Governor's veto (65-Y 33-N 1-A)
04/05/2017VOTE: OVERRIDE GOVERNOR'S VETO (65-Y 33-N 1-A) (see vote tally)
04/05/2017(67 affirmative votes required to override)

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 2 clips in all, totaling 11 minutes.

Transcript

This is a transcript of the video clips in which this bill is discussed.

40, HOUSE BILL SECOND READING, REGULAR CALENDAR, CONTINUING --

Del. Bill Howell (R-Fredericksburg): HEY, HEY. COME ON. HOUSE WILL COME TO ORDER.

[Unknown]: HOUSE BILL 1924. A BILL TO DIRECT THE BOARD OF EDUCATION TO ESTABLISH GUIDELINES FOR ALTERNATIVES TO SUSPENSION. REPORT FROM COMMITTEE ON ENGROSSED. EDUCATION.

Del. Bill Howell (R-Fredericksburg): GENTLEMAN FROM HENRICO, MR. BAGBY.

Del. Lamont Bagby (D-Richmond): MR. SPEAKER, 1924 DIRECTS THE BOARD OF EDUCATION TO ESTABLISH GUIDELINES FOR ALTERNATIVES IN CONCERT WITH SCHOOL BOARDS AND SUPERINTENDENTS FOR SHORT-TERM AND LONG-TERM SUSPENSION. I HOPE IT IS THE PLEASURE OF THE BODY TO ENGROSS THE BILL AND PASS TO THIRD READING.

Del. Bill Howell (R-Fredericksburg): SHALL THE BILL BE ENGROSSED AND PASSED TO THIRD READING. AS MANY AS FAVOR THAT MOTION SAY AYE. OPPOSED NO. BILL IS ENGROSSED AND PASSED TO THIRD RIDE -- RODING.

Del. Lamont Bagby (D-Richmond): HOUSE BILL 1962, A BILL TO AMEND AND REENACT RELATING TO EDUCATION IMPROVEMENT SCHOLARSHIPS TAX CREDIT, INCREASE IN CREDIT VALUE. REPORT OF THE COMMITTEE ON FINANCE.

Del. Bill Howell (R-Fredericksburg): GENTLEMAN FROM HENRICO, MR. MASSEY.

[Unknown]: MR. SPEAKER, I REQUEST THAT THE BILL GO BY FOR THE DAY.

Del. Bill Howell (R-Fredericksburg): WITHOUT OBJECTION, HOUSE BILL 1962, BY FOR THE DAY.

[Unknown]: HOUSE BILL 2058, A BILL TO AMEND AND REENACT A SECTION OF THE CODE RELATING TO SALES AND USE TAXES, NEXUS TO REQUIRE CERTAIN BUSINESSES TO COLLECT AND REMIT SALES AND USE TAX. REPORT FROM COMMITTEE ON FINANCE.

Del. Bill Howell (R-Fredericksburg): GENTLEWOMAN FROM FAIRFAX, MISS WATTS.

Del. Vivian Watts (D-Annandale): THANK YOU, MR. SPEAKER. MR. SPEAKER, THE BILL BEFORE US CLOSES A LOOPHOLE IN SALES TAX COLLECTION AT THE SUGGESTION OF ONE OF THE MEMBERS OF THE GOVERNOR'S ECONOMIC ADVISORY GROUP, WHO POINTED OUT THAT MOST STATES HAVE ALREADY CLOSED THIS LOOP HOPE IN THE LAST DECADE PLUS, AND WHAT IT BASICALLY SAYS, IS THAT THE ITEMS OVER THE INTERNET ARE STORED IN VIRGINIA, AND SOLD TO A VIRGINIA RESIDENT, THAT SALES TAX WILL BE COLLECTED ON THAT SALE. YOU WILL NOTE ON THE FISCAL IMPACT STATEMENT THAT THE GAIN TO THE GENERAL FUND THIS YEAR IS $11 MILLION-PLUS. IN ADDITION TO THAT, I WOULD ALSO POINT OUT BECAUSE IT INVOLVES THE SALES TAX, THAT THERE WILL BE AN ADDITIONAL GAIN OF 4.7 MILLION IN TOTAL TO TRANSPORTATION FUNDS, AS WELL AS A GAIN OF 3.7 IN LOCAL TAX COLLECTIONS ON THE 1% OF THE SALES TAX, AS WELL AS APPROXIMATELY A MILLION DOLLARS THAT FLOWS THROUGH THESE SCHOOL FUNDING FORMULA. I HOPE IT BE THE PLEASURE OF THE HOUSE TO ENGROSS THE BILL AND PASS IT TO THIRD READING.

Del. David Toscano (D-Charlottesville): SHALL THE BILL BE ENGROSSED AND PASSED TO THIRD READING. AS MANY AS FAVOR THAT MOTION SAY AYE. OPPOSED NO. BILL IS ENGROSSED AND PASSED TO THIRD READING.

Del. Vivian Watts (D-Annandale): HOUSE BILL 2 IS OWE 4 -- 2104 TO COMMITTEE ON HOUSE BILL 2105, A BILL TO APPROPRIATIONS. AMEND THE CODE OF VIRGINIA RELATING TO THE INCH VS -- INVESTMENT OF PUBLIC FUNDS ACT, INVESTMENT IN THE VIRGINIA POOL TRUST FUND. REPORT FROM COMMITTEE ON FINANCE WITH A SUBSTITUTE.

Del. Bill Howell (R-Fredericksburg): GENTLEMAN -- GENTLEWOMAN FROM BEDFORD, MISS BRYAN.

[Unknown]: I MOVE THE COMMITTEE SUBSTITUTE.

Del. Chris Jones (R-Suffolk): QUESTION IS ON ADOPTION THE COMMITTEE SUBSTITUTE. AS MANY AS FAVOR THAT MOTION SAY AYE. OPPOSED NO. SUBSTITUTE AGREED TO.

[Unknown]: THANK YOU, MR. SPEAKER. LADIES AND GENTLEMEN OF THE HOUSE, THIS BILL WAS BROUGHT TO YOU ON BEHALF OF THE VIRGINIA MUNICIPAL LEAGUE AND THE VIRGINIA ASSOCIATION OF COUNTIES. THE VIRGINIA INVESTMENT POOL WAS CREATED IN 2013 UNDER THE JOINT EXERCISE OF POWERS ACT, WHICH ALLOWS LOCALITIES TO DO THINGS JOINT RI -- JOINTLY THAT THEY ARE ALREADY PERMITTED TO DO INDIVIDUALLY. SO WE HAVE 47 LOCALITIES THAT HAVE GONE THROUGH THE JOINT EXERCISE OF POWERS ACT TO PARTICIPATE IN THE VIRGINIA INVESTMENT POOL. I DON'T REALLY THINK IT WAS THE INTENT WHEN THEY NEEDED TO GO THROUGH JOINT EXERCISE OF POWERS ACT TO CREATE THE FUND TO REQUIRE A DIFFERENT PROCESS FOR LOCAL ITS TO HAVE TO -- LOCALITIES TO HAVE TO INVEST THEIR FUNDS. ALL THE OTHER FUNDS THAT THEY INVEST, THEY HAVE THE AUTHORITY TO DO SO WITHOUT GOING BEFORE THE BOARD OF SUPERVISORS, AND GETTING PERMISSION FROM THEM TO DO SO. SO WHAT THIS BILL WOULD DO, WOULD ALLOW FOR A UNIFORM PROCESS THAT ALL THE OTHER INVESTMENT FUNDS, IT ALLOWS ADDITIONAL CHOICES FOR THE LOCALITIES TO USE, AND MORE IMPORTANTLY, IT ALLOWS THEM TO, YOU KNOW, POOL THEIR INVESTMENTS TO GET BETTER RATES AND TO HAVE BETTER OPTIONS FOR THE LOCAL ITS. I HOPE IT BE THE PLEASURE OF THE HOUSE TO ENGROSS THE BILL AND MOVE IT TO THIRD READING.

Del. David Toscano (D-Charlottesville): SHALL THE BILL BE ENGROSSED AND PASSED TO THIRD READING. AS MANY AS FAVOR THAT MOTION SAY AYE. OPPOSED NO. BILL IS ENGROSSED AND PASSED TO THIRD READING.

[Unknown]: ON PAGE 41, HOUSE BILL 2198, A BILL TO AMEND AND REENACT TWO SECTIONS OF THE CODE RELATING TO COAL TAX CREDITS. REPORT FROM COMMITTEE ON FINANCE, WITH A SUBSTITUTE.

Del. Terry Kilgore (R-Gate City): GENTLEMAN FROM SCOTT, MR. KILGORE. MR. SPEAKER, I WOULD ASK THAT WE ADOPT THE COMMITTEE SUBSTITUTE. QUESTION IS ON ADOPTION OF COMMITTEE SUBSTITUTE, AS MANY FAVOR THAT SAY AYE. OPPOSED NO. SUBSTITUTE AGREED TO. GENTLEMAN FROM SCOTT. GENTLEMEN OF THE HOUSE, THIS MR. SPEAKER, LADIES AND IS A COAL TAX CREDIT, IT IS A LITTLE BIT DIFFERENT IN THAT WE, IN THE SUBSTITUTE, WE MOVED IT TO JANUARY, WHICH SHOULD HAVE A NET POSITIVE EFFECT ON THE BUDGET, AND THEN WE EXTENDED IT TO -- UNTIL 2022. YOU'VE HEARD THE ARGUMENTS ON THIS BEFORE, HOW VITAL IT IS TO SOUTHWEST VIRGINIA, AND HOW YOU HAVE WITNESSED SOME OF THE BILLS THAT HAVE GONE THROUGH HERE THAT YOU CAN SEE THAT WE ARE LOOKING AT OTHER FORMS OF ENERGY, AS IN PUMP STORAGE AND SOLAR AND OTHER RENEWABLES. HOPE IT BE THE PLEASURE OF THE HOUSE TO ENGROSS THE BILL AND PASS IT TO THIRD READING.

Del. Bill Howell (R-Fredericksburg): GENTLEMAN FROM CHARLOTTESVILLE, MR. TOSCANO.

Del. David Toscano (D-Charlottesville): WILL THE GENTLEMAN YIELD FOR A QUESTION?

[Unknown]: WILL THE GENTLEMAN YIELD?

Del. David Toscano (D-Charlottesville): I YIELD.

[Unknown]: GENTLEMAN YIELDS. MR. SPEAKER, I THANK THE GENTLEMAN, AND I WOULD CALL HIS ATTENTION TO THE FACT THAT TOMORROW IS GROUNDHOG DAY, AND MAYBE WE OUGHT TO DELAY THIS DEBATE UNTIL TOMORROW SO WE CAN REPLAY EVERYTHING WE'VE DONE IN THE PAST. BUT I HAVE A NEW QUESTION FOR THIS YEAR FOR THE GENTLEMAN. BECAUSE I'M TRYING TO FIGURE OUT AT LEAST WITH THE EMPLOYMENT AND -- THE EMPLOYMENT TAX CREDIT. EMPLOYMENT AND PRODUCTION TAX CREDIT. DID I UNDERSTAND THAT CORRECTLY, THAT LAST YEAR WHEN THE GOVERNOR VETOED THE EXTENSION OF THE CREDIT, ESSENTIALLY HE ELIMINATED THE CREDIT. WOULD A THAT UNDERSTANDING BE CORRECT? I WOULD SAY THAT THE CREDIT WAS -- I WOULD SAY IT DID EXPIRE LAST YEAR, YES. MR. SPEAKER, WILL THE GENTLEMAN YIELD? WILL THE GENTLEMAN YIELD? I YIELD. >>YEAR-OLDS. -- GENTLEMAN YIELDS. MR. SPEAKER, I WOULD ASK THE GENTLEMAN THAT THIS IS ESSENTIALLY A NEW CREDIT, IS THAT RIGHT? WELL -- EVEN THOUGH WE'VE HAD IT BEFORE? I WOULD SAY TO THE GENTLEMAN THAT WE DID ALLOW FOR IT IN OUR BUDGET LAST YEAR. WE DID A BUDGET FOR IT, SO I WOULD SAY THAT IT ESSENTIALLY IS NOT A NEW CREDIT, BUT IT DOES ALLOW US TO HAVE MORE MONEY IN THE BUDGET BECAUSE WE DID MOVE THE DATE TO JANUARY INSTEAD OF JULY OF LAST YEAR. MR. SPEAKER, WILL THE GENTLEMAN YIELD? I YIELD. GENTLEMAN YIELDS. THANK YOU, MR. SPEAKER. I ASK THE GENTLEMAN, IF I AM LOOKING AT THE WAY THE NUMBERS WORK HERE, IT LOOKS TO ME THAT THE PRODUCTION TAX CREDIT COSTS THE STATE $9.3 MILLION EACH YEAR IN 2014 AND '15. UNDER YOUR BILL IT GOES DOWN TO 7.3. SO MY QUESTION TO THE GENTLEMAN, IS THAT 2 MILLION BOOKED IN THIS BUDGET AS SAVINGS. NET SAVINGS.

Del. Nick Rush (R-Christiansburg): I WOULD HOPE THAT CHAIRMAN JONES HAS THAT MONEY SPENT ON SOMETHING. I AM NOT SURE. I WOULD HOPE SO.

[Unknown]: MR. SPEAKER, WILL THE GENTLEMAN CHAIR FROM THE CORPORATION RISE -- SUFFOLK RISE. I YIELD. MR. SPEAKER, HONESTLY I WAS NOT PAYING ATTENTION. [ LAUGHTER ] COME ON! I WAS BEING PINGED ON ANOTHER BILL THAT HAS A MUCH BIGGER FINANCIAL IMPACT. THAT'S WHY I WASN'T PAYING ATTENTION. SO LET'S SEE HERE. PLEASE REPEAT THE QUESTION. MAY I REPEAT QUESTION, MR. SPEAKER? I YIELD, YES, SIR. GENTLEMAN YIELD? I ASK THE GENTLEMAN, UNDER THE OLD ARRANGEMENT, THE TAX CREDIT WAS TO COST THE STATE $9.3 MILLION IN '14, AND 9.3 MILLION IN 15, AND UNDER THE DELEGATE FROM SCOTT'S PROPOSAL, IT WOULD BE CAPPED AT $7.3 MILLION A YEAR, SO YOU WOULD GENERATE $2 MILLION, ESSENTIALLY, IN SAVINGS.