Income tax, corporate and state; modification for certain companies, grants. (HB222)

Introduced By

Del. Will Morefield (R-North Tazewell) with support from 11 copatrons, whose average partisan position is:

Those copatrons are Del. Les Adams (R-Chatham), Del. Lashrecse D. Aird (D-Petersburg), Del. Jeff Campbell (R-Marion), Del. James Edmunds (R-South Boston), Del. Chris Hurst (D-Blacksburg), Del. Terry Kilgore (R-Gate City), Del. Danny Marshall (R-Danville), Del. Todd E. Pillion (R-Abingdon), Sen. Bill Carrico (R-Grayson), Sen. Ben Chafin (R-Lebanon), Sen. Bill Stanley (R-Moneta)

Progress

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

Description

Income tax; modification for certain companies; grants. Establishes an income tax modification for companies that, from 2018 through 2024, either (i) invest at least $5 million in new capital investment in a qualified locality and create at least 10 jobs paying at least 150 percent of the minimum wage in a qualified locality or (ii) create at least 50 jobs paying at least 150 percent of the minimum wage in a qualified locality. A company is eligible to claim the modification only if it had no property or payroll in Virginia on the effective date of the act. The bill defines "qualified locality" to include (a) the Counties of Alleghany, Bland, Buchanan, Carroll, Craig, Dickenson, Giles, Grayson, Lee, Russell, Scott, Smyth, Tazewell, Washington, Wise, and Wythe and the Cities of Bristol, Galax, and Norton; (b) the Counties of Amelia, Appomattox, Buckingham, Charlotte, Cumberland, Halifax, Henry, Lunenburg, Mecklenburg, Nottoway, Patrick, Pittsylvania, and Prince Edward and the Cities of Danville and Martinsville; (c) the Counties of Accomack, Caroline, Essex, Gloucester, King and Queen, King William, Lancaster, Mathews, Middlesex, Northampton, Northumberland, Richmond, and Westmoreland; and (d) the Counties of Brunswick and Dinwiddie and the City of Petersburg. "Qualified locality" also includes certain real property owned or partly owned by such localities outside of their territorial boundaries. The bill requires a company to obtain annual certification from the Virginia Economic Development Partnership Authority (the Authority) that the company will have a positive fiscal impact on Virginia, based on consideration of certain factors. It directs the Authority to deny certification to any company that reorganizes for the purpose of taking advantage of the tax benefits provided by the bill. Generally, the amount of the modification is the value of the company's property and payroll in qualified localities and its sales in Virginia. The bill provides similar modifications for industries that use different apportionment formulas, including motor carriers, financial companies, construction companies, railway companies, manufacturing companies, retailers, and businesses with enterprise data center operations. Eligibility for the income tax apportionment modifications shall continue for six years following the year in which the company initially makes a modification to its apportionment formula. Continuing eligibility is contingent on the company's maintaining its capital investment and jobs created in qualified localities and obtaining re-certification from the Authority. The bill permits qualified localities to provide grants and loans to companies that qualify for the modification provided by the bill. The bill also authorizes grants and loans of up to $2,000 per job per year from the Commonwealth's Development Opportunity Fund to an eligible company. This bill is identical to SB 883. Amends § 15.2-4905, § 2.2-115, § 3.2-3108, § 58.1-405, § 58.1-408, § 58.1-417, § 58.1-418, § 58.1-419, § 58.1-420, § 58.1-422, § 58.1-422.1, § 58.1-461, of the Code of Virginia. Read the Bill »

Outcome

Bill Has Passed

History

DateAction
12/29/2017Committee
12/29/2017Prefiled and ordered printed; offered 01/10/18 18100385D
12/29/2017Referred to Committee on Finance
01/29/2018Impact statement from TAX (HB222)
01/30/2018Assigned Finance sub: Subcommittee #2
02/05/2018Draft Subcommittee substitute printed to LIS only 18106663D-H1
02/07/2018Reported from Finance with substitute (19-Y 3-N) (see vote tally)
02/07/2018Committee substitute printed 18106663D-H2
02/09/2018Read first time
02/12/2018Engrossed by House - committee substitute with amendments HB222EH1
02/12/2018Read second time
02/12/2018Committee substitute agreed to 18106663D-H2
02/12/2018Amendment by Delegate Morefield agreed to
02/12/2018Amendments by Delegate Habeeb agreed to
02/12/2018Pending question ordered
02/12/2018Engrossed by House - committee substitute with amendments HB222EH2
02/12/2018Printed as engrossed 18106663D-EH2
02/13/2018Read third time and passed House (87-Y 12-N)
02/13/2018VOTE: PASSAGE (87-Y 12-N) (see vote tally)
02/14/2018Constitutional reading dispensed
02/14/2018Referred to Committee on Finance
02/26/2018Impact statement from TAX (HB222EH2)
02/27/2018Reported from Finance with substitute (12-Y 3-N) (see vote tally)
02/27/2018Committee substitute printed 18107501D-S1
02/28/2018Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/28/2018Read third time
02/28/2018Reading of substitute waived
02/28/2018Committee substitute agreed to 18107501D-S1
02/28/2018Engrossed by Senate - committee substitute HB222S1
02/28/2018Passed Senate with substitute (31-Y 9-N) (see vote tally)
02/28/2018Senate substitute rejected by House 18107501D-S1 (0-Y 95-N)
02/28/2018VOTE: REJECTED (0-Y 95-N) (see vote tally)
02/28/2018Senate insisted on substitute (40-Y 0-N) (see vote tally)
02/28/2018Senate requested conference committee
02/28/2018Placed on Calendar
02/28/2018House acceded to request
02/28/2018Conferees appointed by Senate
02/28/2018Senators: Stanley, Hanger, Howell
02/28/2018Conferees appointed by House
02/28/2018Delegates: Morefield, Hugo, Aird
03/09/2018C Amended by conference committee
03/09/2018Conference substitute printed 18108193D-H3
03/09/2018Conference report agreed to by Senate (37-Y 3-N) (see vote tally)
03/09/2018Conference report agreed to by House (88-Y 7-N)
03/09/2018VOTE: ADOPTION (88-Y 7-N) (see vote tally)
03/09/2018Reconsideration of conference report agreed to by House
03/09/2018Conference report agreed to by House (86-Y 10-N)
03/09/2018VOTE: ADOPTION #2 (86-Y 10-N) (see vote tally)
03/20/2018Enrolled
03/20/2018Bill text as passed House and Senate (HB222ER)
03/20/2018Signed by Speaker
03/21/2018Impact statement from TAX (HB222ER)
03/22/2018Signed by President
03/26/2018Enrolled Bill communicated to Governor on March 26, 2018
03/26/2018G Governor's Action Deadline Midnight, April 9, 2018
04/09/2018G Approved by Governor-Chapter 802 (effective 7/1/18)
04/09/2018G Acts of Assembly Chapter text (CHAP0802)

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 2 minutes.