New media and technology innovation; establishes income tax credit. (HB2163)

Introduced By

Del. Glenn Davis (R-Virginia Beach) with support from co-patron Del. Lamont Bagby (D-Richmond)

Progress

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

Description

New media and technology innovation income tax credit. Establishes a new media and technology innovation income tax credit, starting with taxable year 2019, which is a nonrefundable tax credit for expenses related to producing in Virginia commercial advertisements, digital interactive media productions, and episodic television series. The bill allows a company to submit a single application for a project covering multiple tax years and requires such company to make available a third-party audit of its project-related expenses. The bill provides that the Department of Taxation and the Virginia Film Office shall review applications for credits and that the MEI (Major Employment and Investment) Project Approval Commission shall review applications for tax credits and recommend whether to endorse them; however, its recommendation shall not be binding on the determination of the Department and the Virginia Film Office on whether to approve the application. The credit equals 15 percent of expenses or 20 percent for productions in economically distressed areas of Virginia. Expenses eligible for the credit exclude purchases that were exempt from sales tax unless such purchases were made at least one year prior to such taxpayer entering into an agreement with the Virginia Film Office related to the tax credit. Productions may receive additional credits of up to 20 percent of (i) production costs over $250,000 and (ii) compensation paid to Virginia residents who are first-time actors or production crew members. The bill provides that credits may be carried over to subsequent taxable years for up to 10 years and transferred to another party upon payment to the Department of a fee of two percent. The bill authorizes the Governor to use moneys in the Motion Picture Opportunity Fund or other funds appropriated for such purpose to buy back credits from credit holders, provided that the Governor pays at least 80 percent of their value. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/08/2019Committee
01/08/2019Prefiled and ordered printed; offered 01/09/19 19100986D
01/08/2019Referred to Committee on Finance
01/18/2019Assigned Finance sub: Subcommittee #1
01/22/2019Impact statement from TAX (HB2163)
01/30/2019House subcommittee amendments and substitutes offered
01/30/2019Subcommittee recommends reporting with substitute (6-Y 3-N)
01/30/2019Reported from Finance with substitute (15-Y 5-N) (see vote tally)
01/30/2019Committee substitute printed 19104582D-H1
02/01/2019Read first time
02/04/2019Read second time
02/04/2019Committee substitute agreed to 19104582D-H1
02/04/2019Motion to rerefer to committee agreed to
02/04/2019Rereferred to Finance
02/05/2019Left in Finance