Small businesses; parental leave tax credit. (HB2533)

Introduced By

Del. Hala Ayala (D-Woodbridge) with support from co-patrons Del. Kaye Kory (D-Falls Church), and Del. Marcus Simon (D-Falls Church)

Progress

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

Description

Small business parental leave tax credit. Creates an income tax credit for taxable year 2021 for a portion of the salary or wages paid by small businesses to full-time employees while on leave for the birth or adoption of a child. The credit equals 65 percent of the first $8,333 in salary and wages paid by the small business to an employee while on parental leave, which must be leave taken that is separate from any paid vacation, sick, or other paid leave. The bill provides that small businesses must allow full-time employees to take at least eight workweeks of paid parental leave. The salary or wages paid for each week of parental leave must be at least 80 percent of the employee's weekly salary or wages immediately prior to the employee taking leave. In no case will credit be allowed subsequent to 12 workweeks of parental leave. Eligible small businesses must (i) have been operating for at least two full fiscal years immediately prior to the relevant taxable year; (ii) be at least 51 percent independently owned and controlled by one or more individuals who are U.S. citizens or legal residents; (iii) have, together with affiliates, fewer than 50 full-time employees for the relevant taxable year; and (iv) have both management and daily business operations under the control of one or more individual owners. The bill defines full-time employees as employees in a job of indefinite duration that requires a minimum of 35 hours per week for at least 48 weeks during the calendar year or a minimum of 1,680 hours during the calendar year. The bill provides that small businesses apply for credit from the Department of Taxation, the administering agency for the credit program. The Department will consider complete applications on a first-come, first-served basis and issue credits accordingly. The Department may issue up to $5.5 million in tax credits each fiscal year. Any unused credit may be carried forward by the small business for seven taxable years following the taxable year for which the credit was issued. The credit expires beginning with taxable year 2022. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/09/2019Committee
01/09/2019Prefiled and ordered printed; offered 01/09/19 19102246D
01/09/2019Referred to Committee on Finance
01/18/2019Assigned Finance sub: Subcommittee #1
01/21/2019Impact statement from TAX (HB2533)
01/23/2019Subcommittee recommends laying on the table (7-Y 1-N)
02/05/2019Left in Finance