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2001 SESSION
HB 401 Qualified equity and subordinated debt investments tax credit.
Introduced by: William W. (Ted) Bennett, Jr. | all patrons ... notes | add to my profiles | history
SUMMARY AS PASSED HOUSE:
Qualified equity and subordinated debt investments tax credit. Amends the qualified equity and subordinated debt investment tax credit (§ 58.1-339.4) in the following manner: (i) increases the total amount of tax credit available in a calendar year from $5 million to $20 million; (ii) changes the $50,000 cap per taxpayer to the amount equal to 10 percent of the total amount of tax credit available in a calendar year; (iii) reduces the tax credit from an amount equal to 50 percent of the investment to 25 percent of the investment so that the total amount invested would be higher; and (iv) reduces the number of years an investor must retain the equities from five years to two years. In addition, the bill requires the Virginia Department of Taxation to adopt regulation which will (i) make tax credits available in quarterly installments of 25 percent of the total annual credit on first-come, first-serve basis, (ii) caps the amount of credit allowed per taxpayer in a quarter to two and one-half percent of the total amount allowed in a calendar year, and (iii) expunges any unclaimed credit in a quarter. This bill is a recommendation of the Joint Commission on Technology and Science.
SUMMARY AS INTRODUCED:
Qualified equity and subordinated debt investments tax credit. Amends the qualified equity and subordinated debt investment tax credit (§ 58.1-339.4) in the following manner: (i) increases the total amount of tax credit available in a calendar year from $5 million to $20 million; (ii) changes the $50,000 cap per taxpayer to the amount equal to 10 percent of the total amount of tax credit available in a calendar year; (iii) reduces the tax credit from an amount equal to 50 percent of the investment to 25 percent of the investment so that the total amount invested would be higher; and (iv) reduces the number of years an investor must retain the equities from 5 years to 2 years. In addition, the bill requires the Virginia Department of Taxation to adopt regulation which will (i) make tax credits available in quarterly installments of 25 percent of the total annual credit on first-come, first-serve basis, (ii) caps the amount of credit allowed per taxpayer in a quarter to 2.5 percent of the total amount allowed in a calendar year, and (iii) expunges any unclaimed credit in a quarter. This bill is a recommendation of the Joint Commission on Technology and Science.