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1995 SESSION

LD8588322
HOUSE BILL NO. 2424
Offered January 23, 1995
A BILL to amend the Code of Virginia by adding in Article 14 of Title 58.1 a section numbered 58.1-439.1, relating to the industrial development firm tax credit.
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Patron--Kilgore
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Referred to Committee on Finance
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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 14 of Title 58.1 a section numbered 58.1-439.1 as follows:

§ 58.1-439.1. Industrial development firm tax credit.

A. For taxable years beginning on and after January 1, 1996, an industrial development firm which either locates or expands on publicly owned or controlled land shall be allowed a credit against up to seventy-five percent of the income taxes imposed by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and 10 (§ 58.1-400 et seq.) of Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); Article 1 (§ 58.1-2500 et seq.) of Chapter 25; or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 of this title in the amount of $1,000 per qualified full-time employee employed during the credit year. The credit shall be allowed ratably, with one-fourth of the credit amount allowed annually for four years beginning with the credit year.

B. “Industrial development firm” means a firm which employs at least twenty full-time individuals at a rate of pay which is at least equivalent to the median of the Standard Industrial Classification category for the jurisdiction in which the firm is located, or employs at a level twenty percent above that which is eligible for social assistance, whichever is greater.

C. “Publicly owned land” means land held or controlled by a local or state government, agency, or designated component thereof or held for expansion or relocation within a publicly controlled industrial park.

D. For purposes of this section, “credit year” means the first taxable year following the year in which the industrial development firm commenced or expanded operations.

E. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entity.