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1997 SESSION

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SB 1113 Capital investment tax credit.

Introduced by: William C. Wampler, Jr. | all patrons    ...    notes | add to my profiles

SUMMARY:

Capital investment tax credit. Establishes a tax credit for any taxpayer that makes an eligible capital investment in the Commonwealth of at least $1 million. Eligible capital investments are personal property or machinery and tools placed in service in the Commonwealth which result in the creation of jobs for at least 25 full-time employees. The amount of the credit is a percentage of the amount of the eligible capital investment in excess of $1 million. If the investment is made in an economically distressed area or an enterprise zone, the threshold amount of the investment is reduced to $500,000. For investments between $1 million and $5 million, the credit is five percent of the amount over the threshold amount; for investments between $5 million and $25 million, it is four percent of the amount over the threshold amount; for investments between $25 million and $100 million, it is three percent of the amount over the threshold amount; and for investments over $100 million, it is determined by the Secretary of Commerce and Trade, in consultation with the taxpayer, not to exceed two percent of the amount over the threshold amount. One-fifth of the credit amount may be taken annually for five years. The credits are not refundable, but unused credits may be carried forward for 10 years. The measure provides for the recapture of the credit if the investment is taken out of service or the number of qualified full-time employees falls below the number required to qualify for the tax credit. The credit is not available to taxpayers receiving credits under the Enterprise Zone Act or certain other tax credits. The credit is available for taxable years beginning on and after January 1, 1998, but before January 1, 2008; however, the credit applies only where an announcement of intent to make an eligible capital investment is made on or after January 1, 1997.


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