Virginia Senate Bill 540 (Prior Session Legislation)

---

Spectrum: Partisan Bill (Republican 2-0)
Status: Introduced on January 12 2022 - 25% progression, died in committee
Action: 2022-11-21 - Left in Finance and Appropriations
Pending: Senate Finance and Appropriations Committee
Text: Latest bill text (Prefiled) [HTML]

Income tax credit; small businesses. Provides, in taxable year 2022, an individual or corporate income tax credit, as applicable for an eligible small business, defined in the bill as a (i) (a) pass-through entity that employs fewer than 50 employees and that has no more than $10 million in gross receipts during such taxable year or (b) self-employed individual or (ii) corporation that is at least 51 percent independently owned by one or more United States citizens or legal resident aliens, employs fewer than 50 employees together with affiliates, and has no more than $10 million in gross receipts during the taxable year, and where the individual business owners must control both the management and daily operations of the business. The individual income tax credit is equal to the amount of Virginia income tax owed on up to $250,000 of personal income during such taxable year and the credit for a corporation equals the amount of Virginia income tax owed during such taxable year on up to $250,000 of the amount that is not deductible when computing federal tax due to Virginia's deconformity from certain provisions of the federal Consolidated Appropriations Act of 2020. The credit is subject to an aggregate cap of $75 million. Income tax credit; small businesses. Provides, in taxable year 2022, an individual or corporate income tax credit, as applicable for an eligible small business, defined in the bill as a (i) (a) pass-through entity that employs fewer than 50 employees and that has no more than $10 million in gross receipts during such taxable year or (b) self-employed individual or (ii) corporation that is at least 51 percent independently owned by one or more United States citizens or legal resident aliens, employs fewer than 50 employees together with affiliates, and has no more than $10 million in gross receipts during the taxable year, and where the individual business owners must control both the management and daily operations of the business. The individual income tax credit is equal to the amount of Virginia income tax owed on up to $250,000 of personal income during such taxable year and the credit for a corporation equals the amount of Virginia income tax owed during such taxable year on up to $250,000 of the amount that is not deductible when computing federal tax due to Virginia's deconformity from certain provisions of the federal Consolidated Appropriations Act of 2020. The credit is subject to an aggregate cap of $75 million.

Income tax, state and corporate; credit for small businesses.

Sen. Mark Peake [R]

Sen. Frank Ruff [R]

2022-02-10 - Senate - Senate: Continued to 2023 in Finance and Appropriations (12-Y 4-N) (Y: 12 N: 4 NV: 0 Abs: 0) [PASS]

Date	Chamber	Action
2022-11-21	Senate	Left in Finance and Appropriations
2022-02-10	Senate	Continued to 2023 in Finance and Appropriations (12-Y 4-N)
2022-01-12	Senate	Referred to Committee on Finance and Appropriations
2022-01-12	Senate	Prefiled and ordered printed; offered 01/12/22 22103769D

SB540 (Carry Over) 2022-02-10 - Continued to 2023 in Finance and Appropriations (12-Y 4-N)

Chapter	Article	Section	Citation Type	Statute Text
58	1	439.12:13	(n/a)	See Bill Text

Type	Source
Summary	https://lis.virginia.gov/cgi-bin/legp604.exe?231+sum+SB540
Text	https://lis.virginia.gov/cgi-bin/legp604.exe?231+ful+SB540+hil
Supplement	https://lis.virginia.gov/cgi-bin/legp604.exe?231+oth+SB540F161+PDF
Roll Call	https://lis.virginia.gov/cgi-bin/legp604.exe?231+vot+S05C0221+SB0540