Virginia Senate Bill 786 (Prefiled Legislation)

---

Sponsorship: Partisan Bill (Democrat 1)
Status: Introduced on January 23 2026 - 25% progression
Action: 2026-07-21 - Continued from last session
Pending: Senate Finance and Appropriations Committee
Text: Latest bill text (Introduced) [HTML]

Microchip and semiconductor manufacturing and supply chain tax credits; Virginia Economic Development Partnership Authority evaluation; report. Creates a series of individual and corporate income tax credits for companies engaged in the microchip and semiconductor manufacturing and supply chain business that between January 1, 2026, and December 31, 2036, (i) invest at least $400 million, (ii) create at least 100 new jobs, (iii) pay an average prevailing wage salary, and (iv) submit a plan for use of and committing $50 million of community investments. The bill creates three refundable tax credits in taxable years 2026 through 2030 in amounts equal to (a) five percent of capital investment expenditures incurred during the year, (b) six percent of child care services expenditures incurred during the year, and (c) 7.5 percent of gross wages paid for each new job created during the year. The bill also requires the Virginia Economic Development Partnership Authority, in collaboration with the Joint Legislative Audit and Review Commission and the Department of Taxation, to evaluate the benefits and impacts of new economic development incentives for companies engaging in the microchip, semiconductor, and related equipment and material supplies sector. A report on such evaluation is due by November 30, 2026.

Income tax, state and corporate; microchip & semiconductor manufacturing & supply chain tax credits.

Sen. Jennifer Carroll Foy [D]

Date	Chamber	Action
2026-07-21	Senate	Continued from last session
2026-02-05	Senate	Continued to next session in Finance and Appropriations (14-Y 0-N)
2026-02-02	Senate	Fiscal Impact statement From TAX (2/2/2026 7:16 pm)
2026-01-23	Senate	Referred to Committee on Finance and Appropriations
2026-01-23	Senate	Presented and ordered printed 26102841D

SB786 (Carry Over) 2026-02-05 - Continued to next session in Finance and Appropriations (14-Y 0-N)

Type	Source
Summary	https://lis.virginia.gov/bill-details/20271/SB786
Text	https://lis.virginia.gov/bill-details/20271/SB786/text/SB786
Supplement	https://lis.blob.core.windows.net/files/1108127.PDF