Summary as introduced:
Virginia Technology and Biotechnology Research and Development Act created. Creates the Virginia Technology and Biotechnology Research and Development Act. This bill creates a tax credit for qualified research expenses, which is defined by § 41 of the Internal Revenue Code as in-house expenses or contract research expenses, paid by a technology or biotechnology company. This credit is for an amount equal to 50 percent of the qualified research expenses paid in excess of the base amount, calculated in accordance with § 41 of the Internal Revenue Code. Also created is a credit for basic research payments, which, in accordance with § 41 of the Internal Revenue Code and modified to benefit the Commonwealth, means payments made to companies and nonprofit research institutions and organizations located in the Commonwealth for research in technology and biotechnology. Neither credit is to exceed 50 percent of the tax liability due nor exceed $500,000. Any unusable tax credit may be carried over for 10 succeeding taxable years. Each tax credit is capped at $5 million per taxable year. However, if the cap is not reached in a given taxable year, any amount left over shall be utilized in the succeeding taxable year, in addition to that year's caps of $5 million. The bill also creates the "Corporation Tax Benefit Certificate Program" to be administered by the Department of Taxation in cooperation with the Innovative Technology Authority. Under the program, technology or biotechnology companies may transfer their unused but otherwise allowable qualified research expenses tax credits for a minimum of 75 cents for every dollar to another corporation taxpayer provided neither is an affiliate or a subsidiary of the other. The proceeds from the transfer can be used for a broad range of "costs" associated with operating a technology or biotechnology company. These tax credits and the Corporation Tax Benefit Certificate Program are for taxable years beginning on or after January 1, 2003.
01/09/02 House: Presented & ordered printed, prefiled 12/13/01 026002896 pdf | impact statement
01/09/02 House: Presented & ordered printed, prefiled 12/13/01 026002896
01/09/02 House: Referred to Committee on Finance
01/21/02 House: Assigned to Finance sub-committee: 2
01/21/02 House: Continued to 2003 in Finance (21-Y 0-N)