HB 222 Income tax, corporate and state; modification for certain companies, grants.
James W. Morefield | all patrons    ...    notes
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Summary as passed: (all summaries)

Income tax; modification for certain companies; grants. Establishes an income tax modification for companies that, from 2018 through 2024, either (i) invest at least $5 million in new capital investment in a qualified locality and create at least 10 jobs paying at least 150 percent of the minimum wage in a qualified locality or (ii) create at least 50 jobs paying at least 150 percent of the minimum wage in a qualified locality. A company is eligible to claim the modification only if it had no property or payroll in Virginia on the effective date of the act.

The bill defines "qualified locality" to include (a) the Counties of Alleghany, Bland, Buchanan, Carroll, Craig, Dickenson, Giles, Grayson, Lee, Russell, Scott, Smyth, Tazewell, Washington, Wise, and Wythe and the Cities of Bristol, Galax, and Norton; (b) the Counties of Amelia, Appomattox, Buckingham, Charlotte, Cumberland, Halifax, Henry, Lunenburg, Mecklenburg, Nottoway, Patrick, Pittsylvania, and Prince Edward and the Cities of Danville and Martinsville; (c) the Counties of Accomack, Caroline, Essex, Gloucester, King and Queen, King William, Lancaster, Mathews, Middlesex, Northampton, Northumberland, Richmond, and Westmoreland; and (d) the Counties of Brunswick and Dinwiddie and the City of Petersburg. "Qualified locality" also includes certain real property owned or partly owned by such localities outside of their territorial boundaries.

The bill requires a company to obtain annual certification from the Virginia Economic Development Partnership Authority (the Authority) that the company will have a positive fiscal impact on Virginia, based on consideration of certain factors. It directs the Authority to deny certification to any company that reorganizes for the purpose of taking advantage of the tax benefits provided by the bill.

Generally, the amount of the modification is the value of the company's property and payroll in qualified localities and its sales in Virginia. The bill provides similar modifications for industries that use different apportionment formulas, including motor carriers, financial companies, construction companies, railway companies, manufacturing companies, retailers, and businesses with enterprise data center operations.

Eligibility for the income tax apportionment modifications shall continue for six years following the year in which the company initially makes a modification to its apportionment formula. Continuing eligibility is contingent on the company's maintaining its capital investment and jobs created in qualified localities and obtaining re-certification from the Authority.

The bill permits qualified localities to provide grants and loans to companies that qualify for the modification provided by the bill. The bill also authorizes grants and loans of up to $2,000 per job per year from the Commonwealth's Development Opportunity Fund to an eligible company.

This bill is identical to SB 883.

Full text:
12/29/17  House: Prefiled and ordered printed; offered 01/10/18 18100385D  pdf | impact statement
02/05/18  House: Draft Subcommittee substitute printed to LIS only 18106663D-H1  pdf
02/07/18  House: Committee substitute printed 18106663D-H2  pdf
02/12/18  House: Printed as engrossed 18106663D-EH2  pdf | impact statement
02/27/18  Senate: Committee substitute printed 18107501D-S1  pdf
03/09/18  House: Conference substitute printed 18108193D-H3  pdf
03/20/18  House: Bill text as passed House and Senate (HB222ER)  pdf | impact statement
04/09/18  Governor: Acts of Assembly Chapter text (CHAP0802)  pdf

House committee and floor amendments
Conference amendments

12/29/17  House: Prefiled and ordered printed; offered 01/10/18 18100385D
12/29/17  House: Referred to Committee on Finance
01/30/18  House: Assigned Finance sub: Subcommittee #2
02/05/18  House: Draft Subcommittee substitute printed to LIS only 18106663D-H1
02/07/18  House: Reported from Finance with substitute (19-Y 3-N)
02/07/18  House: Committee substitute printed 18106663D-H2
02/09/18  House: Read first time
02/12/18  House: Read second time
02/12/18  House: Committee substitute agreed to 18106663D-H2
02/12/18  House: Amendment by Delegate Morefield agreed to
02/12/18  House: Amendments by Delegate Habeeb agreed to
02/12/18  House: Pending question ordered
02/12/18  House: Engrossed by House - committee substitute with amendments HB222EH2
02/12/18  House: Printed as engrossed 18106663D-EH2
02/13/18  House: Read third time and passed House (87-Y 12-N)
02/13/18  House: VOTE: PASSAGE (87-Y 12-N)
02/14/18  Senate: Constitutional reading dispensed
02/14/18  Senate: Referred to Committee on Finance
02/27/18  Senate: Reported from Finance with substitute (12-Y 3-N)
02/27/18  Senate: Committee substitute printed 18107501D-S1
02/28/18  Senate: Constitutional reading dispensed (40-Y 0-N)
02/28/18  Senate: Read third time
02/28/18  Senate: Reading of substitute waived
02/28/18  Senate: Committee substitute agreed to 18107501D-S1
02/28/18  Senate: Engrossed by Senate - committee substitute HB222S1
02/28/18  Senate: Passed Senate with substitute (31-Y 9-N)
02/28/18  House: Senate substitute rejected by House 18107501D-S1 (0-Y 95-N)
02/28/18  House: VOTE: REJECTED (0-Y 95-N)
02/28/18  Senate: Senate insisted on substitute (40-Y 0-N)
02/28/18  Senate: Senate requested conference committee
02/28/18  House: Placed on Calendar
02/28/18  House: House acceded to request
02/28/18  Senate: Conferees appointed by Senate
02/28/18  Senate: Senators: Stanley, Hanger, Howell
02/28/18  House: Conferees appointed by House
02/28/18  House: Delegates: Morefield, Hugo, Aird
03/09/18  Conference: Amended by conference committee
03/09/18  House: Conference substitute printed 18108193D-H3
03/09/18  Senate: Conference report agreed to by Senate (37-Y 3-N)
03/09/18  House: Conference report agreed to by House (88-Y 7-N)
03/09/18  House: VOTE: ADOPTION (88-Y 7-N)
03/09/18  House: Reconsideration of conference report agreed to by House
03/09/18  House: Conference report agreed to by House (86-Y 10-N)
03/09/18  House: VOTE: ADOPTION #2 (86-Y 10-N)
03/20/18  House: Enrolled
03/20/18  House: Bill text as passed House and Senate (HB222ER)
03/20/18  House: Signed by Speaker
03/22/18  Senate: Signed by President
03/26/18  House: Enrolled Bill communicated to Governor on March 26, 2018
03/26/18  Governor: Governor's Action Deadline Midnight, April 9, 2018
04/09/18  Governor: Approved by Governor-Chapter 802 (effective 7/1/18)
04/09/18  Governor: Acts of Assembly Chapter text (CHAP0802)