HB 1969

Abstract

Taxation; extension of expiring sunsets. Extends to taxable year 2026: 1. The exemption for discharged loans for eligible veterans currently set to expire January 1, 2026; 2. The credit for amounts paid to another state for income taxes of a pass-through entity currently set to expire January 1, 2026; 3. The standard deduction in an amount equal to $8,500 for single individuals and $17,000 for married persons currently set to revert to $3,000 for single individuals and $6,000 for married persons as of January 1, 2026; 4. The deduction for eligible educator expenses currently set to expire January 1, 2025; 5. The tax credit for low-income taxpayers currently set to expire January 1, 2026; 6. The tax credit for reforestation and afforestation currently set to expire January 1, 2025; 7. The election for eligible owners of pass-through entities to be taxed at the entity level currently set to expire January 1, 2026; 8. The subtractions from the numerators of the property and payroll apportionment factors for eligible companies for (i) property acquired in any qualified locality before January 1, 2025, and (ii) payroll attributable to jobs created within such locality before January 1, 2025; 9. The major business facility job tax credit currently set to expire July 1, 2025; 10. The worker training tax credit for (i) expenses incurred by a business for eligible worker training currently set to expire July 1, 2025, and (ii) direct costs incurred by a business engaged primarily in manufacturing in conducting orientation, instruction, and training in the Commonwealth, relating to the manufacturing activities undertaken by the business currently set to expire January 1, 2025; 11. The tax credit for purchase of machinery and equipment used for advanced recycling and processing recyclable materials currently set to expire January 1, 2025; 12. The tax credit for participating landlords renting qualified housing units (i) in eligible census tracts currently set to expire January 1, 2026, and (ii) in eligible non-metropolitan census tracts currently set to expire January 1, 2026; 13. The tax credit for green and alternative energy job creation currently set to expire January 1, 2025; 14. The tax credit for qualified research and development expenses currently set to expire January 1, 2025; 15. The tax credit for Virginia qualified major research and development expenses currently set to expire January 1, 2025; 16. The exemption from sales and use taxation for gold, silver, or platinum bullion or legal tender coins currently set to expire June 30, 2025; 17. The exemption from sales and use taxation for certain printed materials purchased from an advertising business from a printer within the Commonwealth and distributed outside the Commonwealth before July 1, 2025; and 18. The exemptions from sales and use taxation for (i) parts, engines, and supplies for aviation component parts currently set to expire July 1, 2025, and (ii) prescription medicines and drugs purchased by veterinarians currently set to expire July 1, 2025.

A BILL to amend and reenact §§ 58.1-321, 58.1-322.03, 58.1-332, 58.1-339.8, 58.1-339.13, 58.1-390.3, 58.1-405.1, 58.1-408, 58.1-439, 58.1-439.6:1, 58.1-439.7, 58.1-439.12:04, 58.1-439.12:05, 58.1-439.12:08, 58.1-439.12:11, 58.1-609.1, 58.1-609.6, and 58.1-609.10 of the Code of Virginia, relating to taxation; extension of expiring sunsets; one-year extension for exemptions set to expire for taxable year 2025; exemptions for discharged loans for eligible veterans; credit for amounts paid to another state for income tax paid by a pass-through entity; deduction for eligible educator expenses; subtractions from property and payroll apportionment factors for eligible companies; elections to be taxed at entity level for eligible owners of a pass-through entities; tax credits for reforestation and afforestation, low-income taxpayers, major business facility jobs, worker training, purchase of machinery and equipment used for advanced recycling and processing recyclable materials, green and alternative energy job creation, research and development expenses, major research and development expenses, and participating landlords renting qualified housing units in eligible non-metropolitan census tracts; exemption from sales and use taxation for certain printed materials purchased from an advertising business, parts, engines, and supplies for aviation component parts, prescription medicines and drugs purchased by veterinarians, and gold, silver, or platinum bullion or legal tender coins.