Summary: Taxation; rate of interest. Provides that(i) the rate of interest on omitted taxes and assessments is equalto the Underpayment Rate established by the Internal Revenue Codeand (ii) the rate of interest on refunds is equal to the OverpaymentRate for noncorporate taxpayers established by the Internal RevenueCode. Current law provides that (a) the rate of interest on omittedtaxes and assessments is equal to the Underpayment Rate plus twopercent and (b) the rate of interest on refunds is equal to the OverpaymentRate for noncorporate taxpayers plus two percent.

Summary: Pass-through entity tax; penalty waiver.Directs the Department of Taxation to waive penalties imposed onany pass-through entity paying the pass-through entity income taxfor taxable years beginning on and after January 1, 2021, but beforeJanuary 1, 2024. The waiver shall not apply to any penalty imposeddue to a false or fraudulent action by the taxpayer with the intentionof evading the tax.

Summary: Assessment of omitted taxes; erroneous payments. Provides that any retail sales tax payment erroneously remitted by a taxpayer to the Department of Taxation shall be applied to the taxpayer's delinquent use tax accounts. The taxpayer must provide evidence of the erroneous sales tax collected and remitted in each transaction. The provisions of this bill do not apply in the case of (i) the taxpayer already applying for and receiving the relief described in this bill or (ii) a false or fraudulent action by the taxpayer with the intention of evading the payment of the tax. Further, the taxpayer must show that the erroneous retail sales tax has been refunded to the purchaser or credited to the purchaser's account prior to receiving a refund from Department of Taxation. This bill is identical to SB 709.

Summary: Motor vehicle sales and use tax; exemptions;transfers; limited liability companies. Provides that no motor vehicle sales and use tax shall be imposed on vehicle transfers from(i) an individual, partnership, or limited liability company to acorporation or limited liability company or (ii) from a corporationor limited liability company to an individual, partnership, or limitedliability company if (a) the transfer is incidental to the formation,organization, or dissolution of a corporation or limited liabilitycompany in which the individual, partnership, or limited liabilitycompany holds the majority interest in both entities and (b) thetransfer to a limited liability company is not a precursor to a transferof control of the assets of the company to avoid motor vehicle salesand use taxes. Under current law,transfers from (1) an individual or partnership to a corporationor limited liability company or (2) from a corporation or limitedliability company to an individual or partnership are exempt fromthe motor vehicle sales and use tax if the transfer is incidentalto the formation, organization, or dissolution of a corporation orlimited liability company in which the individual or partnershipholds the majority interest.

Summary: Retail sales and use tax; commercial and industrial exemptions; sunset. Extends the sunset from July 1, 2024, toJune 30, 2025, for the retail sales and use tax exemption of certainmaterials and equipment used in the drilling, extraction, or processingof natural gas or oil and the reclamation of the well area.

Summary: Tax credit; solar energy equipment. Establishesa nonrefundable income tax credit for taxable years 2024 through2028 for individuals who incur allowable expenses, as defined inthe bill, for the purchase and installation of solar energy equipment,as defined in the bill. An individual who properly claims this creditshall be allowed a credit in the amount of up to 15 percent of thecost of such equipment and allowable expenses, up to $1,000.

Summary: Content manufacturing tax credit. Removes the sunset for the motion picture tax credit, which currently is set to expire after taxable year 2026, and expands and redesignates the tax credit as the content manufacturing tax credit. The bill increases the total amount of credits that can be allocated to taxpayers to $46.5 million beginning in fiscal year 2024; however, should less than $100 million worth of certain new investments, as described by the bill, occur in Virginia by January 1, 2027, the cap will be reduced to $10 million per fiscal year. The bill also amends the definition of the "qualifying expenses" eligible for the content manufacturing tax credit to mean certain amounts spent in connection with the production of an eligible project filmed in the Commonwealth. The bill defines "eligible project" to be the production of a motion picture or an episodic television series.

Summary: Agricultural best management practices tax credit;agricultural equipment purchase tax credit; sunset date. Extendsfrom January 1, 2025, to January 1, 2030, the sunset date of theindividual and corporate agricultural best management practices incometax credit and extends from January 1, 2026, to January 1, 2030, the sunset date of the individual and corporate income tax credit forthe purchase of conservation tillage and precision agricultural applicationequipment.

Summary: Portable benefit accounts; tax credit.Authorizes a Virginia resident who has worked as an independent contractorto establish a portable benefit account. Under the bill, a portable benefit account offered through and administered by a bank, creditunion, or other depository institution and distributions from theaccount may be used for the payment of various health-related costs.The bill establishes a nonrefundable tax credit for taxable years2024 through 2028 for individuals who contribute to a portable benefitaccount.

Summary: Eligible educator income tax deduction; homeschool instruction income tax credit. Increases from $500 to$1,500 for tax years 2024 through 2026 the amount of income tax deductioncertain eligible educators may deduct for qualifying expenses. The bill also creates a nonrefundable taxcredit for taxable years 2024 through 2028 for amounts paid by anindividual or married couple filing jointly for their child receivinghome instruction for (i) instruction-related materials, includingtextbooks, workbooks, and supplies, or (ii) courses or programs used in home instruction. The bill provides that the credit equalsthe lesser of the amount actually paid during the year for such costsor $3,000.

Summary: Adoption tax credit. Creates a tax creditfor taxable years 2024 through 2028 that may be claimed by an individualor married couple filing jointly for qualified adoption expenses,as defined in the bill. The bill imposes certain limitations onwho may claim this credit and how much credit may be claimed basedon a taxpayer's Virginia adjusted gross income.

Summary: Research and development expenses tax credits. Creates a step-rate reimbursement structure for the major research and development expenses tax credit in an amount equal to (i) 10 percent, up to the first $1 million, of the difference between (a) Virginia qualified research and development expenses paid or incurred by the taxpayer during the taxable year and (b) 50 percent of the average Virginia qualified research and development expenses paid or incurred by the taxpayer for the three taxable years immediately preceding the taxable year for which the credit is being determined and (ii) five percent of such difference in excess of $1 million. Beginning in taxable year 2023, the bill also (a) imposes an annual per taxpayer major research and development expenses tax credit cap of $300,000, except that such cap increases to $400,000 if the Virginia qualified research was conducted in conjunction with a public or private institution of higher education in the Commonwealth, (b) reduces from $24 million to $16 million the aggregate cap on the major research and development expenses tax credit granted for each fiscal year, and (c) increases from $7.77 million to $15.77 million the aggregate cap on the research and development expenses tax credit granted for each fiscal year beginning in taxable year 2023.

Summary: Tax credit for purchase of mobile machineryand equipment used by road contractors for processing recyclableasphalt materials on pavements and roadways. Creates a nonrefundabletax credit for taxable years 2025 through 2029 in an amount equalto 20 percent of the purchase price paid, as defined in the bill,during the taxable year for machinery and equipment used to reclaim,recycle, or reprocess existing asphalt materials from pavements androadways. The bill requires a taxpayer to submit invoices with anincome tax return verifying the amount of purchase price paid forsuch machinery and equipment. The bill provides a $3 million aggregateannual cap on the number of credits to be distributed, as administeredby the Department of Taxation. Any credit not used for the taxableyear in which the purchasing price for recycling machinery was paidmay be carried over for the next 10 years until the total creditamount is used.

Summary: Electric vehicle charging equipment tax credit. Provides an income tax credit for the costs of installing electricvehicle charging equipment at a gas station. The credit shall extendfor five years once claimed. For the first year of the credit, theamount of the credit shall be 100 percent of the allowable costs,defined in the bill, which are incurred in the taxable year or $5,000,whichever is less. For the subsequent four years of the credit, theamount of the credit shall be one percent of the allowable costsincurred by the taxpayer in the taxable year.

Summary: Income tax; Foreign Service retirement benefits subtraction. Establishes for certain individuals receiving ForeignService retirement benefits an income tax subtraction of such benefitsup to $5,000 in taxable year 2024, up to $10,000 in taxable year2025, up to $15,000 in taxable year 2026, and up to $20,000 in taxableyear 2027 and each taxable year thereafter. The bill defines ForeignService retirement benefits as any retirement income received byan individual for employment in the Foreign Service of the UnitedStates and as an eligible member of the Foreign Service Retirementand Disability System or the Foreign Service Pension System.

Summary: Virginia income tax subtractions; disabilityincome. Allows an individual who claims an income tax subtractionfor disability income to also claim an income tax deduction for taxpayersage 65 and older.

Summary: Income tax subtraction; professional firefighterpension. Establishes an income tax subtraction for up to $20,000of firefighter benefits in taxable year 2024, up to $30,000 in taxableyear 2025, and up to $40,000 in taxable year 2026 and each year thereafter.The bill defines firefighter benefits to include retirement incomerelated to firefighting services and benefits paid to the survivingspouse of a firefighter whose death occurred in the line of duty.

Summary: Income tax subtractions; Virginia NationalGuard military pay. Creates an income tax subtraction for military pay received by an individual for active service in the VirginiaNational Guard during either (i) an out-of-state deployment or (ii)a state of emergency declared by the Governor.

Summary: Income tax subtraction; military retirementbenefits; uniformed services. Expands the definition of "militarybenefits" to include an income tax subtraction of retirement incomereceived for service in the uniformed services of the United States,which includes the United States Armed Forces, the commissioned corps of the National Oceanic and Atmospheric Administration, and the commissionedcorps of the United States Public Health Service. Under current law,the subtraction is only allowed for military retirement income receivedfor service in the United States Armed Forces.

Summary: Income tax; deduction for qualified businessincome. Establishes, beginning with tax year 2024, an individualincome tax deduction in an amount equal to 50 percent of certainfederal qualified business income deductions, excluding qualified real estate investment trust dividends.

Summary: Corporate income tax; apportionment. Allows,for taxable years beginning on and after January 1, 2024, for corporationsto apportion their income to the Commonwealth using the single salesfactor method. The bill provides that such apportionment method shallbe used only if the corporation makes an election to do so.

Summary: Corporate income tax; distribution of revenues;state parks. Requires five percent beginning July 1, 2024, ofall corporate income tax revenues to be distributed to the StatePark Conservation Resources Fund to provide (i) free entry to Virginia state parks and (ii) the conservation, development, maintenance,and operations of state parks acquired or held by the Departmentof Conservation and Recreation as provided in the appropriation act.The bill provides that such distribution shall not reduce the totalamount of annual appropriations for the Department and the Fund belowthe total amounts appropriated for the most recent fiscal year endingbefore July 1, 2024, except as provided by a subsequent appropriationact.