Summary: Work group; feasibility of transitioning to a unitary combined reporting system for corporate income tax purposes. Directs the Division of Legislative Services, in conjunction with the Department of Taxation, to establish a work group to assess the feasibility of transitioning to a unitary combined reporting system for corporate income tax purposes.

Summary: Administration of blighted and derelict propertiesin certain localities. Modifies the definition of "qualifyinglocality" to include any locality with a score of 100 or higher onthe fiscal stress index, as published by the Department of Housingand Community Development in July 2020. Under current law, a qualifyinglocality is one with a score of 107 or higher on the fiscal stress index, as published by the Department using revised data for 2017.Qualifying localities are able to (i) classify blighted and derelict properties as a separate class of taxable property and assess suchproperty at a higher rate and (ii) sell delinquent tax lands sixmonths after the locality has incurred abatement costs for buildingsthat have been condemned, constitute a nuisance, are a derelict building,or are declared to be blighted. The bill adds qualifying localitiesto the list of localities that have different requirements for havinga special commissioner appointed to convey tax-delinquent real estateto the locality in lieu of a public sale at auction.

Summary: Tax exemptions for energy storage systems. Declares that energy storage systems are included in the definition of certified pollution control equipment and facilities, making energy storage systems exempt from state and local taxation. The bill defines "energy storage system" as equipment, facilities, or devices that are capable of absorbing energy, storing it for a period of time, and redelivering that energy after it has been stored. The tax exemption applies only to certain projects with alternating current (AC) storage capacity of more than five megawatts and less than 150 megawatts. The bill also allows localities to assess a revenue share of up to $1,400 per megawatt on energy storage systems. The bill provides that on July 1, 2026, and every five years thereafter, the maximum amount of the revenue share that a locality may impose on energy storage systems as well as certain solar energy projects shall be increased by 10 percent. No increase may be made to any revenue share imposed by a locality on a solar energy project or energy storage systems for which an application has been filed with the locality and such application has been approved prior to January 1, 2021. The bill defines energy storage systems as electric suppliers whose property shall be assessed by the State Corporation Commission.

Summary: Sale of land for delinquent taxes. Extendsfrom 36 to 60 months the time period for which a local tax officialmay suspend an action for the sale of tax delinquent property, which under current law is authorized if the owner enters into an agreementwith the official to pay delinquent taxes in installments. The billalso authorizes an official to suspend an action if a person whois not a party to the action gives notice asserting ownership rights,by virtue of testate or intestate succession, in the property subjectto the action. If a court determines such person has ownership rightsin the property, such person may enter into an installment plan similarto what is authorized under current law. Thebill provides that a final court order confirming sale of tax delinquentproperty shall not be entered sooner than the later of (i) 90 daysafter the official gives notice of the action or (ii) 90 days afterthe official receives notice from a person who is not a party tothe action asserting ownership rights.

Summary: Revenue share for solar energy projects and energy storage systems. Allows localities to assess a revenue share of up to $1400 per megawatt on energy storage systems. The bill provides that on July 1, 2026, and every five years thereafter, the maximum amount of the revenue share that a locality may impose on certain solar energy projects and energy storage systems shall be increased by 10 percent. No increase may be made to any revenue share imposed by a locality on a solar energy project or energy storage systems for which an application has been filed with the locality and such application has been approved prior to January 1, 2021.

Summary: Local gas severance tax; sunset date. Extends the sunset date from January 1, 2022, to January 1, 2024, for authority to impose an additional local gas severance tax that is dedicated to (i) the local Coal and Gas Road Improvement Fund; (ii) the Virginia Coalfield Economic Development Fund; and (iii) water, sewer, and natural gas systems and lines.

Summary: Tax credit; agricultural best management practices. Creates an enhanced individual and corporate income tax credit beginning in taxable year 2021 for the implementation of certain agricultural best management practices by the taxpayer that are required as part of a certified resource management plan. The enhanced tax credit is equal to 50 percent of the first $100,000 expended in implementing certain agricultural best management practices, and each amount shall be consistent with the rate offered for each eligible practice under the Virginia Agricultural Best Management Practices Cost-Share Program. The bill retains a tax credit for 25 percent of expenses made for all other agricultural best management practices that are not eligible for the enhanced credit rate, but increases the maximum amount of expenses to which one can apply the 25 percent credit from $70,000 to $100,000. A taxpayer may not claim credit for the same practice in the same management area under both the 25 percent and enhanced 50 percent credits. The aggregate per taxpayer amount of credit claimed shall not exceed $75,000. The total combined amount of credits shall not exceed $2 million annually.

Summary: Individual and corporate income tax credit;employers of National Guard members and self-employed National Guardmembers. Provides for taxable years 2021 through 2025 a nonrefundabletax credit against individual and corporate income taxes for (i)wages paid by an employer to an employee who is a Virginia NationalGuard member or (ii) income of a self-employed Virginia NationalGuard member attributable to his business. The amount of the creditshall be 25 percent if such member was in a military pay status for65 days or more during such taxable year or 15 percent if such memberwas in a military pay status for 45 days or more during such taxableyear. The credit shall not be allowed if such member was in a militarypay status for fewer than 45 days during such taxable year.

Summary: Facilitated enrollment program. Directs the Department of Taxation to include space on the appropriate individual income tax forms for voluntary inclusion of personal and contact information. Such information may be shared with the Department of Medical Assistance Services, the Department of Social Services, or the Virginia Health Benefit Exchange, as applicable, for use in determining eligibility for certain programs. Beginning with tax year 2022, the Department of Taxation shall also include a checkoff box for taxpayers to indicate their consent to the sharing of tax information with the Department of Medical Assistance Services and the Department of Social Services. Beginning with tax year 2023, there shall also be included a checkoff box for taxpayers to indicate their consent to the sharing of tax information with the Virginia Health Benefit Exchange. The bill contains provisions allowing disclosure of such information in accordance with the act. The bill also directs the Virginia Health Benefit Exchange to, in consultation with other government agencies and stakeholders, identify systems, policies, and practices to facilitate eligibility determinations and enrollment.

Summary: Sunset of coal tax credits. Sunsets the Coal Employment and Production Incentive Tax Credit and Coalfield Employment Enhancement Tax Credit after tax year 2021 and prohibits the allocation of such credits on and after January 1, 2022. The bill provides that if credits were earned prior to January 1, 2022, the credit holder may claim the credits in subsequent tax years pursuant to the applicable carryover requirements of current law; however, such credit holders would be limited to claiming $1 million in carryover credits per taxable year.