Summary: Research and development tax credits. Provides that the research and development expenses tax credit and the major research and development expenses tax credit shall be available against the bank franchise tax for taxable years beginning on and after January 1, 2021. Under current law, the credits are available only against the individual and corporate income tax.

Summary: Personal property tax exemption; motor vehicle of a disabled veteran. Provides that one motor vehicle of a veteran who has a 100 percent service-connected, permanent, and total disability shall be exempt from local taxes. This bill is the enabling legislation for a constitutional amendment ratified by the voters of the Commonwealth at the November 2020 general election.

Summary: Conformity of the Commonwealth's taxation system with the Internal Revenue Code. Advances Virginia's date of conformity with the Internal Revenue Code from December 31, 2019, to December 31, 2020. The bill deconforms from the suspension of the overall limitation on itemized deductions and the reduction in the medical expense deduction floor for taxable year 2017 and taxable years on and after January 1, 2019, and from the provisions of the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) related to the net operating loss limitation and carryback, a loss limitation applicable to taxpayers other than corporations, the limitation on business interest, and certain loan forgiveness and other business financial assistance. The bill provides an individual and corporate income tax deduction or subtraction, as applicable, of up to $100,000 for Rebuild Virginia grants and certain amounts related to Paycheck Protection Program loans.

Summary: Port of Virginia tax credits; sunset. Extendsthe sunset for the international trade facility tax credit, thebarge and rail usage tax credit, and the port volume increase taxcredit from taxable years before January 1, 2022, to taxable yearsbefore January 1, 2025.

Summary: Tax credit; agricultural best management practices. Creates an enhanced individual and corporate income tax credit for taxable years 2021 through 2024 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 75 percent credits. The aggregate amount of credit claimed per taxpayer shall not exceed $75,000 per year, and the aggregate amount of individual and corporate credits claimed among all taxpayers and credits shall not exceed $2 million per year. The bill sunsets the existing agricultural best management practices tax credits after taxable year 2024.

Summary: Tax credits of agricultural equipment. Establishes for taxable years 2021 through 2024 a refundable individual and corporate income tax credit for 25 percent of expenditures, up to a maximum of $17,500, made for the purchase of conservation tillage and precision agriculture equipment certified by the Virginia Soil and Water Conservation Board as reducing soil compaction or improving precision of pesticide and fertilizer application or injection. The bill expires the existing individual and corporate income tax credits for conservation tillage equipment and purchase of advanced technology pesticide and fertilizer application equipment after taxable year 2020. Under current law, an individual or corporate taxpayer is allowed nonrefundable credits of up to $4,000 for conservation tillage equipment purchases and up to $3,750 for advanced technology pesticide and fertilizer application equipment purchases, which credits may be carried over for five years.

Summary: Additional local sales and use tax to supportschools. Adds Isle of Wight County to the list of localitiesthat, under current law, are authorized to impose an additional localsales and use tax at a rate not to exceed one percent, with the revenueused only for capital projects for the construction or renovationof schools.

Summary: Virginia housing opportunity tax credit.Establishes, starting in taxable year 2021, a Virginia housing opportunitytax credit, which is equal to the amount of the federal low-incomehousing tax credit allocated or allowed by the Virginia Housing DevelopmentAuthority to a low-income building that is eligible for the federalcredit. The credit would be nonrefundable and could be carried forward for up to five years.

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. This bill is identical to HB 2006.

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 Coal Employment and Production Incentive Tax Credit 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. The bill directs the Department of Mines, Minerals and Energy to convene a stakeholder process to report by December 1, 2021 on recommendations for how the Commonwealth can provide economic transition support to the coalfield region.

Summary: Local cigarette taxes; regional cigarette tax boards. States that it is the policy of the Commonwealth, where practical, to encourage local cigarette stamping and tax collection to be accomplished through regional cigarette tax boards, defined in the bill. The bill directs the Department of Taxation to establish a task force to develop methods for modernizing the local cigarette tax collection system and provide assistance as appropriate to localities seeking to form new regional cigarette tax boards.

Summary: Retail sales and transient occupancy taxes on room rentals. Provides that retail sales and hotel taxes on transient room rentals shall be computed on the basis of the total charges or the total price paid for the use or possession of the room. For those cases in which a hotel or similar establishment contracts with an intermediary to facilitate the sale of the room and the intermediary charges the customer for the room and such facilitation efforts, the bill requires the intermediary to separately state the taxes on the bill or invoice provided to the customer and to collect the taxes based upon the total charges or the total price paid for the use or possession of the room. The bill provides that an estimated amount equivalent to the sales tax revenue attributable to the charge for the service provided by the intermediary shall be dedicated to the Virginia Tourism Authority to administer grants for tourism promotion.

Summary: Sales tax; exemption for personal protectiveequipment; emergency. Establishes a retail sales and use taxexemption for personal protective equipment, defined in the bill.The exemption would be available to any business that has in placea COVID-19 safety protocol that complies with the Emergency TemporaryStandard promulgated by the Virginia Department of Labor and Industryand that meets other criteria. The exemption would sunset one dayafter the first day following the expiration of the last executiveorder issued by the Governor related to the COVID-19 pandemic andthe termination of the COVID-19 Emergency Temporary Standard andany permanent COVID-19 regulations adopted by the Virginia Safetyand Health Codes Board. The bill contains an emergency clause.

Summary: Sales and use tax exemption for data centers. Reduces the job creation requirement to qualify for the sales and use tax exemption for data centers in a distressed locality from 25 to 15 jobs. Under current law, such data centers must create at least 25 new jobs. The bill also redefines what criteria are used to identify a distressed locality; under the bill, a locality qualifies as distressed if it has an unemployment rate that is greater than the statewide unemployment rate and a poverty rate that exceeds the statewide poverty rate. The bill requires all data centers claiming the exemption to report certain information to the Virginia Economic Development Partnership Authority (the Authority). The Department of Taxation, in collaboration with the Authority, would aggregate and publish such information biennially.

Summary: Combined transient occupancy and food and beveragetax; technical amendments. Provides that, for purposes of thecombined transient occupancy and food and beverage tax that is currentlyauthorized for Rappahannock and Madison Counties, the rate limitfor such tax shall be the same as if the two taxes were imposed separately.The bill also eliminates the referendum requirement for the foodand beverage component of the combined tax, consistent with Chapters1214 and 1263 of the Acts of Assembly of 2020, which eliminated thereferendum requirement for the food and beverage tax generally.