Meets on: Monday and Wednesday at 8:30 a.m. (Monday) Subcommittees meeting in lieu of full committee – (Wednesday) House Committee Room 1/2 hour after adjournment in House Committee Room
Members: Vivian Watts (Chair) – Hala Ayala – Kathy Byron – Ronnie Campbell – Lee Carter – Budd Fowler – Todd Gilbert – Steve Heretick – Sally Hudson – Mark Keam – Kaye Kory – Joe McNamara – Martha Mugler – Kathleen Murphy – Bobby Orrock – Charles Poindexter – Don Scott – Rip Sullivan – Lee Ware – Tommy Wright
12 Democrats and 8 Republicans
- Subcommittee #1
- Subcommittee #2
- Subcommittee #3
Virginia Legislative Information System
Note: Details on bills passed below are in the Heading “Bills passed”
- HB 1763 Tax credit; agricultural best management practices.
- HB 1774 Tangible personal property taxes;classification of certain motor vehicles, trailers, & semitrailers.
- HB 1800 Budget Bill.
- HB 1899 Coal tax credits; sunset dates.
- HB 1916 Research and development tax credits.
- HB 1935 Income tax, state; conformity with the Internal Revenue Code.
- HB 1969 Administration of blighted and derelict properties; modifies definition of “qualifying locality.”
- HB 1979 Electric vehicle rebate program; creation and funding, report, sunset date.
- HB 1999 Tax Commissioner; waiver of accrual of interest in the event that Gov. declares state of emergency.
- HB 2006 Energy storage systems; definitions, tax exemption, revenue share for systems. .
- HB 2059 Delinquent returns; enforcement, when approval required.
- HB 2060 Online portal for tax practitioners; Department of Taxation shall analyze prospect of establishing.
- HB 2118 Virginia Electric Vehicle Grant Fund and Program; created, report.
- HB 2185 Retail Sales and Use Tax; exemption for personal protective equipment.
- HB 2273 Data centers; sales and use tax exemption, criteria, report.
- HB 2293 Local gas severance tax; extends sunset date.
Virginia House of Delegates Video Streaming
January 27, 2021 (Short)
Delegate Morefield sponsored a bill that which extends the sunset date from January 1, 2022 to January 1, 2024 to impose an additional local gas severance tax. Voted to report bill 21 – Yeas 0 – Nays.
January 27, 2021 (Short)
Delegate Heretick sponsored a bill that which emphasizes that energy storage systems are a separate class of property and exempt from state and local taxation. Voted to report bill with substitute 18 – Yeas 2 – Nays 1 – Abs.
January 27, 2021 (Short)
Delegate Sickles sponsored a bill that which directs the Department of Taxation to include space on individual income tax forms for voluntary inclusion of personal and contract information. Voted to report bill with technical amendments 19 – Yeas 2 – Nays.
Meets on: Monday at 8:30 a.m. in Shared Committee Room
Meets on: Monday at 8:30 a.m. in House Room 1
Meets on: Friday at 7:30 a.m. in House Room 1
Bills in committee
Bills reported out
HB 1969 – Administration of blighted and derelict properties (January 27, 2021)
- Delegate Carr sponsored a bill that which modifies the definition of “qualifying locality” to include any locality with a score of 100 or higher on the fiscal stress index.
- Voted to report bill 16 – Yeas 0 – Nays.
HB 2293 – Local gas severance tax; extends sunset date (January 27, 2021)
- Delegate Morefield sponsored a bill that which extends the sunset date from January 1, 2022 to January 1, 2024 to impose an additional local gas severance tax.
- Voted to report bill 21 – Yeas 0 – Nays.
HB 2006 – Energy storage systems; tax exemptions (January 27, 2021)
- Delegate Heretick sponsored a bill that which emphasizes that energy storage systems are a separate class of property and exempt from state and local taxation.
- Voted to report bill with substitute 18 – Yeas 2 – Nays 1 – Abs.
HB 2269 – Solar energy revenue share for projects (January 27, 2021)
- Delegate Heretick sponsored a bill that which provides that every five years the maximum amount of the revenue that a locality may impose on certain solar energy projects shall be adjusted by the CPI-U.
- Voted to report bill with substitute 18 – Yeas 2 – Nays.
HB 1763 – Tax credit; agricultural best management practices (January 27, 2021)
- Delegate Heretick sponsored a bill that which allows the creation of an enhanced individual corporate income tax beginning in taxable year 2021 for agricultural best management practices.
- Voted to report bill and refer to Appropriations Committee 21 – Yeas 0 – Nays.
HB 1884 – Facilitated enrollment program (January 27, 2021)
- Delegate Sickles sponsored a bill that which directs the Department of Taxation to include space on individual income tax forms for voluntary inclusion of personal and contract information
- Voted to report bill with technical amendments 19 – Yeas 2 – Nays.
HB 1899 – Coal tax credits; sunset date (January 27, 2021)
- Delegate Hudson sponsored a bill that which extends the Coal Employment and Production INcentive Tax Credit and Coalfield Employment Enhancement Tax Credit after tax year 2020.
- Vote to report bill with substitute 13 – Yeas 8 – Nays.
- HB 1763 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. This bill is identical to SB 1162.
- HB 1774 Tangible personal property taxes;classification of certain motor vehicles, trailers, & semitrailers. Provides that the separate class of property for rate purposes that includes motor vehicles, trailers, and semitrailers with a gross vehicle weight of 10,000 pounds or more used by a motor carrier engaged in interstate commerce on a for-hire basis shall also include such vehicles used to transport passengers. Under current law, this class of property only includes such vehicles if they are used to transport property.
- HB 1800 Budget Bill. Budget Bill. Amends Chapter 56 of the 2020 Special Session I Acts of Assembly.
- HB 1899 Coal tax credits; sunset dates. 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 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. This bill is identical to SB 1252.
- HB 1916 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. This bill is identical to SB 1112.
- HB 1935 Income tax, state; conformity 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 adds exceptions to such conformity for 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 for 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, and the limitation on business interest. The bill also includes an individual income tax deduction in taxable year 2020 for business expenses funded with forgiven Paycheck Protection Program loans up to $25,000 and an individual income tax subtraction in taxable year 2020 for up to $25,000 in Rebuild Virginia grants.
- HB 1969 Administration of blighted and derelict properties; modifies definition of “qualifying locality.” Modifies the definition of “qualifying locality” to include any locality with a score of 100 or higher on the fiscal stress index, as published by the Department of Housing and Community Development in July 2020. Under current law, a qualifying locality 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 such property at a higher rate and (ii) sell delinquent tax lands six months after the locality has incurred abatement costs for buildings that have been condemned, constitute a nuisance, are a derelict building, or are declared to be blighted. The bill adds qualifying localities to the list of localities that have different requirements for having a special commissioner appointed to convey tax-delinquent real estate to the locality in lieu of a public sale at auction.
- HB 1979 Electric vehicle rebate program; creation and funding, report, sunset date. Creates a rebate program for the purchase or lease of new and used electric vehicles, to be administered by the Department of Mines, Minerals and Energy. A purchaser or lessee of a new or used electric vehicle would receive a $2,500 rebate at the time of purchase, and a purchaser or lessee with an annual household income that does not exceed 300 percent of the federal poverty level would be entitled to an additional $2,000 rebate for a new electric vehicle and $500 for a used electric vehicle beginning in taxable year 2022. The bill also establishes an Electric Vehicle Rebate Advisory Council to oversee the Electric Vehicle Rebate Program and to make recommendations regarding its implementation. The Director of the Department of Mines, Minerals and Energy is required to report annually to the Governor and the General Assembly regarding the Program. The program expires on January 1, 2027.
- HB 1999 Tax Commissioner; waiver of accrual of interest in the event that Gov. declares state of emergency. Authorizes the Tax Commissioner to waive interest for any class of taxpayers when he finds that imposing interest has caused, or would cause, undue hardship to such class of taxpayers because of a natural disaster or other reason. The bill allows the Tax Commissioner to grant such waiver only if the Governor declares a state of emergency in the Commonwealth with respect to such natural disaster or other reason.
- HB 2006 Energy storage systems; definitions, tax exemption, revenue share for 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.
- HB 2059 Delinquent returns; enforcement, when approval required. Requires the Department of Taxation to request taxpayers who have failed to file tax returns when due to prepare and file such returns except where there is an indication that the taxpayer willfully failed to file the required returns or if there is an indication of fraud. All delinquent returns submitted by the taxpayer shall be enforced pursuant to factors outlined in the bill and through delinquency procedures for not more than six years of the taxpayer’s returns. The approval of a manager designated by the Commissioner is required if the enforcement activity exceeds the six-year period.
- HB 2060 Online portal for tax practitioners; Department of Taxation shall analyze prospect of establishing. Directs the Department of Taxation to analyze the prospect of establishing an online portal allowing access to taxpayer information for tax practitioners who possess a valid Power of Attorney and Declaration of Representative form for each client for whom such tax practitioner seeks to access such taxpayer information. The Department shall examine similar systems from the Internal Revenue Service or other states and also analyze cybersecurity concerns in such systems. The bill requires a report to the General Assembly no later than January 1, 2021.
- HB 2118 Virginia Electric Vehicle Grant Fund and Program; created, report. Establishes the Electric Vehicle Grant Fund and Program for the purpose of (i) awarding grants on a competitive basis to public school divisions for (a) assisting with costs of replacing diesel school buses with electric school buses; (b) the implementation of recharging infrastructure or other infrastructure needed to charge or maintain such electric school buses; and (c) workforce development and training to support the maintenance, charging, and operation of such electric school buses and (ii) projects by public, private, and non-profit Virginia entities to assist with replacing diesel-fueled vehicles and machinery with electric vehicles. No allocation of funds shall be made to the Fund or the Program unless federal or nonstate funds are available to cover the entire cost of such allocation. The bill contains provisions relating to grant applications, priority, awards, and uses. The Department of Environmental Quality shall convene a stakeholder workgroup to develop recommendations for establishing and administering the Fund and Program and shall report the workgroup findings to the General Assembly.
- HB 2185 Retail Sales and Use Tax; exemption for personal protective equipment. Establishes a retail sales and use tax exemption for personal protective equipment, defined in the bill. The exemption is available to any business that has in place a COVID-19 safety protocol that complies with the Emergency Temporary Standard promulgated by the Virginia Department of Labor and Industry and that meets other criteria. The exemption sunsets on the first day following the expiration of the last executive order issued by the Governor related to the COVID-19 pandemic and the termination of the COVID-19 Emergency Temporary Standard and any permanent COVID-19 regulations adopted by the Virginia Safety and Health Codes Board. The bill contains an emergency clause and is identical to SB 1403.
- HB 2273 Data centers; sales and use tax exemption, criteria, report. Reduces to four new jobs, for purposes of qualifying for the sales and use tax exemption for data centers, the job creation requirement for a data center in a distressed locality. Under current law, such data centers must create at least 25 new jobs. The bill lowers the amount of investment needed to qualify for the exemption from $150 million to $1.9 million for data centers that qualify for the reduced jobs requirement. The bill also redefines what criteria are used to identify a distressed locality such that a locality qualifies as distressed if it has an unemployment rate that is greater than the statewide unemployment rate and it also has a poverty rate that exceeds the statewide poverty rate. The bill requires all data centers claiming the exemption to submit an annual report detailing certain information to the Virginia Economic Development Partnership Authority (the Authority). Finally, the requires the Department of Taxation (the Department), in collaboration with the Authority to publish a biennial report on the exemption. Such report by the Department shall not include any unaggregated or other information that could be used to identify a business or individual.
- HB 2293 Local gas severance tax; extends 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.
Commissions & Boards
Joint Legislative Audit & Review Commission
The Joint Legislative Audit and Review Commission (JLARC) is a key component of the legislative oversight function in Virginia. Legislative oversight is an important part of government accountability. It is how the Virginia General Assembly ensures that the funds it has appropriated are used effectively and efficiently by state and local agencies. Legislative oversight is also how the General Assembly assesses the performance of the agencies and programs it creates.
Auditor of Public Accounts (APA)
The Auditor of Public Accounts (APA) is the legislative external auditor for the Commonwealth of Virginia’s agencies, colleges, universities and municipal courts.
Governor’s Advisory Council on Revenue Estimates
Review revenue estimates with respect to economic assumptions and the general climate of the Commonwealth.
Joint Subcommittee on Local Government Fiscal Stress
The goals and objectives of the Joint Subcommittee will be to review (i) savings opportunities from increased regional cooperation and consolidation of services, including by jointly operating or merging small school divisions; (ii) local responsibilities for service delivery of state-mandated or high priority programs, (iii) causes of fiscal stress among local governments, (iv) potential financial incentives and other governmental reforms to encourage increased regional cooperation; and (v) the different taxing authorities of cities and counties.
Joint Subcommittee to Evaluate Tax Preferences
To oversee the evaluation of Virginia’s tax preferences, including but not limited to tax credits, deductions, subtractions, exemptions, and exclusions.
Board of Trustees Veterans Services Foundation
The Foundation shall (i) administer the Veterans Services Fund (the Fund), (ii) provide funding for veterans services and programs in the Commonwealth through the Fund, and (iii) raise revenue from all sources including private source fundraising to support the Fund.