Bill > HB1461

This bill establishes new tax credits for companies involved in microchip and semiconductor manufacturing and their supply chains in Virginia, aiming to incentivize significant investment and job creation within the state. To qualify for these credits, a company must make a substantial capital investment of at least $400 million, create a minimum of 100 new full-time jobs, pay prevailing wages, and commit to investing $50 million in community initiatives, all within a 10-year period between January 1, 2026, and December 31, 2036. The bill introduces three specific refundable tax credits, meaning any excess credit amount will be paid back to the company, for taxable years 2026 through 2030: a credit equal to 5% of capital investment expenditures, a 6% credit for child care services expenditures, and a 7.5% credit on the gross wages paid for each new job created. The Virginia Economic Development Partnership Authority will play a role in evaluating these projects, and companies will be required to submit and receive approval for a community investment plan outlining their commitments to worker and community development.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB1461