Bill Text: VA HB551 | 2024 | Regular Session | Prefiled
Bill Title: Income tax, corporate; apportionment of income using single sales factor method.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-02-13 - Left in Finance [HB551 Detail]
Download: Virginia-2024-HB551-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §58.1-408 of the Code of Virginia is amended and reenacted as follows:
§58.1-408. What income apportioned and how.
A. The Virginia taxable income of any corporation, except those subject to the provisions of §58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422, 58.1-422.1, 58.1-422.2, or 58.1-422.3, excluding income allocable under §58.1-407, shall be apportioned to the Commonwealth as follows:
1. Except as provided in subdivision 2, by multiplying such income by a fraction, the numerator of which is the property factor plus the payroll factor, plus twice the sales factor, and the denominator of which is four; however, where the sales factor does not exist, the denominator of the fraction shall be the number of existing factors and where the sales factor exists but the payroll factor or the property factor does not exist, the denominator of the fraction shall be the number of existing factors plus one.
2. For taxable years beginning on and after January 1, 2024, by multiplying such income by the sales factor. However, the provisions of this subdivision shall apply only if the taxpayer makes an election to apportion its income using the sales factor alone. If the taxpayer makes such election, the taxpayer may not revoke the election for a period of three taxable years. If the taxpayer does not make such an election, its income shall be apportioned pursuant to subdivision 1.
B. Any eligible company, as defined in §58.1-405.1, may subtract from the numerator of the corresponding factor the value of its (i) property acquired in any qualified locality or qualified localities, as defined in §58.1-405.1, on or after January 1, 2018, but before January 1, 2025; (ii) payroll attributable to jobs created on or after January 1, 2018, but before January 1, 2025, in any qualified locality or qualified localities; and (iii) sales in the Commonwealth during the taxable year. Such eligible company may make such modification for the taxable year in which it first becomes eligible and for the six subsequent, consecutive taxable years, except for any year in which the eligible company's (a) total, cumulative new capital investment falls below the applicable initial threshold or (b) number of new jobs falls below the applicable initial threshold.
