Guideline Development - Research and Development Credit

During the 2011 Session, the Virginia General Assembly passed legislation that created a refundable income tax credit for qualified research and development expenses paid or incurred during the taxable year. The credit amount is equal to

1. 15 percent of the first $167,000 in Virginia qualified research and development expenses; or
2. 20 percent of the first $175,000 in Virginia qualified research and development expenses if the research was conducted in conjunction with a Virginia public college or university.

The total amount tax credits allowed is $5 million. If the total amount of tax credits is less than the $5 million limit, TAX will allocate the remaining amount to the taxpayers already approved for the tax credits.

The Department of Taxation (“TAX”) is developing guidelines to carry out the provisions of this credit, including rules regarding the location where the research and development is performed, the residence or business location of the taxpayer or taxpayers conducting the research and development and the location where supplies used in the research and development are consumed.

Legislative Documents 

HB 1447     Text     PDF     Fiscal Impact Statement
SB 1326     Text     PDF     Fiscal Impact Statement

Guideline Development Documents

Workplan (PDF 37 KB)

Guidelines (PDF 104 KB)
 

Last Updated 5/6/2013 11:16