House of Delegates Speak

Public Comments for 02/10/2021 Finance

SB1112 - Research and development expenses; tax credit available against the bank franchise tax.

Last Name: Bruning Organization: Virginia Bankers Association Locality: Glen Allen

Madam Chair and Members of the Committee, the VBA strongly supports Senator Locke's SB 1112. The bill is identical to Delegate Mugler's HB 1916 which passed the Committee and House unanimously. The bill provides Virginia banks access to the Research & Development Tax Credit program to incentive innovation and technology development. There is no fiscal impact as the bill does not change the existing annual cap on the credit. We encourage your support for the bill.

Last Name: Wagner Locality: Gleann Tholastaidh

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SB1146 - Income tax, state; conformity with the Internal Revenue Code.

Last Name: Rice Locality: Chantilly

I oppose any taxes that would amount to an unexpected and uncalled for burden on struggling family businesses.

Last Name: Robert Melvin Organization: Virginia Restaurant, Lodging & Travel Association Locality: Richmond

Madam Chair and members of the committee, I would like to take a moment to express our support for SB1146 and the PPP tax deductibility provisions of the bill. That being said, our organization would support changes to this measure that emulates what the federal government did with the most recent round of PPP and allow certain targeted industries to get additional relief. We would recommend that the additional relief should be provided to businesses that were most impacted by COVID-19 mitigation efforts like restaurants, lodging, hair and nail salons, entertainment, and attractions.

Last Name: Durkin Organization: Roanoke Regional Chamber of Commerce Locality: Roanoke

The Roanoke Regional Chamber of Commerce prefers the Senate position on tax conformity legislation (SB 1146), which allows up to a $100,000 dollar tax deduction for businesses who utilize PPP loans. It is estimated that a broad majority of small businesses would be covered under this threshold, unlike the direction taken in the House version (HB 1935). Tax conformity is vital now as our businesses enter tax season and any delay will create confusion, while a minimal deduction threshold may lead to an unexpected tax bill for small businesses struggling to survive the pandemic. Please support a $100,000 dollar tax deduction for PPP loans when discussing conformity legislation.

Last Name: Lind Locality: Tazewell

The Payroll Protection Plan is a Federal emergency program designed to help in coping with the economic crisis created by the pandemic, by providing Federal funds to employers, earmarked for paying employee's wages in order to prevent massive layoffs. Congress, by bipartisan agreement, exempted these funds from Federal income taxation, for the obvious reason that they are not discretionary income in any sense of the word. For the state of Virginia to now impose a sudden redefinition of "income" to include these emergency funds, and to proceed to tax them, is not only profoundly unethical, but also undermines the Federal attempt to protect jobs in the crisis. Employees of businesses forced into bankruptcy by this unexpected tax will end up unemployed after all (and probably seek state unemployment benefits), and failed businesses won't pay any more taxes. Businesses that survive the tax will be much less inclined to accept further Federal financial assistance after being punished financially for accepting it this time.

Last Name: Walker Organization: Virginia Society of CPAs Locality: Glen Allen

On behalf of the Virginia Society of CPAs (VSCPA), I strongly urge you to pass tax conformity legislation as quickly as possible, and to ensure that it has the necessary support to pass as emergency legislation. Specifically, I ask that you support Sen. Howell's tax conformity bill (SB 1146) as it was passed in the Senate, which includes expense deductibility of $100,000 for PPP loans and Rebuild Virginia grants for all eligible businesses. This year's conformity situation is more complicated than usual because of the inclusion of significant tax provisions in the federal CARES Act and the Consolidated Appropriations Act, the latter of which was signed by the President on Dec. 27, 2020. Lack of guidance in relation to Virginia's intent with these provisions has hampered our members' ability to adequately help their clients plan during what has already been a challenging year with significant economic uncertainty due to the COVID-19 pandemic. While we appreciate conforming to the provision not taxing forgiven PPP loans, Congress's intended benefit from this loan program cannot be achieved if that is not coupled with also allowing deductibility of business expenses funded by the PPP loans. The PPP program was critical to allowing many small businesses, including many CPA firms, to stay in business and avoid layoffs. Additionally, without PPP funding Virginia would not only have been unable to collect payroll and withholding taxes for many employees, there also would've been greater job loss and the need to pay out additional unemployment benefits. As you know, CPAs and other tax practitioners depend heavily on tax conformity legislation to perform their jobs each tax season. Virginia taxpayers cannot adequately file their state taxes each year until the General Assembly addresses conformity. Any additional delay in the effective date of this critical legislation will have cascading effects that will increase the complexity, delay and, potentially, cost of filing tax returns. A speedy resolution to this issue and inclusion of an emergency clause will greatly ease such burdens, allowing tax returns to be filed more quickly. This will allow Virginia to more quickly collect revenue, taxpayers due refunds to more quickly receive their checks, and limit the number of returns needing to be amended. Thank you for your time and consideration.

Last Name: Daugherty Locality: Roanoke County

In Washington, both parties agreed to exempt from federal taxation 100 percent of ALL Payroll Protection Program funds received. If it's good enough for Nancy Pelosi and Chuck Schumer, then it should be good enough for the Democrats in the Virginia legislature! Also, we don't want you to come back and raise taxes next year to try to make up for the "losses" of this year. Cut all the goofy unnecessary spending instead.

Last Name: Love Locality: Lanexa

Oppose all tax increases! Support lowering all taxes! There is never a good time to raise taxes. VA has more than enough revenue to do what it needs to. If anything, we need to reign in out of control spending by lowering taxes to support a limited government. Please oppose all tax increases in all of their forms! Thank you!

Last Name: Wagner Locality: Gleann Tholastaidh

SB1162 - Tax credit; agricultural best management practices.

Last Name: Calvert Organization: Virginia Conservation Network Locality: Charlottesville

Virginia Conservation Network requests SUPPORT of SB 1162. Agricultural best management practices (or BMPs), such as fencing cattle out of streams, are one of most cost-effective investments to improve water quality in local streams, rivers, and Chesapeake Bay. One of key limiting factors for implementation of these voluntary practices is funding, and an increase in funding incentives is necessary to achieve our water quality goals for the Chesapeake Bay. This legislation creates an enhanced tax credit for the implementation of certain agricultural BMPs. Tax credits are a more workable incentive for some farmers who might not be able, for religious or other reasons, to accept government payments or participate in current cost-share programs. Please Vote YES on SB 1162.

Last Name: Wagner Locality: Gleann Tholastaidh

SB1201 - Energy storage systems; definitions, tax exemption, revenue share for systems.

Last Name: Wagner Locality: Gleann Tholastaidh

SB1252 - Coal tax credits; sunset date.

Last Name: Wagner Locality: Gleann Tholastaidh

SB1403 - Retail Sales and Use Tax; exemption for personal protective equipment.

Last Name: Wagner Locality: Gleann Tholastaidh

End of Comments