Research and development tax credit bill passes Senate
This morning, SB58 – a bill co-chief patroned by Senator Janet Howell (D-Fairfax) – passed unanimously through the Senate. The bill expands the scope of the existing research and development tax credit, raises the cap on funds available through that credit, and creates a new and separate R&D tax credit for companies that invest at least $5 million in Virginia R&D in a given year. The final bill incorporates Senator Howell’s own SB161.
Said Senator Howell, “Building a new Virginia economy means doing more to reward innovation. The research and development tax credit is an incentive for companies to come to Virginia and invest in Virginia. This bill is going to create well-paying, 21st century jobs, and it’s going to spur growth throughout the state. I am delighted my colleagues in the Senate have joined me in support of this measure.”
Said Senator George Barker (D-Fairfax), “This R&D tax credit provides a strong incentive for existing Virginia businesses to expand and for entrepreneurs outside Virginia to come here. We spend money on our great universities that train researchers, but they often leave Virginia after getting their PhD’s because of limited research being done here. This will create many great jobs in Virginia, helping us keep researchers here. That will help us diversify our economy, boost growth, and increase average incomes.”
Said Democratic Leader Senator Dick Saslaw (D-Fairfax), “We are pleased to work with Governor McAuliffe on his most urgent initiatives and his highest priorities: economic development and job creation. By passing this legislation, companies that meet the criteria to do research and development will be able to do more. This will help both small businesses and big business in their R&D efforts.”