Bill Text: VA HB473 | 2024 | Regular Session | Prefiled
Bill Title: Income tax, state; employer retention credit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-02-13 - Left in Finance [HB473 Detail]
Download: Virginia-2024-HB473-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 4 of Chapter 3 of Title 58.1 a section numbered 58.1-357 and by adding in Article 14 of Chapter 3 of Title 58.1 a section numbered 58.1-456 as follows:
§58.1-357. Federal employer retention credit; waiver of penalties and interest.
A. For purposes of this section:
"Eligible employer" means the same as that term is defined in the federal authorizing acts.
"Employer retention credit" means the federal employer retention tax credit authorized by the federal authorizing acts.
"Federal authorizing acts" means, as applicable for the period of time for which the employer retention credit is claimed, § 2301 of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020) §§206 and 303 of the federal Taxpayer Certainty and Disaster Tax Relief Act, P.L. 116-260 (Division EE of the Consolidated Appropriations Act, 2021), §9651 of the American Rescue Plan Act, P.L. 117-2 (2021), and § 80604 of the federal Infrastructure Investment and Jobs Act, P.L. 117-58 (2021).
"Qualified wages" means the same as that term is defined in the federal authorizing acts.
B. For taxable years beginning on and after January 1, 2019, but before January 1, 2022, the Tax Commissioner shall have the authority to waive interest imposed pursuant to this chapter on any taxpayer that (i) is an eligible employer that paid qualified wages to some or all of its employees after March 12, 2020, and before January 1, 2022; (ii) claimed an employer retention credit for payment of such qualified wages; (iii) files an amended return for such years after claiming the employer retention credit; and (iv) is found to have an additional tax liability for such years due to the reduction in the amount of wages paid that may be claimed as a deduction as a result of claiming such credit. Such waiver of interest shall be allowed only for the portion of unpaid taxes that is the result of claiming the employer retention credit.
§58.1-456. Federal employer retention credit; waiver of interest.
A. For purposes of this section:
"Eligible employer" means the same as that term is defined in the federal authorizing acts.
"Employer retention credit" means the federal employer retention tax credit authorized by the federal authorizing acts.
"Federal authorizing acts" means, as applicable for the period of time for which the employer retention credit is claimed, § 2301 of the federal Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136 (2020) §§206 and 303 of the federal Taxpayer Certainty and Disaster Tax Relief Act, P.L. 116-260 (Division EE of the Consolidated Appropriations Act, 2021), §9651 of the American Rescue Plan Act, P.L. 117-2 (2021), and § 80604 of the federal Infrastructure Investment and Jobs Act, P.L. 117-58 (2021).
"Qualified wages" means the same as that term is defined in the federal authorizing acts.
B. For taxable years beginning on and after January 1, 2019, but before January 1, 2022, the Tax Commissioner shall have the authority to waive interest imposed pursuant to this chapter on any taxpayer that (i) is an eligible employer that paid qualified wages to some or all of its employees after March 12, 2020, and before January 1, 2022; (ii) claimed an employer retention credit for payment of such qualified wages; (iii) files an amended return for such years after claiming the employer retention credit; and (iv) is found to have an additional tax liability for such years due to the reduction in the amount of wages paid that may be claimed as a deduction as a result of claiming such credit. Such waiver of interest shall be allowed only for the portion of unpaid taxes that is the result of claiming the employer retention credit.
