Bill Text: VA HB65 | 2018 | Regular Session | Prefiled
Bill Title: Individuals released from incarceration for conviction of a felony; tax credits for employing.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Introduced - Dead) 2018-02-13 - Left in Finance [HB65 Detail]
Download: Virginia-2018-HB65-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13 as follows:
§58.1-439.12:13. Tax credit for employing individuals released from incarceration for conviction of a felony.
A. As used in this section, unless the context requires a different meaning:
"Base year employment" means the average annual number of full-time jobs for which the taxpayer is the employer for the immediately preceding three taxable years of the taxpayer.
"Full-time job" means a job in the Commonwealth of an indefinite duration, for which the taxpayer is the employer and for which the standard fringe benefits are paid by the taxpayer, requiring a minimum of either (i) 35 hours of an employee's time per week for the entire normal year of such taxpayer's operations, which "normal year" must consist of at least 48 weeks, or (ii) 1,680 hours per year. Seasonal or temporary positions, and positions created when a job function is shifted from an existing location in the Commonwealth, shall not qualify as full-time jobs.
"Individual released from incarceration" means a person currently not incarcerated and who was released from incarceration for conviction of a felony within the five years immediately preceding the date on which the person was hired into the full-time job.
B. For taxable years beginning on or after January 1, 2018, but before January 1, 2023, a taxpayer shall be allowed a credit against the tax levied pursuant to § 58.1-320 or 58.1-400 for each new full-time job created by the taxpayer (i) paying an annual salary of at least $50,000 and (ii) that has been filled by an individual released from incarceration. The amount of the credit for the taxable year shall be $500 for each new full-time job paying an annual salary of at least $50,000 for which the taxpayer hires an individual released from incarceration.
The credit shall be allowed for the first taxable year in which the new full-time job is continuously filled throughout the year by an individual released from incarceration and for each of the four succeeding taxable years, provided that the job is continuously filled throughout the respective year by an individual released from incarceration. However, no credit shall be allowed under this section for the taxable year if the number of full-time jobs for which the taxpayer is the employer for the taxable year is less than the base year employment.
C. To qualify for the tax credit provided in subsection B, a taxpayer shall demonstrate that the new full-time job was created by the taxpayer and that such job was continuously filled in the Commonwealth during the respective taxable year.
D. A taxpayer shall not be allowed a tax credit pursuant to this section for any employee or job for which the taxpayer (i) is allowed a major business facility job tax credit pursuant to §58.1-439, (ii) is allowed a green job creation tax credit pursuant to §58.1-439.12:05, or (iii) receives an enterprise zone job creation grant pursuant to §59.1-547.
E. The amount of the credit shall not exceed the total amount of tax imposed by this chapter upon the taxpayer for the taxable year. Any credit not usable for the taxable year for which the credit was allowed may be carried over for credit against the income taxes of the taxpayer in the next five succeeding taxable years or until the total amount of the tax credit has been taken, whichever is sooner.
F. Credits granted to a partnership, limited liability company, or electing small business corporation (S corporation) shall be allocated to the individual partners, members, or shareholders, respectively, in proportion to their ownership or interest in such business entities.
2. That the Tax Commissioner shall develop guidelines implementing the provisions of this section. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§2.2-4000 et seq.).
3. That no later than December 31, 2022, the Department of Taxation shall provide a written report to the General Assembly detailing (i) the number of taxpayers that claimed a tax credit under §58.1-439.12:13 of the Code of Virginia, as created by this act, in each of taxable years 2018 through 2021, (ii) the total dollar amount of such credits claimed for each such taxable year, and (iii) an assessment of the effectiveness of the credit in promoting participation in the workforce by individuals released from incarceration.
