HB332:

Income tax, state and corporate; credit for small businesses.

Bill Summary:

Income tax credit; small businesses. Provides,
in taxable year 2022, an individual or corporate income tax credit,
as applicable for an eligible small business, defined in the bill
as a (i) (a) pass-through entity that employs fewer than 50 employees
and that has no more than $10 million in gross receipts during such
taxable year or (b) self-employed individual or (ii) corporation
that is at least 51 percent independently owned by one or more United
States citizens or legal resident aliens, employs fewer than 50 employees
together with affiliates, and has no more than $10 million in gross
receipts during the taxable year, and where the individual business
owners must control both the management and daily operations of the
business. The individual income tax credit is equal to the amount
of Virginia income tax owed on up to $250,000 of personal income
during such taxable year and the credit for a corporation equals the
amount of Virginia income tax owed during such taxable year on up
to $250,000 of the amount that is not deductible when computing federal
tax due to Virginia's deconformity from certain provisions of the
federal Consolidated Appropriations Act of 2020. The credit is subject
to an aggregate cap of $75 million.