HB401:

Income tax, state; pass-through entities.

Bill Summary:

Income taxation; pass-through entities.
Permits a qualifying pass-through entity, defined in the bill, to
make an annual election in taxable years 2021 through 2025 to pay
an elective income tax at a rate of 5.75 percent, created by the
bill, at the entity level for the taxable period covered by the return.
The bill also creates a corresponding individual income tax subtraction
for taxable years 2021 through 2025 for any amount of income derived
from a pass-through entity having Virginia taxable income if such
pass-through entity makes such election and pays the elective income
tax imposed at the entity level.