Along with calling for a reduction in the state’s corporate tax rate that would provide an estimated $64 million in tax relief for state businesses, McAuliffe is seeking additional tax cut and credit changes in the hopes of sparking further economic growth. Key among these proposals would be a new Research and Development Tax Credit that would have a statewide annual cap of $15 million and would be designed for the benefit of companies with more than $5 million in annual research spending.
Additionally, McAuliffe is proposing to strengthen the state’s existing R&D credit, bumping the cap up from $6 million to $7 million, and increasing Virginia’s Angel Investor Tax Credit from $5 million to $9 million. For more information on the governor’s budget, click here.
Governor McAuliffe will announce the details of his full budget proposal on December 17, but the new R&D credit proposals, if passed, could have a positive impact on state businesses.
Contact us for more information on federal or state R&D tax credits and what these new proposals could mean for Virginia state businesses.