During the 2016 Session, the Virginia General Assembly enacted House Bill 884 (2016 Acts of Assembly, Chapter 661), and Senate Bill 58 (2016 Acts of Assembly, Chapter 300), which established the Major Research and Development Expenses Tax Credit. This is an individual and corporate income tax credit for taxpayers with Virginia qualified research and development expenses in excess of $5 million for a taxable year.
This legislation requires the Department to adopt guidelines to prescribe standards for determining when research and development is considered conducted in Virginia for purposes of allowing the credit. These guidelines will also address the following issues:
- The requirements to qualify for the credit;
- Details about the method for computing the credit;
- The interaction of this credit with the Research and Development Expenses Tax Credit; and
- How to apply for the credit.
On April 19, 2017, the Department published guidelines regarding the newly enacted Major Research and Development Expenses Tax Credit.
Legislative Documents
House Bill 884 (2016)
- HB 884 Text as passed the House and Senate
- HB 884 PDF of text as passed the House and Senate (PDF)
- HB 884 Fiscal Impact Statement
Senate Bill 58 (2016)
Guideline Development Documents
- Final Major Research and Development Expenses Tax Credit Guidelines (PDF 396 KB)
- Draft Major Research and Development Expenses Tax Credit Guidelines (PDF 131 KB)
- Major Research and Development Expenses Tax Credit Workplan (PDF 20 KB)