R&D Credit Passes VA Legislature
The Virginia General Assembly approved legislation February 22nd to create the Commonwealth’s first research and development tax credit. This was the top legislative priority of the Virginia Biotechnology Association and was supported strong bipartisan majorities in both chambers of the state legislature. The new law, once signed by the Governor, will create a 15% refundable tax credit for R&D expenses and 20% if that research is done in partnership with a Virginia public or private university.
“On behalf of Virginia’s bioscience community, I want to thank Delegate Ben Cline and Senator Mark Herring for their leadership as chief patrons of this critical economic development policy for the Commonwealth,” said Mark A. Herzog, executive director of the Virginia Biotechnology Association. “They really went to bat for small research-intensive companies all across the state and we are truly grateful.”
The R&D Credit legislation was also a top priority for Governor Robert McDonnell and Lieutenant Governor Bill Bolling who included the measure as part of their legislative priorities for the 2011 Session of the Virginia General Assembly.
According to the Biotechnology Industry Organization (BIO) in Washington, DC, thirty-eight states have an R&D tax credit. Virginia will soon be added to that list.
For more information on this important new policy, please contact the Virginia Biotechnology Association (VABIO) at 804-643-6360.