Virginia House Bill HB290

Virginia 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Income tax, state and corporate; tax credit for employers of National Guard members.

Impact

The bill aims to establish clear tax incentives for businesses hiring National Guard members, potentially impacting state tax revenues by reducing the tax burden on employers during the effective period from 2022 to 2027. By providing these tax credits, the legislation encourages employment retention for National Guard personnel, which could help in alleviating the financial challenges faced by service members and their families during periods of deployment.

Summary

House Bill 290 provides tax credits for employers who employ members of the National Guard and for self-employed members of the National Guard in Virginia. It allows employers to claim a nonrefundable credit against their tax obligations for wages paid to National Guard members who are on active duty for specified periods. The tax credits are structured to incentivize employment of these military personnel during their service, thereby offering financial relief to both the employers and the service members. This bill is intended to support National Guard personnel who contribute to national defense while maintaining their civilian careers.

Contention

One point of contention surrounding HB 290 could stem from the allocation of state tax revenues to fund these tax credits, raising concerns amongst legislators about the long-term fiscal implications. Discussions may revolve around whether these credits are an effective means of supporting National Guard members or if the financial cost to the state is justifiable compared to other potential uses of those tax dollars. Additionally, there may be differing opinions on the scope and eligibility of the employer tax credit, especially regarding its impact on small businesses versus larger corporate entities.