Register Now for Virginia Investor Tax Credit
-VaBIO Victory at Legislature Delivers Bioscience Tax Credit -
Despite a state budget deficit of nearly $4 billion, advocates for the Virginia bioscience industry won a significant victory at the Virginia General Assembly in February, 2009 with the passage of Senate Bill 1338, the “omnibus” bioscience bill.
A key feature of that legislation is an investment tax credit targeted at bioscience and other advanced technology companies, especially start-ups from Virginia universities. The VaBIO-backed legislation limits the existing qualified equity and subordinated debt investment tax credit (also known as the “Angel Investor Tax Credit”) to bioscience and other advanced technology start-ups, and reserves up to 50% of the available credit for tech-transfer spin-outs from universities. Details are here on the program:
How to Register: There is a two-step program to receive the credit: First, eligible companies must register with the Department of Taxation in the calendar year for which the credit will be given; Second, an investor seeking the credit would then need to submit a separate application to receive a credit for an investment in a registered, pre–qualified company.
Click here for the link to the company application (Form QBA) to become registered:
http://www.tax.virginia.gov/taxforms/Business/Business%20Credits/QBA.pdf
Click here for the investor application (Form EDC) to receive the credit:
http://www.tax.virginia.gov/taxforms/Individual/Credit/EDC%20and%20Inst.pdf
“Every biotech company in Virginia that has an investor should register by December 31,” said Mark Herzog, executive director of the Virginia Biotechnology Association. “If the company is not registered as eligible for the program, the investor will not receive the credit.”
SB 1338, sponsored by Senator Mark Herring (D-Leesburg), Delegate John O’Bannon (R-Henrico) and Delegate Mark Sickles (D-Fairfax), was known as the “Omnibus Biotech Bill” because it comprised all of the top recommendations from the 2008 Joint Legislative Subcommittee on the Biosciences. The Virginia Biotechnology Association (VaBIO) led the effort to establish that subcommittee and played a lead role in advocating for the bill along with the Biotechnology Industry Organization (BIO) and the Northern Virginia Technology Council (NVTC).
For more information about the program, please contact Diane Johnson at the Virginia Department of Taxation at 804-786-2992 or via email at diane.johnson@tax.virginia.gov.
