Virginia HTC Sunset Bills Defeated; Cap Legislation Advances
Two bills that would have capped and phased down the Virginia state historic tax credit (HTC) were unanimously defeated in the state Senate finance committee in January. S.B. 1540 would have reduced the total aggregate caps of the state HTC over a period of 10 years, so that no credits would have been available beginning in 2027. S.B. 1485 would have added a sunset date of Jan. 1, 2022, to all existing tax credits that do not have a sunset date. Additionally, the state Senate on Friday amended and passed a bill (S.B. 1034) that would limit the amount of state HTC that can be claimed by each taxpayer to $5 million per year, including any carryover amounts, for tax years beginning Jan. 1, 2017. The amendment adds a one year sunset to S.B. 1034, so that the future implementation of the program can be discussed.