HB 230

            
2020 SESSION

20101748D

HOUSE BILL NO. 230


Offered January 8, 2020


Prefiled December 28, 2019

A BILL to amend the Code of Virginia by adding in Article 3 of 
 Chapter 3 of Title 58.1 a section numbered 58.1-339.13, relating to individual 
 and corporate income tax credit; employers of National Guard members and 
 self-employed National Guard members.
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Patrons-- Freitas, Adams, L.R., Austin, Avoli, Batten, Bell, Bloxom,
Brewer, Byron, Campbell, J.L., Campbell, R.R., Cole, M.L., Collins, Cox,
Coyner, Davis, Edmunds, Fariss, Fowler, Head, Hodges, Jenkins, Kilgore,
Leftwich, Miyares, Morefield, Murphy, Orrock, Reid, Robinson, Runion, Rush,
Scott, Simon, Walker, Wilt, Wright and Wyatt; Senators: Peake and Reeves


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Referred to Committee on Finance

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Be it enacted by the General Assembly of Virginia: 
 
 
1. That the Code of Virginia is amended by adding in Article 
 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.13 as follows:
 
 
� 58.1-339.13. Tax 
 credits for employers 
 of National Guard members 
 and self-employed National Guard members.
 
 
A. For 
 purposes of this section:
 
 
"Employer" 
 means the same as that term is defined in � 58.1-460.
 
 
"National 
 Guard employee" means a 
 person who is (i) an employee, as defined 
 in � 58.1-460, of an employer and (ii) an active member of the National Guard 
 of the Commonwealth of Virginia.
 
 
"Self-employed 
 National Guard member" means an active member of 
 the National Guard of the Commonwealth of Virginia who derives a substantial 
 portion of his income from a trade or business (i) operated by the member as a 
 sole proprietor, (ii) through which the member 
 has attempted to earn taxable income, and (iii) for which the 
 member has filed the appropriate Internal Revenue Service 
 Form 1040, Schedule C or F, for the previous taxable year.
 
 
"Wages" 
 means the same as that term is defined in � 58.1-460 and includes wages or 
 salaries paid during the deployment of a National Guard 
 employee.
 
 
B. 1. 
 For taxable years 
 beginning on and after January 1, 2020, but before January 1, 2025, an employer 
 shall be allowed a 
 credit against the tax levied pursuant to � 58.1-320 or 
 58.1-400 for wages paid 
 to a National Guard employee 
 during the taxable year. The amount of the credit shall be 25 percent if such 
 employee was in a military 
 pay status for 65 days or more during such taxable year or 15 
 percent if such employee was in a military pay status for more 
 than 44 days but less than 65 days 
 during such taxable year. The 
 credit shall not be allowed if such employee was in a military pay status for 
 less than 45 days during such taxable year.
 
 
2. For taxable years 
 beginning on and after January 1, 2020, but before January 1, 2025, a 
 self-employed National Guard member shall be allowed 
 a credit against the tax levied pursuant to � 58.1-320 or 58.1-400 for 
 income attributable to his trade or business during 
 the taxable year. 
 The amount of the credit shall be 25 percent if such self-employed 
 individual was in a military pay status for 65 days or more 
 during such taxable year or 15 percent if such self-employed 
 individual was in a military pay status for 
 more than 44 days but less than 65 
 days during such taxable year. The credit shall not be 
 allowed if such self-employed 
 individual was in a military pay status for less than 45 days 
 during such taxable year. 
 No credit shall be allowed pursuant to this subdivision if 
 an employer claimed a tax credit pursuant to subdivision 1 for the same 
 National Guard member.
 
 
C. The 
 amount of the credit claimed shall not exceed the 
 total amount of tax imposed pursuant to � 58.1-320 or 58.1-400 upon the 
 employer for the taxable year.