VA Extended Application Deadline to September 1, 2020
In a recent legislative update, the Virginia General Assembly modified the two state research credit programs resulting in changes that have both current and future implications.
The Research and Development Expenses Tax Credit has been extended through 2024 from the current sunset date of January 1, 2022. The newly available years have also been granted an increase in the funding limit to $7.77M for taxable years beginning on or after January 1, 2021, up from the current $7M that is still effective until that time. Additionally, applications are now due by September 1 of the calendar year following the close of the taxable year, instead of the traditional July 1 deadline.
The Major Research and Development expenses tax credit has similarly been extended through 2024. Tax years beginning after January 1, 2021, will have access to a total of $24M in funding. The application deadline has also been moved from July 1 to September 1 of the following calendar year.