Virginia proposals would remove penalties for manufacturers, amend apportionment for retailers and allow full deduction under I.R.C. Sec. 199

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Update. House Bill 154 was enacted on March 6, 2012, House Bill 1153 was enacted on March 22, 2012, and House Bill 460 was enacted on March 30, 2012.

On February 9, 2012, the Virginia House of Delegates unanimously passed legislation (H.B. 460) that would remove penalties that apply to manufacturers electing a phased-in single sales factor if they fail to maintain certain employment levels; on February 17, the Virginia Senate passed and cleared for consideration by Governor Bob McDonnell legislation (H.B. 154) that phases-in a single sales factor for "retail companies;" and on February 14, the House unanimously approved a measure (H.B. 1153) that would adopt the full deduction under I.R.C. Sec. 199 for domestic production activities.


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