RD123 - 2016 Report of the Joint Subcommittee to Evaluate Tax Preferences


Executive Summary:
The Joint Subcommittee to Evaluate Tax Preferences (the Joint Subcommittee), created pursuant to Chapter 52 (§ 30-336 et seq.) of Title 30 of the Code of Virginia, met four times during the 2016 Interim. Delegate Lee Ware served as chairman, and Senator Emmett Hanger served as vice-chairman of the Joint Subcommittee.

During the course of its meetings, the Joint Subcommittee received an update regarding recent changes to the Land Preservation Tax Credit, codified at Article 20.1 (§ 58.1-510 et seq.) of Chapter 3 of Title 58.1. The Joint Subcommittee had previously reviewed this credit in 2014. The Joint Subcommittee also substantively reviewed and discussed the Historic Rehabilitation Tax Credit, codified at § 58.1-339.2, and the Neighborhood Assistance Tax Credit, codified at Article 13.2 (§ 58.1-439.18 et seq.) of Chapter 3 of Title 58.1. The Joint Subcommittee did not vote on any formal recommendations to continue, expand, modify or eliminate either of these preferences. It was generally agreed that additional review was needed during the 2018 interim to fully understand the economic impact of the Historic Rehabilitation Tax Credit.

Meeting materials referenced in this report are available on the Joint Subcommittee's website at http://dls.virginia.gov/commissions/tax.htm. Preference Reports developed for the Land Preservation Tax Credit and Update, the Historic Rehabilitation Tax Credit, and the Neighborhood Assistance Tax Credit are published in the appendix to this report.