# Virginia HB2646: Income tax, state; eligibility of companies for apportionment modification.

Virginia HB2646, Income tax, state; eligibility of companies for apportionment modification., is a 2025 Regular Session House bill sponsored by James W. Morefield (Republican); status failed, last action 2025-02-04 (Left in Finance) (as of 2026-10-17).

- Canonical: https://policyrisk.com/state-bill/VA-HB2646-2025
- As of: 2026-10-17
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia HB2646
- State: Virginia
- Session: 2025 Regular Session
- Title: Income tax, state; eligibility of companies for apportionment modification.
- Status: failed
- Chamber: House
- Introduced: 2025-01-14
- Last action: 2025-02-04, Left in Finance
- Sponsor: James W. Morefield (Republican)
- Cosponsors: 0
- Subjects: Subcommittee #2
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Income tax; eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority. Extends from January 1, 2025, to January 1, 2031, the date after which a corporation or pass-through entity that did not have any existing property or payroll in Virginia as of January 1, 2018, shall constitute an eligible company if such entity (i) either (a) spends at least $5 million on new capital investment in a qualified locality or qualified localities and creates at least 10 new jobs in such locality or localities or (b) creates at least 50 new jobs in a qualified locality or qualified localities, (ii) is a traded-sector company, and (iii) is certified by the Virginia Economic Development Partnership Authority as generating a positive fiscal impact. The bill also extends from January 1, 2025, to January 1, 2031, the date prior to which an eligible company may (a) acquire property in or create jobs in any qualified locality or qualified localities and (b) subtract the value of such property acquired from the property factor or the value of such payroll attributable to such jobs created from the payroll factor from the numerator used in determining its taxable income apportionable to the Commonwealth.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: James W. Morefield (Republican), House

## Actions (5)

- 2025-02-04: Left in Finance (House)
- 2025-01-21: Impact statement from TAX (HB2646) (House)
- 2025-01-20: Assigned Finance sub: Subcommittee #2 (House)
- 2025-01-14: Referred to Committee on Finance (House)
- 2025-01-14: Presented and ordered printed 25104551D (House)

## Bill text

- Introduced, 2025-01-14: [HTML](https://lis.blob.core.windows.net/files/1020079.HTML), [PDF](https://lis.blob.core.windows.net/files/1020078.PDF)

## Related bills

- HR671: Commending JR's Auto Care. (adopted)
- SB941: Robbery; use of air or gas operated weapon, etc., penalty. (failed)
- HB1746: Public safety officer; definition. (failed)
- HB1600: Budget Bill. (failed)
- SB1449: Data centers; site assessment for high energy use facility. (failed)
- HB1609: Essential health benefits benchmark plan; Commission to consider coverage for infertility treatment. (to governor)

## Sources
- [Introduced (HTML)](https://lis.blob.core.windows.net/files/1020079.HTML)
- [Introduced (PDF)](https://lis.blob.core.windows.net/files/1020078.PDF)

## Related
- [HR671: Commending JR's Auto Care.](https://policyrisk.com/state-bill/VA-HR671-2025)
- [SB941: Robbery; use of air or gas operated weapon, etc., penalty.](https://policyrisk.com/state-bill/VA-SB941-2025)
- [HB1746: Public safety officer; definition.](https://policyrisk.com/state-bill/VA-HB1746-2025)
- [HB1600: Budget Bill.](https://policyrisk.com/state-bill/VA-HB1600-2025)
- [SB1449: Data centers; site assessment for high energy use facility.](https://policyrisk.com/state-bill/VA-SB1449-2025)
- [HB1609: Essential health benefits benchmark plan; Commission to consider coverage for i…](https://policyrisk.com/state-bill/VA-HB1609-2025)
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Source: PRIA, https://policyrisk.com/state-bill/VA-HB2646-2025 (as of 2026-10-17).