VirginiaHB4002026 Regular SessionHouseWALLET

Motion picture production; increases aggregate cap on tax credit, extends sunset.

Sponsored By: Charniele L. Herring (Democratic)

Became Law

Summary

Motion picture production tax credit; sunset extended. Extends the motion picture production tax credit sunset date from taxable year 2026 to taxable year 2030. This bill is identical to SB 612.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

Credits can pass through to owners

If a partnership, S corporation, or LLC earns the credit, it can pass the credit to its owners. Each owner gets a share that matches their ownership share. This rule applies to tax years that begin on or after January 1, 2011 and before January 1, 2031.

Extra payroll credits for Virginia hires

The law adds a refundable payroll credit for Virginia resident workers. If total Virginia production costs are $250,000 to $1,000,000, you get 10% of payroll paid to Virginia residents. If costs are over $1,000,000, you get 20% of that payroll. You also get an extra 10% credit for pay to Virginia residents hired for the first time as actors or crew. These credits apply to tax years that begin on or after January 1, 2011 and before January 1, 2031.

Refundable credits for Virginia productions

The law gives a refundable tax credit for films and similar work made in Virginia. Productions that spend at least $250,000 in Virginia can claim 15% of qualifying costs, or 20% if filmed in a state‑designated economically distressed area. Starting January 1, 2013, digital interactive media also qualifies. Only certain costs count: for items costing $25,000 or more, count the price minus the item’s value when production ends, and only the first $1,000,000 paid to any one person per production counts. The credit applies to tax years that begin on or after January 1, 2011 and before January 1, 2031.

Credit caps and no interest

The state caps total film and media credits. The cap is $2.5 million for 2010–2012, $5 million for 2012–2014, and $6.5 million each year starting in fiscal 2015. Refunds of these credits do not include interest. These limits remain in force through the program’s sunset on January 1, 2031.

Apply early and certify refunds

You must apply to the Virginia Tourism Authority before production starts and sign a memorandum of understanding. The MOU sets your estimated Virginia spend, your timeline, and the maximum credits allocated. After you finish and meet the MOU, the Authority certifies your final credit and tells which fiscal year it will be refunded. On your tax return for the year you finish Virginia work, you must report the credit amount, refund year, production name and description, and a detailed list of qualifying expenses. These rules apply to tax years beginning on or after January 1, 2011.

Sponsors & Cosponsors

Sponsor

  • Charniele L. Herring

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 314 • No: 84

House vote 3/4/2026

Senate substitute agreed to by House

Yes: 70 • No: 24

Senate vote 3/4/2026

Senator Pillion Substitute agreed to

Yes: 0 • No: 0

Senate vote 3/4/2026

Passed Senate with substitute

Yes: 25 • No: 15

Senate vote 3/4/2026

Reconsideration of Senate passage agreed to by Senate

Yes: 40 • No: 0

Senate vote 3/4/2026

Passed Senate with substitute

Yes: 24 • No: 16

Senate vote 3/3/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 3/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 3/3/2026

Reported from Finance and Appropriations

Yes: 12 • No: 3

House vote 2/17/2026

Read third time and passed House

Yes: 74 • No: 23

House vote 2/11/2026

Reported from Finance with amendment(s)

Yes: 18 • No: 3

House vote 2/9/2026

Subcommittee recommends reporting with amendment(s)

Yes: 11 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0795)

    4/13/2026Governor
  2. Approved by Governor-Chapter 795 (effective 7/1/2026)

    4/13/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/14/2026Governor
  4. Enrolled Bill communicated to Governor on March 14, 2026

    3/14/2026House
  5. Signed by Speaker

    3/12/2026House
  6. Fiscal Impact statement From TAX (3/11/2026 9:17 am)

    3/11/2026House
  7. Bill text as passed House and Senate (HB400ER)

    3/11/2026House
  8. Enrolled

    3/11/2026House
  9. Signed by President

    3/11/2026Senate
  10. Senate substitute agreed to by House (70-Y 24-N 0-A)

    3/4/2026House
  11. Passed Senate with substitute (24-Y 16-N 0-A)

    3/4/2026Senate
  12. Reconsideration of Senate passage agreed to by Senate (40-Y 0-N 0-A)

    3/4/2026Senate
  13. Passed Senate with substitute (25-Y 15-N 0-A)

    3/4/2026Senate
  14. Senator Pillion Substitute agreed to

    3/4/2026Senate
  15. Floor Offered

    3/4/2026Senate
  16. Engrossed by Senate - floor substitute

    3/4/2026Senate
  17. Reading of substitute waived

    3/4/2026Senate
  18. Read third time

    3/4/2026Senate
  19. Passed by for the day Block Vote (Voice Vote)

    3/3/2026Senate
  20. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    3/3/2026Senate
  21. Rules suspended

    3/3/2026Senate
  22. Reported from Finance and Appropriations (12-Y 3-N)

    3/3/2026Senate
  23. Fiscal Impact statement From TAX (2/19/2026 1:51 pm)

    2/19/2026House
  24. Referred to Committee on Finance and Appropriations

    2/18/2026Senate
  25. Constitutional reading dispensed (on 1st reading)

    2/18/2026Senate

Bill Text

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