VirginiaSB6122026 Regular SessionSenateWALLET

Motion picture production; extends income tax credit sunset.

Sponsored By: Todd E. Pillion (Republican)

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 HB 400.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 3 costs, 0 mixed.

Refundable credits for film spending and jobs

Producers can get a refundable credit equal to 15% of qualifying Virginia expenses, or 20% in an economically distressed area designated by the Virginia Economic Development Partnership Authority. A production must spend at least $250,000 in Virginia, and the credit is figured on all qualifying Virginia expenses for the production. Refunds apply to one tax year per application. You also get 10% of Virginia-resident payroll when Virginia costs are $250,000 to $1,000,000. You get 20% of that payroll when Virginia costs are over $1,000,000. Payroll for first-time Virginia actors or crew earns an extra 10% credit. Partnerships, S corporations, and LLCs may allocate credits to owners by ownership share.

Film tax credit extended to 2031

The law keeps Virginia’s motion picture production tax credit in place for taxable years that start on or after January 1, 2011 and before January 1, 2031. Starting January 1, 2013, digital interactive media counts the same as a motion picture for this credit. Productions must take place in Virginia.

Limits on what qualifies for credits

For goods bought at $25,000 or more, only the purchase price minus fair market value at completion counts. Only the first $1,000,000 of any one person’s pay counts toward the credit, including pay through service or leasing companies. No credits are allowed for political ads, TV news, live sports, obscene material, or reality TV. One full season of a TV series is treated as one production.

Application and recordkeeping rules for credits

You must apply to the Virginia Tourism Authority before production starts and sign an MOU with estimated Virginia spend, a timeline, and a maximum credit. After you finish and meet the MOU, the VTA certifies the final credit and the fiscal year of any refund. Your tax return for the year you finish must include production details and the credit amount. You must keep records, let the Tax Commissioner review them, and prove you qualify; the Tax Commissioner consults the VTA when checking expenses. No interest is paid on these refunds.

Statewide cap on total credits

The state limits the total motion picture credits it allocates. The caps are $2.5 million for 2010–2012, $5.0 million for 2012–2014, and $6.5 million for FY 2015 and each year after. These limits restrict how much credit can be given to all productions each year.

Sponsors & Cosponsors

Sponsor

  • Todd E. Pillion

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 166 • No: 44

House vote 2/23/2026

Passed House

Yes: 74 • No: 23

House vote 2/18/2026

Reported from Finance

Yes: 18 • No: 3

Senate vote 1/30/2026

Read third time and passed Senate

Yes: 23 • No: 15

Senate vote 1/29/2026

Engrossed by Senate (Voice Vote)

Yes: 0 • No: 0

Senate vote 1/29/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote 1/28/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 1/28/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 1/27/2026

Reported from Finance and Appropriations with substitute

Yes: 11 • No: 3

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0827)

    4/13/2026Governor
  2. Approved by Governor-Chapter 827 (effective 7/1/2026)

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

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026Senate
  5. Fiscal Impact statement From TAX (2/26/2026 3:51 pm)

    2/26/2026Senate
  6. Bill text as passed Senate and House (SB612ER)

    2/24/2026Senate
  7. Enrolled

    2/24/2026Senate
  8. Signed by President

    2/24/2026Senate
  9. Signed by Speaker

    2/24/2026House
  10. Passed House (74-Y 23-N 0-A)

    2/23/2026House
  11. Read third time

    2/23/2026House
  12. Read second time

    2/20/2026House
  13. Reported from Finance (18-Y 3-N)

    2/18/2026House
  14. Fiscal Impact statement From TAX (2/17/2026 7:04 pm)

    2/17/2026Senate
  15. Referred to Committee on Finance

    2/4/2026House
  16. Read first time

    2/4/2026House
  17. Placed on Calendar

    2/4/2026House
  18. Read third time and passed Senate (24-Y 16-N 0-A)

    1/30/2026Senate
  19. Engrossed by Senate (Voice Vote)

    1/29/2026Senate
  20. Finance and Appropriations Substitute agreed to

    1/29/2026Senate
  21. Engrossed by Senate - committee substitute

    1/29/2026Senate
  22. Read second time

    1/29/2026Senate
  23. Passed by for the day Block Vote (Voice Vote)

    1/28/2026Senate
  24. Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)

    1/28/2026Senate
  25. Passed by for the day

    1/28/2026Senate

Bill Text

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