# Virginia SB786: Income tax, state and corporate; microchip & semiconductor manufacturing & supply chain tax credits.

Virginia SB786, Income tax, state and corporate; microchip & semiconductor manufacturing & supply chain tax credits., is a 2026 Regular Session Senate bill sponsored by Jennifer D. Carroll Foy (Democratic); status in committee, last action 2026-02-05 (Continued to 2027 in Finance and Appropriations (14-Y 0-N)) (as of 2026-10-11).

- Canonical: https://policyrisk.com/state-bill/VA-SB786-2026
- As of: 2026-10-11
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia SB786
- State: Virginia
- Session: 2026 Regular Session
- Title: Income tax, state and corporate; microchip & semiconductor manufacturing & supply chain tax credits.
- Status: in committee
- Chamber: Senate
- Introduced: 2026-01-23
- Last action: 2026-02-05, Continued to 2027 in Finance and Appropriations (14-Y 0-N)
- Sponsor: Jennifer D. Carroll Foy (Democratic)
- Cosponsors: 0
- Subjects: Finance and Appropriations
- Touches household money: no
- Roll calls: 1 (14 yes, 0 no in all)
- Economic provisions PRIA read: 0

## Summary

Microchip and semiconductor manufacturing and supply chain tax credits; Virginia Economic Development Partnership Authority evaluation; report. Creates a series of individual and corporate income tax credits for companies engaged in the microchip and semiconductor manufacturing and supply chain business that between January 1, 2026, and December 31, 2036, (i) invest at least $400 million, (ii) create at least 100 new jobs, (iii) pay an average prevailing wage salary, and (iv) submit a plan for use of and committing $50 million of community investments. The bill creates three refundable tax credits in taxable years 2026 through 2030 in amounts equal to (a) five percent of capital investment expenditures incurred during the year, (b) six percent of child care services expenditures incurred during the year, and (c) 7.5 percent of gross wages paid for each new job created during the year. The bill also requires the Virginia Economic Development Partnership Authority, in collaboration with the Joint Legislative Audit and Review Commission and the Department of Taxation, to evaluate the benefits and impacts of new economic development incentives for companies engaging in the microchip, semiconductor, and related equipment and material supplies sector. A report on such evaluation is due by November 30, 2026.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Jennifer D. Carroll Foy (Democratic), Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-02-05 | Senate | Continued to 2027 in Finance and Appropriations | pass | 14 | 0 |   |

## Actions (4)

- 2026-02-05: Continued to 2027 in Finance and Appropriations (14-Y 0-N) (Senate)
- 2026-02-02: Fiscal Impact statement From TAX (2/2/2026 7:16 pm) (Senate)
- 2026-01-23: Referred to Committee on Finance and Appropriations (Senate)
- 2026-01-23: Presented and ordered printed 26102841D (Senate)

## Bill text

- Introduced, 2026-01-23: [HTML](https://lis.blob.core.windows.net/files/1095702.HTML), [PDF](https://lis.blob.core.windows.net/files/1095701.PDF)

## Related bills

- HB5: Employment; paid sick leave, civil penalties. (signed)
- SB199: Employment; paid sick leave, civil penalties. (signed)
- HB95: Va. Residential Landlord and Tenant Act; landlord remedies, noncompliance with rental agreement. (signed)
- HB1393: Electric utilities; pilot program for energy assistance and weatherization for certain individuals. (signed)
- HB834: Virginia Residential Landlord and Tenant Act; fire or casualty damage, termination by landlord. (signed)
- HB675: Protection of employees; coercion or threat based on immigration status, civil penalty. (signed)

## Sources
- [Introduced (HTML)](https://lis.blob.core.windows.net/files/1095702.HTML)
- [Introduced (PDF)](https://lis.blob.core.windows.net/files/1095701.PDF)

## Related
- [HB5: Employment; paid sick leave, civil penalties.](https://policyrisk.com/state-bill/VA-HB5-2026)
- [SB199: Employment; paid sick leave, civil penalties.](https://policyrisk.com/state-bill/VA-SB199-2026)
- [HB95: Va. Residential Landlord and Tenant Act; landlord remedies, noncompliance with…](https://policyrisk.com/state-bill/VA-HB95-2026)
- [HB1393: Electric utilities; pilot program for energy assistance and weatherization for…](https://policyrisk.com/state-bill/VA-HB1393-2026)
- [HB834: Virginia Residential Landlord and Tenant Act; fire or casualty damage, terminat…](https://policyrisk.com/state-bill/VA-HB834-2026)
- [HB675: Protection of employees; coercion or threat based on immigration status, civil…](https://policyrisk.com/state-bill/VA-HB675-2026)
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Source: PRIA, https://policyrisk.com/state-bill/VA-SB786-2026 (as of 2026-10-11).