ADVOCACY

GENERAL ASSEMBLY SESSION 2014 >>

Tax credits, incentives mark successful VSCPA efforts

It was another low-key year for the VSCPA at the Virginia General Assembly, beginning with a weather-dampened CPA Assembly Day on Jan. 21.

While the threat of snowstorms kept some members from being able to attend, those who did helped kick off a remarkably successful session.

The VSCPA took action on seven bills and saw successful outcomes on all of them. Visit www.vscpa.com/SessionWatch for more details on the VSCPA’s involvement and the up-to-date status of each bill.

VIRGINIA TAX CONFORMITY: LAW

Gov. Terry McAuliffe signed HB 1085 into law Feb. 5, conforming the Virginia tax code to the U.S. Internal Revenue Code (IRC) with regard to the enhanced Earned Income Tax Credit (EITC). Low-income taxpayers may now take advantage of the enhanced EITC through 2017. McAuliffe signed the bill’s Senate companion, SB 288, into law Feb. 20. Because both bills contain emergency clauses, the law went into effect immediately when signed by McAuliffe.

PATENT INFRINGEMENT: PASSED GENERAL ASSEMBLY

HB 375 and SB 150 passed both houses of the General Assembly, and at press time, McAuliffe had sent amendments on both bills back to the Assembly. The bills deal with limiting patent infringement assertions made in bad faith by so-called “patent trolls,” who often target small businesses and hope targets choose to settle out of court instead of mounting an expensive defense. The VSCPA supported the bills.

DOMESTIC INTERNATIONAL SALES CORPORATIONS: LAW

HB 480 (signed into law Feb. 27) and SB 515 (signed into law March 5), introduced at the VSCPA’s request, conform the Virginia tax code with federal law with regard to Interest Charge-Domestic International Sales Corporations (IC-DISC). This tax incentive allows exporters to exclude a portion of qualifying export income from federal taxation, instead taxing it at the lower qualified dividend income rate. “Once delegates and senators understood the mechanics and why this was a benefit to Virginia, as opposed to having more and more states adopt this and Virginia not and therefore Virginia becoming less competitive, it was a pretty easy process,” VSCPA member Ryan Losi, CPA, said.

See page 14 or more information from Losi or watch his testimony before the House Finance Committee (see link above).

Watch Ryan Losi, CPA, discuss Interest Charge-Domestic International Sales Corporations (IC-DISC) at www.vscpa.com/ICDISCVideo, or visit the digital edition of Disclosures at http://discosures.vscpa.com and click on the embedded video.

PRIVATE SECURITY SERVICES BUSINESSES: LAW

HB 897 clarifies the exemption for CPAs authorized to practice in Virginia from licensing, certification and training requirements for private security services businesses. The bill aligns the relevant Virginia statute section with the licensing statutes for CPAs and the interpretation issued by the Virginia Department of Criminal Justice Services, which allow for practice mobility. McAuliffe signed it into law March 7.

Thanks to all the VSCPA members who spoke out on these issues with their legislators! Your vocal efforts, whether in person at CPA Assembly Day or via letters or emails, gave our advocacy efforts a significant boost.

Visit www.vscpa.com/SessionWatch for the most up-to-date legislative information. n