Income tax, state and corporate; microchip & semiconductor manufacturing & supply chain tax credits.
This legislation establishes income tax credits for companies in microchip and semiconductor manufacturing that meet specific investment and job creation criteria. It also mandates an evaluation of the economic impacts of these incentives by the Virginia Economic Development Partnership Authority.
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SB 786 — Income tax, state and corporate; microchip & semiconductor manufacturing & supply chain tax credits.
Last action — Continued from last session
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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2In Committee
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3Passed Senate
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4Passed House of Delegates
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5To Executive
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6Enacted
This bill is in committee in the Senate. Introduced January 23, 2026. It must pass committee before a floor vote.
Next likely step: a committee vote, then a floor vote in the Senate.
Prognosis
Where this bill stands today.
Odds of enactment
LowHow often bills like it became law.
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In Committee
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
In plain language
The bill provides tax credits for microchip and semiconductor manufacturing investments in Virginia.
This legislation establishes income tax credits for companies in microchip and semiconductor manufacturing that meet specific investment and job creation criteria. It also mandates an evaluation of the economic impacts of these incentives by the Virginia Economic Development Partnership Authority.
What this means for you
- Small Business: Small businesses involved in the semiconductor supply chain may benefit from increased investment and job creation in the sector.
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 Text
- Introduced View text Current pdf
Compared against the Code of Virginia as published AI-generated reading aid — verify against the official bill.
This bill amends 1 section(s) of the Code of Virginia: 58.1-439.12.
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58.1-439.12
A.
Inserts “A.”.
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58.1-439.12
For purposes of this section:
Inserts “For purposes of this section:”.
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58.1-439.12
"Capital investment" means an expenditure by or on behalf of a qualified company on or after July 1, 202
Inserts “"Capital investment" means an expenditure by or on behalf of a qualified company on or after July 1, 202”.
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58.1-439.12
6
Inserts “6”.
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58.1-439.12
, in real property, tangible personal property, or both,
Inserts “, in real property, tangible personal property, or both,”.
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58.1-439.12
at a facility in
Inserts “at a facility in”.
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58.1-439.12
Virginia that is properly chargeable to a capital account. The purchase or lease of furniture, fixtures, business personal property, machinery
Inserts “Virginia that is properly chargeable to a capital account. The purchase or lease of furniture, fixtures, business personal property, machinery”.
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58.1-439.12
,
Inserts “,”.
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58.1-439.12
and tools, including under any operating lease, and expected building construction and upfit by or on behalf of a qualified company shall qualify as capital investment.
Inserts “and tools, including under any operating lease, and expected building construction and upfit by or on behalf of a qualified company shall qualify as capital investment.”.
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58.1-439.12
"
Inserts “"”.
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58.1-439.12
Child
Inserts “Child”.
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58.1-439.12
care services expenditures
Inserts “care services expenditures”.
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58.1-439.12
"
Inserts “"”.
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58.1-439.12
means the
Inserts “means the”.
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58.1-439.12
amount of
Inserts “amount of”.
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58.1-439.12
new, annual
Inserts “new, annual”.
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58.1-439.12
qualified company
Inserts “qualified company”.
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58.1-439.12
expenditures on child
Inserts “expenditures on child”.
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58.1-439.12
care services whether internal or provided by a third party, including coverage for
Inserts “care services whether internal or provided by a third party, including coverage for”.
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58.1-439.12
a
Inserts “a”.
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58.1-439.12
full or partial discount of employee rates, minus any revenues received by the qualified company through a third-party operator, including rent paid to the qualified company by the child care provider, or employees.
Inserts “full or partial discount of employee rates, minus any revenues received by the qualified company through a third-party operator, including rent paid to the qualified company by the child care provider, or employees.”.
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58.1-439.12
"Eligible project" means a project (i) in Virginia by a qualified company in the semiconductor manufacturing and related equipment and material supplies sector for which a memorandum
Inserts “"Eligible project" means a project (i) in Virginia by a qualified company in the semiconductor manufacturing and related equipment and material supplies sector for which a memorandum”.
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58.1-439.12
of
Inserts “of”.
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58.1-439.12
understanding has been entered into
Inserts “understanding has been entered into”.
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58.1-439.12
;
Inserts “;”.
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58.1-439.12
(ii) that includes sustainability measures to mitigate the impact of greenhouse gas emissions over the project's lifetime
Inserts “(ii) that includes sustainability measures to mitigate the impact of greenhouse gas emissions over the project's lifetime”.
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58.1-439.12
and measures to support workforce development, child
Inserts “and measures to support workforce development, child”.
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58.1-439.12
care, housing, and education in the locality in which the facility is located
Inserts “care, housing, and education in the locality in which the facility is located”.
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58.1-439.12
;
Inserts “;”.
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58.1-439.12
(iii)
Inserts “(iii)”.
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58.1-439.12
that
Inserts “that”.
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58.1-439.12
provides project construction salaries that are no less than the
Inserts “provides project construction salaries that are no less than the”.
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58.1-439.12
prevailing average wage in the locality in which the facility is located
Inserts “prevailing average wage in the locality in which the facility is located”.
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58.1-439.12
;
Inserts “;”.
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58.1-439.12
(iv)
Inserts “(iv)”.
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58.1-439.12
that
Inserts “that”.
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58.1-439.12
include
Inserts “include”.
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58.1-439.12
s
Inserts “s”.
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58.1-439.12
commitments to worker and community investment, which shall include training and education benefits paid by the
Inserts “commitments to worker and community investment, which shall include training and education benefits paid by the”.
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58.1-439.12
qualified
Inserts “qualified”.
Action History
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Continued from last session
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Continued to next session in Finance and Appropriations (14-Y 0-N)
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Fiscal Impact statement From TAX (2/2/2026 7:16 pm)
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Referred to Committee on Finance and Appropriations
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Presented and ordered printed 26102841D
Sponsors
- Jennifer D. Carroll Foy · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 147 not signed on
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (147)
147 members have not signed on to this bill.
Show all 147 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- What does SB 786 do?
- 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.
- Who sponsors SB 786?
- SB 786 is sponsored by Jennifer D. Carroll Foy.
- What is the current status of SB 786?
- This bill is in committee in the Senate. Introduced January 23, 2026. It must pass committee before a floor vote.
- Where can I track SB 786?
- Track SB 786 free on One Click Politics — get push/email alerts when it moves.
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