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Bill

HB 1461

Income tax, state & corporate; microchip & semiconductor manufacturing & supply chain tax credits.

2026 Regular Session

Virginia bill creates income tax credits for semiconductor and microchip manufacturers to attract industry investment and jobs while reducing state tax revenue.

Tabled in Finance (19-Y 2-N)
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WeVote Research Nonpartisan
Bill Summary · HB 1461

Legislative bill overview

HB 1461 establishes state and corporate income tax credits for businesses engaged in microchip and semiconductor manufacturing and supply chain activities in Virginia. The bill incentivizes investment in semiconductor production facilities and related operations through targeted tax breaks.

Why is this important

Semiconductor manufacturing is a strategically critical and high-value industry. Tax credits can attract major chip makers and suppliers to Virginia, potentially creating well-paying jobs and economic development. However, this represents foregone tax revenue that must be offset elsewhere or accepted as a budget cost.

Potential points of contention

  • Fiscal cost uncertainty: Without seeing the specific credit amounts and eligibility thresholds, the true cost to the state budget is unclear. The recent fiscal impact statement will clarify this concern.
  • Industry selectivity: Targeted tax credits favor specific industries over others, raising fairness questions about why semiconductors receive preferential treatment versus other manufacturing or sectors.
  • Accountability and clawback provisions: The bill details are unclear on whether credits require job creation targets, wage standards, or clawback mechanisms if companies fail to meet commitments or relocate later.

Compiled from official sources — confirm details with the bill’s official record.

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