HB 401

Abstract

Income taxation; pass-through entities.Permits a qualifying pass-through entity, defined in the bill, tomake an annual election in taxable years 2021 through 2025 to payan elective income tax at a rate of 5.75 percent, created by thebill, at the entity level for the taxable period covered by the return.The bill also creates a corresponding individual income tax subtraction for taxable years 2021 through 2025 for any amount of income derivedfrom a pass-through entity having Virginia taxable income if suchpass-through entity makes such election and pays the elective incometax imposed at the entity level.