A bipartisan limit on tax credits, costing Virginia $12 billion a year in potential revenue, made its way through a Senate committee Tuesday.
But not before Sen. Henry Marsh, D-Richmond, demanded to know why the bill didn’t impose a tighter rein on new credits.
The bill, sponsored by Del. Ben Cline, R-Rockbridge County, requires any future tax credits given to large businesses expire after five years.
In an unusual show of unity, Del. David Englin, D-Alexandria, joined Cline in supporting the bill in front of the Senate Finance Committee.
Cline is a co-chairman of the House Conservative Caucus, while Englin is co-chairman of the Progressive Caucus.
“If you are doing five years, why not three?” asked Marsh, advocating the state start capturing revenue quicker.
Cline replied, “I would just say we are trying to find a balance that gets this bill passed, and those who would prefer there not be anything in the code are willing to accept five years.”
Englin, responding to Marsh, said he and Cline were “trying to institute a policy that the General Assembly doesn’t put new tax credits into the code” without setting an expiration date.
The state has at least 187 tax preferences, with a $12.5 billion impact on revenues, Cline said. Most of the credits have no expiration date, and if they do, legislators often grant extensions.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement