Most businessmen will follow the traditional path to check the state tax rate, which is easily available.1) However, a creative businessman will be more interested in state tax credits or state benefit programs that may help their business in a more direct way. If you are one of those creative businessmen, here it comes. We will introduce to you some of the most helpful state tax incentives for a new business or expanding business. Let's start with our home state, the Commonwealth of Virginia.
Capital Gains Tax Exemption
State income tax exemption for long term capital gains incurred in connection with investments in technology, biotechnology, and energy-related companies/start-ups
Informational Link: http://www.nvtc.org/advocacy/virginia_initiatives.php
Angel Investor Tax Credit
A credit of 50% per qualified investment made each year, Virginia’s highly competitive Angel Investor Tax Credit encourages early investment in biotechnology, energy, and technology start-ups that are located in the Commonwealth
Informational Link: http://www.tax.virginia.gov/site.cfm?alias=taxcredit#Qualified_Equity_And_Subordinated_Debt_Investments_Credit
Major Business Facility Job Credit
An income tax credit of $1,000 per full-time job created over a threshold number of jobs (the threshold is 50 for some companies, and 25 for others)
Informational Link: http://www.tax.virginia.gov/site.cfm?alias=TaxCredit
Research and Development Tax Credit
An income tax credit for qualifying research and development expenses incurred by companies and individuals located in Virginia; tax credit amounts per company or individual can be as high as $25,050 or $30,000, depending on if the R & D was conducted in conjunction with a college or university located in Virginia
Informational Link: http://www.tax.virginia.gov/site.cfm?alias=TaxCredit#Research_and_Development_Tax_Credit
1) If you are interested in the tax rates by State, the Tax Foundation has excellent web-site showing all sorts of tax rate applicable to your business.