Income tax; pass-through entities. Makes changes to the elective entity level tax on pass-through entities effective beginning with taxable year 2021. The bill would impose the tax only on the share of income, gain, loss, or deduction attributable to eligible owners as opposed to imposing the tax on the entire entity. The bill defines "eligible owner" as an owner of a pass-through entity that is a natural person, estate, or trust. The bill also removes the requirement that to qualify for the tax election a pass-through entity must be 100 percent owned by natural persons or persons eligible to be shareholders in an S corporation. This bill is identical to SB 1476.

Statutes affected:
House: Prefiled and ordered printed; offered 01/11/23 23102579D: 58.1-390.1, 58.1-390.3
House: Committee substitute printed 23103991D-H1: 58.1-390.1, 58.1-390.3
House: Bill text as passed House and Senate (HB1456ER): 58.1-390.1, 58.1-390.3
Governor: Acts of Assembly Chapter text (CHAP0686): 58.1-390.1, 58.1-390.3