Committee approves study on microchip and semiconductor tax incentives, directs VEDP to report by Nov. 30, 2025
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Summary
Senate Bill 1184, directing VEDP and the Department of Taxation to study incentives for semiconductor and microchip manufacturing and report by Nov. 30, 2025, was reported by the Rules Committee (Ayes 15, No 0).
Senate Bill 1184, requiring the Virginia Economic Development Partnership (VEDP) to analyze potential economic development incentives for microchip and semiconductor manufacturers and report findings and recommendations by Nov. 30, 2025, was reported by the Rules Committee and will be scheduled for further committee action.
The sponsor summarized the federal CHIPS and Science Act and explained that states compete to attract semiconductor manufacturing. He said the study should evaluate tax-credit incentives, grant programs, and whether Virginia should join other states in offering a competitive package to retain and expand firms such as Micron. "They would have to provide new jobs, all paying prevailing wage. They would have to bring over a $100,000,000 of new capital investment into our Commonwealth," he said of company milestones discussed as part of potential incentive packages.
Committee members asked why VEDP was the appropriate agency to conduct the study versus JLARC. The sponsor said the drafter and staff recommended VEDP, but the committee could opt for JLARC if it preferred. The sponsor also noted the measure may need to be reviewed by the fiscal impact (MEI) process because a tax incentive could exceed $10,000,000.
The committee moved, seconded and approved reporting Senate Bill 1184 on an electronic vote recorded as Ayes 15, No 0.
Votes at the committee: Moved and seconded that Senate Bill 1184 be reported. Vote: Ayes 15, No 0.