---
type: "Bill"
title: "Income tax, state; pass-through entities, elective tax."
description: "Income taxation; pass-through entities. Permits a qualifying pass-through entity, defined in the bill, to make an annual election in taxable years 2021 through 2025 to pay an elective income tax at a rate of 5.75 percent, created by the bill, at the entity level for the taxable period covered by the return. The bill also (i) creates a corresponding refundable income tax credit for taxable years 2021 through 2025 for any amount of income derived from a pass-through entity having Virginia taxable income if such pass-through entity makes such election and pays the elective income tax imposed at the entity level and (ii) allows an individual to claim a credit for similar taxes paid to other states for taxable years 2021 through 2025. This bill is identical to HB 1121."
jurisdiction: "us/states/va"
legislature: "Virginia General Assembly"
session: "2022"
identifier: "SB 692"
citation: "Virginia SB 692 (2022)"
classification: ["bill"]
subjects: []
status: "enacted"
primary_sponsors: ["J. Chapman Petersen"]
version_count: 5
action_count: 36
vote_count: 7
first_action: "2022-01-20"
last_action: "2022-04-11"
source: "openstates"
source_identifier: "ocd-bill/abe76775-8393-40f5-9018-d96f81c8dbb1"
source_url: "https://lis.virginia.gov/cgi-bin/legp604.exe?221+sum+SB692"
source_hash: "c0351453bc68f0c521ab7b7d19c9afccab9c788989dcfb06026cea694fad7ad8"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-va"]
---

# Virginia SB 692 (2022) — Income tax, state; pass-through entities, elective tax.

Income taxation; pass-through entities. Permits a qualifying pass-through entity, defined in the bill, to make an annual election in taxable years 2021 through 2025 to pay an elective income tax at a rate of 5.75 percent, created by the bill, at the entity level for the taxable period covered by the return. The bill also (i) creates a corresponding refundable income tax credit for taxable years 2021 through 2025 for any amount of income derived from a pass-through entity having Virginia taxable income if such pass-through entity makes such election and pays the elective income tax imposed at the entity level and (ii) allows an individual to claim a credit for similar taxes paid to other states for taxable years 2021 through 2025. This bill is identical to HB 1121.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **CHAP0689** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+CHAP0689)
2. **Committee substitute printed 22106137D-S1** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+SB692S1)
3. **Committee substitute printed 22106750D-H1** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+SB692H1)
4. **Presented and ordered printed 22104491D** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+SB692)
5. **SB692ER** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+SB692ER)

## Votes

- Reported from Finance with substitute (22-Y 0-N) — **22–0** (pass) · lower
- House substitute agreed to by Senate (40-Y 0-N) — **40–0** (pass) · upper
- Constitutional reading dispensed (40-Y 0-N) — **40–0** (pass) · upper
- Passed Senate (40-Y 0-N) — **40–0** (pass) · upper
- Reported from Finance and Appropriations with substitute (16-Y 0-N) — **16–0** (pass) · upper
- VOTE: Block Vote Passage (100-Y 0-N) — **99–0** (pass) · lower
- Constitutional reading dispensed (38-Y 0-N) — **38–0** (pass) · upper

## Sponsors

- J. Chapman Petersen — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2022-01-20** Presented and ordered printed 22104491D `introduction`
- **2022-01-20** Referred to Committee on Finance and Appropriations `referral-committee`
- **2022-02-03** Impact statement from TAX (SB692)
- **2022-02-08** Senate committee, floor amendments and substitutes offered
- **2022-02-08** Committee substitute printed 22106137D-S1 `substitution`
- **2022-02-08** Reported from Finance and Appropriations with substitute (16-Y 0-N) `committee-passage`
- **2022-02-09** Constitutional reading dispensed (38-Y 0-N)
- **2022-02-10** Read second time `reading-2`
- **2022-02-10** Reading of substitute waived
- **2022-02-10** Committee substitute agreed to 22106137D-S1
- **2022-02-10** Engrossed by Senate - committee substitute SB692S1
- **2022-02-10** Constitutional reading dispensed (40-Y 0-N)
- **2022-02-10** Passed Senate (40-Y 0-N) `passage`
- **2022-02-18** Placed on Calendar
- **2022-02-18** Read first time `reading-1`
- **2022-02-18** Referred to Committee on Finance `referral-committee`
- **2022-02-18** Impact statement from TAX (SB692S1)
- **2022-02-28** House committee, floor amendments and substitutes offered
- **2022-02-28** Reported from Finance with substitute (22-Y 0-N) `committee-passage`
- **2022-02-28** Committee substitute printed 22106750D-H1 `substitution`
- **2022-03-01** Read second time `reading-2`
- **2022-03-02** Read third time `reading-3`
- **2022-03-02** Committee substitute agreed to 22106750D-H1
- **2022-03-02** Engrossed by House - committee substitute SB692H1
- **2022-03-02** Passed House with substitute BLOCK VOTE (100-Y 0-N) `passage`
- **2022-03-02** VOTE: Block Vote Passage (100-Y 0-N)
- **2022-03-02** House substitute agreed to by Senate (40-Y 0-N)
- **2022-03-02** Title replaced 22106750D-H1
- **2022-03-04** Impact statement from TAX (SB692H1)
- **2022-03-07** Enrolled
- **2022-03-08** Signed by President
- **2022-03-08** Signed by Speaker
- **2022-03-22** Enrolled Bill Communicated to Governor on March 22, 2022
- **2022-03-22** Governor's Action Deadline 11:59 p.m., April 11, 2022
- **2022-03-23** Impact statement from TAX (SB692ER)
- **2022-04-11** Approved by Governor-Chapter 689 (effective 7/1/22) `executive-signature`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/abe76775-8393-40f5-9018-d96f81c8dbb1`. Confidence: reported (aggregated from official Virginia legislature records).