---
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 SB 692."
jurisdiction: "us/states/va"
legislature: "Virginia General Assembly"
session: "2022"
identifier: "HB 1121"
citation: "Virginia HB 1121 (2022)"
classification: ["bill"]
subjects: []
status: "enacted"
primary_sponsors: ["Joseph P. McNamara"]
version_count: 5
action_count: 40
vote_count: 8
first_action: "2022-01-12"
last_action: "2022-04-11"
source: "openstates"
source_identifier: "ocd-bill/203149d8-2d66-4c53-8db4-d314286b3840"
source_url: "https://lis.virginia.gov/cgi-bin/legp604.exe?221+sum+HB1121"
source_hash: "55967617aa985545c77c8e8c81ff31aeff61dd448bd34ae52f8ab289dce883b3"
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 HB 1121 (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 SB 692.

## Version chain

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

1. **CHAP0690** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+CHAP0690)
2. **Committee substitute printed 22106141D-H1** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+HB1121H1)
3. **Committee substitute printed 22106756D-S1** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+HB1121S1)
4. **HB1121ER** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+HB1121ER)
5. **Presented and ordered printed 22103362D** (committee substitute) — [source](https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+HB1121)

## Votes

- Reported from Finance and Appropriations with substitute (16-Y 0-N) — **16–0** (pass) · upper
- Reported from Finance with substitute (21-Y 0-N) — **21–0** (pass) · lower
- VOTE: Adoption (99-Y 0-N) — **98–0** (pass) · lower
- Subcommittee recommends reporting with substitute (9-Y 0-N) — **9–0** (pass) · lower
- Constitutional reading dispensed (40-Y 0-N) — **40–0** (pass) · upper
- Reported from Appropriations (18-Y 0-N) — **18–0** (pass) · lower
- VOTE: Block Vote Passage (100-Y 0-N) — **99–0** (pass) · lower
- Passed Senate with substitute (40-Y 0-N) — **40–0** (pass) · upper

## Sponsors

- Joseph P. McNamara — primary (person)
- Vivian E. Watts — cosponsor (person)

## Timeline

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

- **2022-01-12** Presented and ordered printed 22103362D `introduction`
- **2022-01-12** Referred to Committee on Finance `referral-committee`
- **2022-01-27** Assigned Finance sub: Subcommittee #1 `referral-committee`
- **2022-02-03** Impact statement from TAX (HB1121)
- **2022-02-07** House subcommittee amendments and substitutes offered
- **2022-02-07** Subcommittee recommends reporting with substitute (9-Y 0-N)
- **2022-02-07** Subcommittee recommends referring to Committee on Appropriations
- **2022-02-07** House committee, floor amendments and substitutes offered
- **2022-02-07** Reported from Finance with substitute (21-Y 0-N) `committee-passage`
- **2022-02-07** Committee substitute printed 22106141D-H1 `substitution`
- **2022-02-07** Referred to Committee on Appropriations `referral-committee`
- **2022-02-11** Reported from Appropriations (18-Y 0-N) `committee-passage`
- **2022-02-13** Read first time `reading-1`
- **2022-02-14** Read second time `reading-2`
- **2022-02-14** Committee substitute agreed to 22106141D-H1
- **2022-02-14** Engrossed by House - committee substitute HB1121H1
- **2022-02-15** Read third time and passed House BLOCK VOTE (100-Y 0-N) `passage, reading-3`
- **2022-02-15** VOTE: Block Vote Passage (100-Y 0-N)
- **2022-02-16** Constitutional reading dispensed
- **2022-02-16** Referred to Committee on Finance and Appropriations `referral-committee`
- **2022-02-24** Impact statement from TAX (HB1121H1)
- **2022-03-01** Senate committee, floor amendments and substitutes offered
- **2022-03-01** Reported from Finance and Appropriations with substitute (16-Y 0-N) `committee-passage`
- **2022-03-01** Committee substitute printed 22106756D-S1 `substitution`
- **2022-03-02** Constitutional reading dispensed (40-Y 0-N)
- **2022-03-02** Read third time `reading-3`
- **2022-03-02** Reading of substitute waived
- **2022-03-02** Committee substitute agreed to 22106756D-S1
- **2022-03-02** Engrossed by Senate - committee substitute HB1121S1
- **2022-03-02** Passed Senate with substitute (40-Y 0-N) `passage`
- **2022-03-02** Senate substitute agreed to by House 22106756D-S1 (99-Y 0-N)
- **2022-03-02** VOTE: Adoption (99-Y 0-N)
- **2022-03-04** Impact statement from TAX (HB1121S1)
- **2022-03-07** Enrolled
- **2022-03-08** Signed by Speaker
- **2022-03-08** Signed by President
- **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 (HB1121ER)
- **2022-04-11** Approved by Governor-Chapter 690 (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/203149d8-2d66-4c53-8db4-d314286b3840`. Confidence: reported (aggregated from official Virginia legislature records).