Delegate Hugo’s Bill to Keep the Defense Industry in Virginia Competitive Signed into Law

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House Bill 1889, has been signed into law by the Governor. HB1889 ensures that the Commonwealth remains competitive in securing high-paying defense sector manufacturing jobs.

HB1889 was in response to a recent ruling by the Virginia Department of Taxation, which created the possibility for localities to impose the BPOL tax on defense manufacturers for certain re-manufacturing and rebuilding work done for the U.S. Government.

HB1889 clarifies that the manufacturing exemption from the Business, Professional, and Occupational License (BPOL) tax includes defense businesses providing manufacturing services to the United States Government.  

One of my top priorities is to ensure that the Commonwealth remains a pro-business state, and this priority is shared by both the General Assembly and the Governor. Together, we are dedicated to finding ways to help Virginia businesses grow and prosper. The Defense Industry plays a critical role in the Commonwealth and these types of manufacturing jobs are very important to maintaining a healthy economy. I am pleased that we were able to work together to pass meaningful legislation that will foster a healthy environment for the defense community and keep these critical manufacturing jobs in Virginia.

This legislation will go into effect on July 1st of this year.