Technology

Income tax subtraction; broadband grant fund awards. Establishes an individual and corporate income tax subtraction for any amount of public grant awards received in the taxable year for the exclusive purpose of planning, constructing, expanding, or improving upon broadband infrastructure and services in the Commonwealth beginning in taxable year 2025.

Virginia Human Rights Act; equal credit opportunities; Virginia Fair Housing Law; nondiscrimination by automated decision systems. Provides that it is an unlawful discriminatory practice for any person to deploy, use, or rely on an automated decision system to make a decision pursuant to the Virginia Human Rights Act, provisions related to equal credit opportunities, or the Virginia Fair Housing Law that results in discrimination or an unlawful disparate impact or that intentionally or knowingly uses variables or data fields that serve as close proxies for protected characteristics. The bill requires a person that deploys, uses, or relies on such a system to (i) disclose the use of such system to any individual who is the subject of such decision; (ii) annually assess such system for bias, disparate impact, and discriminatory outcomes; and (iii) maintain for no fewer than two years from the date a decision is made certain documentation relating to such system.

Employment decisions; automated decision systems; civil penalty. Provides that the Director of the Department of Human Resource Management shall require any state agency that uses an automated decision system as a substantial factor in any employment decision, as those terms are defined in the bill, to (i) ensure that such system and the use of such system complies with federal and state law, (ii) make certain disclosures, (iii) provide an opt-out mechanism, (iv) annually test such system, (v) ensure data security, and (vi) train agency staff on such system. The bill requires the Department and local government employers to establish and publicize a process for applicants for employment and employees to file concerns and complaints regarding the use of automated decision systems in such employment decisions and a process for the investigation and resolution of any such concerns and complaints. The bill also provides that no final employment decision shall be made by an employer without the involvement of a human decision maker, and no employer shall solely use any recommendation or prediction from an automated decision system to make a final employment decision. The bill subjects violating employers to civil penalties.

Microchip and semiconductor manufacturing and supply chain tax credits; Virginia Economic Development Partnership Authority evaluation; report. Creates a series of individual and corporate income tax credits for companies engaged in the microchip and semiconductor manufacturing and supply chain business that between January 1, 2026, and December 31, 2036, (i) invest at least $400 million, (ii) create at least 100 new jobs, (iii) pay an average prevailing wage salary, and (iv) submit a plan for use of and committing $50 million of community investments. The bill creates three refundable tax credits in taxable years 2026 through 2030 in amounts equal to (a) five percent of capital investment expenditures incurred during the year, (b) six percent of child care services expenditures incurred during the year, and (c) 7.5 percent of gross wages paid for each new job created during the year.