{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-422.5.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-422.5.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-422.5.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-422.5.html"}],"law_id":76648,"edition_id":1,"section_id":76648,"structure_id":13460,"section_number":"58.1-422.5","catch_line":"(Contingent effective date \u2014 See Editor’s note) Internet root infrastructure providers","history":"2023, cc. 405, 406.","full_text":"A\n\nAs used in this section:\n\t\t\t“Authority” means the Virginia Economic Development Partnership Authority.\n\t\t\t“Eligible planning district” means Planning District 8.\n\t\t\t“Internet root infrastructure provider” means an entity and its affiliated entities that is designated to operate one or more of the 13 Internet root servers of the Internet Assigned Names Authority (IANA) root and functions as the authoritative directory for one or more Top-Level Domains. This term does not include an Internet service provider, cable service provider, or similar company.\n\t\t\t“Internet root server of the IANA root” means a Domain Name System server for one of the 13 root identities (A. – M.) that answers requests for the Domain Name System root zone of the Internet, redirecting requests for each Top-Level Domain to its respective nameservers.\n\t\t\t“Memorandum of understanding” means a performance agreement or related document entered into by an Internet root infrastructure provider and the Authority on or after January 1, 2023, but before December 1, 2023, that sets forth the requirements for commitments to the Commonwealth.B\n\n1. For taxable years beginning on or after January 1, 2023, but before January 1, 2030, an Internet root infrastructure provider shall be subject to the provisions of subdivision B 3 of \u00a7 58.1-416 only if the Authority certifies to the Department that the taxpayer has at least 550 full-time employees with an average annual salary of $175,000 in an eligible planning district, has entered into a memorandum of understanding with the Authority, and has met the terms of such agreement.2\n\nFor taxable years beginning on or after January 1, 2030, if the Authority certifies to the Department that all requirements of the memorandum of understanding have been satisfied, no additional certifications shall be required, and the Internet root infrastructure provider shall continue to be subject to the provisions of subdivision B 3 of § 58.1-416 in future taxable years.C\n\nThe General Assembly finds that the presence of the Internet root infrastructure provider industry is essential to the continued fiscal health of the Commonwealth. If any provision of this section is for any reason held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, that provision shall not be deemed severable.","order_by":null,"text":{"0":{"id":275154,"text":"As used in this section:\n\t\t\t“Authority” means the Virginia Economic Development Partnership Authority.\n\t\t\t“Eligible planning district” means Planning District 8.\n\t\t\t“Internet root infrastructure provider” means an entity and its affiliated entities that is designated to operate one or more of the 13 Internet root servers of the Internet Assigned Names Authority (IANA) root and functions as the authoritative directory for one or more Top-Level Domains. This term does not include an Internet service provider, cable service provider, or similar company.\n\t\t\t“Internet root server of the IANA root” means a Domain Name System server for one of the 13 root identities (A. – M.) that answers requests for the Domain Name System root zone of the Internet, redirecting requests for each Top-Level Domain to its respective nameservers.\n\t\t\t“Memorandum of understanding” means a performance agreement or related document entered into by an Internet root infrastructure provider and the Authority on or after January 1, 2023, but before December 1, 2023, that sets forth the requirements for commitments to the Commonwealth.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":275155,"text":"1. For taxable years beginning on or after January 1, 2023, but before January 1, 2030, an Internet root infrastructure provider shall be subject to the provisions of subdivision B 3 of \u00a7 58.1-416 only if the Authority certifies to the Department that the taxpayer has at least 550 full-time employees with an average annual salary of $175,000 in an eligible planning district, has entered into a memorandum of understanding with the Authority, and has met the terms of such agreement.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":275156,"text":"For taxable years beginning on or after January 1, 2030, if the Authority certifies to the Department that all requirements of the memorandum of understanding have been satisfied, no additional certifications shall be required, and the Internet root infrastructure provider shall continue to be subject to the provisions of subdivision B 3 of § 58.1-416 in future taxable years.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"C"},"3":{"id":275157,"text":"The General Assembly finds that the presence of the Internet root infrastructure provider industry is essential to the continued fiscal health of the Commonwealth. If any provision of this section is for any reason held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, that provision shall not be deemed severable.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2"}},"ancestry":[{"id":13460,"edition_id":1,"name":"Taxation of Corporations","identifier":"10","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:56","date_modified":"2026-06-26 03:44:56","permalink":{"id":253359,"object_type":"structure","relational_id":13460,"identifier":"10","token":"58.1\/I\/3\/10","url":"\/58.1\/I\/3\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60955,"structure_id":13460,"section_number":"58.1-400","catch_line":"Imposition of tax","url":"\/58.1-400\/","token":"58.1\/I\/3\/10\/58.1-400","metadata":false},{"id":58533,"structure_id":13460,"section_number":"58.1-400.1","catch_line":"Minimum tax on telecommunications companies","url":"\/58.1-400.1\/","token":"58.1\/I\/3\/10\/58.1-400.1","metadata":false},{"id":77310,"structure_id":13460,"section_number":"58.1-400.2","catch_line":"Taxation of electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers","url":"\/58.1-400.2\/","token":"58.1\/I\/3\/10\/58.1-400.2","metadata":false},{"id":79891,"structure_id":13460,"section_number":"58.1-400.3","catch_line":"Minimum tax on certain electric suppliers","url":"\/58.1-400.3\/","token":"58.1\/I\/3\/10\/58.1-400.3","metadata":false},{"id":85449,"structure_id":13460,"section_number":"58.1-400.4","catch_line":"Minimum tax on home service contract providers","url":"\/58.1-400.4\/","token":"58.1\/I\/3\/10\/58.1-400.4","metadata":false},{"id":75981,"structure_id":13460,"section_number":"58.1-401","catch_line":"Exemptions and exclusions","url":"\/58.1-401\/","token":"58.1\/I\/3\/10\/58.1-401","metadata":false},{"id":56970,"structure_id":13460,"section_number":"58.1-402","catch_line":"Virginia taxable income","url":"\/58.1-402\/","token":"58.1\/I\/3\/10\/58.1-402","metadata":false},{"id":65538,"structure_id":13460,"section_number":"58.1-403","catch_line":"Additional modifications to determine Virginia taxable income for certain corporations","url":"\/58.1-403\/","token":"58.1\/I\/3\/10\/58.1-403","metadata":false},{"id":61129,"structure_id":13460,"section_number":"58.1-404","catch_line":"Reserved","url":"\/58.1-404\/","token":"58.1\/I\/3\/10\/58.1-404","metadata":false},{"id":84403,"structure_id":13460,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","url":"\/58.1-405\/","token":"58.1\/I\/3\/10\/58.1-405","metadata":false},{"id":56464,"structure_id":13460,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","url":"\/58.1-405.1\/","token":"58.1\/I\/3\/10\/58.1-405.1","metadata":false},{"id":56080,"structure_id":13460,"section_number":"58.1-406","catch_line":"Allocation and apportionment of income","url":"\/58.1-406\/","token":"58.1\/I\/3\/10\/58.1-406","metadata":false},{"id":56963,"structure_id":13460,"section_number":"58.1-407","catch_line":"How dividends allocated","url":"\/58.1-407\/","token":"58.1\/I\/3\/10\/58.1-407","metadata":false},{"id":86858,"structure_id":13460,"section_number":"58.1-408","catch_line":"What income apportioned and how","url":"\/58.1-408\/","token":"58.1\/I\/3\/10\/58.1-408","metadata":false},{"id":76197,"structure_id":13460,"section_number":"58.1-409","catch_line":"Property factor","url":"\/58.1-409\/","token":"58.1\/I\/3\/10\/58.1-409","metadata":false},{"id":54428,"structure_id":13460,"section_number":"58.1-410","catch_line":"Valuation of property owned or rented","url":"\/58.1-410\/","token":"58.1\/I\/3\/10\/58.1-410","metadata":false},{"id":80735,"structure_id":13460,"section_number":"58.1-411","catch_line":"Average value of property","url":"\/58.1-411\/","token":"58.1\/I\/3\/10\/58.1-411","metadata":false},{"id":60991,"structure_id":13460,"section_number":"58.1-412","catch_line":"Payroll factor","url":"\/58.1-412\/","token":"58.1\/I\/3\/10\/58.1-412","metadata":false},{"id":65358,"structure_id":13460,"section_number":"58.1-413","catch_line":"When compensation deemed paid or accrued in this Commonwealth","url":"\/58.1-413\/","token":"58.1\/I\/3\/10\/58.1-413","metadata":false},{"id":74292,"structure_id":13460,"section_number":"58.1-414","catch_line":"Sales factor","url":"\/58.1-414\/","token":"58.1\/I\/3\/10\/58.1-414","metadata":false},{"id":78515,"structure_id":13460,"section_number":"58.1-415","catch_line":"When sales of tangible personal property deemed in the Commonwealth","url":"\/58.1-415\/","token":"58.1\/I\/3\/10\/58.1-415","metadata":false},{"id":55363,"structure_id":13460,"section_number":"58.1-416","catch_line":"(Contingent effective date \u2014 See Editor's note) When certain other sales deemed in the Commonwealth","url":"\/58.1-416\/","token":"58.1\/I\/3\/10\/58.1-416","metadata":false},{"id":86205,"structure_id":13460,"section_number":"58.1-417","catch_line":"Motor carriers; 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This law was first created in 2023. The record of its establishment is cataloged in chapters 405<\/a> and 406<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":55363,"section_number":"58.1-416","catch_line":"(Contingent effective date \u2014 See Editor's note) When certain other sales deemed in the Commonwealth","order_by":null,"url":"\/58.1-416\/"}],"refers_to":[{"id":55363,"section_number":"58.1-416","catch_line":"(Contingent effective date \u2014 See Editor's note) When certain other sales deemed in the Commonwealth","order_by":null,"url":"\/58.1-416\/"}],"permalink":{"id":253489,"object_type":"law","relational_id":76648,"identifier":"58.1-422.5","token":"58.1\/I\/3\/10\/58.1-422.5","url":"\/58.1-422.5\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-422.5\/","token":"58.1\/I\/3\/10\/58.1-422.5","dublin_core":{"Title":"(Contingent effective date \u2014 See Editor’s note) Internet root infrastructure providers","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-422.5","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Authority<\/span>” means the Virginia Economic Development Partnership Authority<\/span>.\n\t\t\t“Eligible planning district<\/span>” means Planning District 8.\n\t\t\t“Internet root infrastructure provider<\/span>” means an entity and its affiliated<\/span> entities that is designated to operate one or more of the 13 Internet root servers of the Internet Assigned Names Authority<\/span> (IANA) root and functions as the authoritative directory for one or more Top-Level Domains. This term does not include an Internet service provider, cable service provider, or similar company.\n\t\t\t“Internet root server of the IANA root<\/span>” means a Domain Name System server for one of the 13 root identities (A. – M.) that answers requests for the Domain Name System root zone of the Internet, redirecting requests for each Top-Level Domain to its respective nameservers.\n\t\t\t“Memorandum of understanding<\/span>” means a performance agreement or related document entered into by an Internet root infrastructure provider<\/span> and the Authority<\/span> on or after January 1, 2023, but before December 1, 2023, that sets forth the requirements for commitments to the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. For taxable years beginning on or after January 1, 2023, but before January 1, 2030, an Internet root infrastructure provider<\/span> shall be subject to the provisions of subdivision B 3 of \u00a7 58.1-416<\/a> only if the Authority<\/span> certifies to the Department<\/span> that the taxpayer<\/span> has at least 550 full-time employees with an average annual salary of $175,000 in an eligible planning district<\/span>, has entered into a memorandum of understanding<\/span> with the Authority<\/span>, and has met the terms of such agreement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For taxable years beginning on or after January 1, 2030, if the Authority<\/span> certifies to the Department<\/span> that all requirements of the memorandum of understanding<\/span> have been satisfied, no additional certifications shall be required, and the Internet root infrastructure provider<\/span> shall continue to be subject to the provisions of subdivision B 3 of § 58.1-416<\/a> in future taxable years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The General Assembly finds that the presence of the Internet root infrastructure provider<\/span> industry is essential to the continued fiscal health of the Commonwealth. If any provision of this section is for any reason held to be invalid or unconstitutional by the decision of a court<\/span> of competent jurisdiction<\/span>, that provision shall not be deemed severable. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n(CONTINGENT EFFECTIVE DATE \u2014 SEE EDITOR’S NOTE) INTERNET ROOT\nINFRASTRUCTURE PROVIDERS (\u00a7 58.1-422.5)\n\nA. As used in this section:\n\t\t\t“Authority” means the Virginia Economic Development Partnership\nAuthority.\n\t\t\t“Eligible planning district” means Planning District 8.\n\t\t\t“Internet root infrastructure provider” means an entity and its\naffiliated entities that is designated to operate one or more of the 13 Internet\nroot servers of the Internet Assigned Names Authority (IANA) root and functions\nas the authoritative directory for one or more Top-Level Domains. This term does\nnot include an Internet service provider, cable service provider, or similar\ncompany.\n\t\t\t“Internet root server of the IANA root” means a Domain Name\nSystem server for one of the 13 root identities (A. – M.) that answers\nrequests for the Domain Name System root zone of the Internet, redirecting\nrequests for each Top-Level Domain to its respective nameservers.\n\t\t\t“Memorandum of understanding” means a performance agreement or\nrelated document entered into by an Internet root infrastructure provider and\nthe Authority on or after January 1, 2023, but before December 1, 2023, that\nsets forth the requirements for commitments to the Commonwealth.\n\nB. 1. For taxable years beginning on or after January 1, 2023, but before\nJanuary 1, 2030, an Internet root infrastructure provider shall be subject to\nthe provisions of subdivision B 3 of \u00a7 58.1-416 only if the Authority certifies\nto the Department that the taxpayer has at least 550 full-time employees with an\naverage annual salary of $175,000 in an eligible planning district, has entered\ninto a memorandum of understanding with the Authority, and has met the terms of\nsuch agreement.\n\n 2. For taxable years beginning on or after January 1, 2030, if the Authority\n certifies to the Department that all requirements of the memorandum of\n understanding have been satisfied, no additional certifications shall be\n required, and the Internet root infrastructure provider shall continue to be\n subject to the provisions of subdivision B 3 of § 58.1-416 in future\n taxable years.\n\nC. The General Assembly finds that the presence of the Internet root\ninfrastructure provider industry is essential to the continued fiscal health of\nthe Commonwealth. If any provision of this section is for any reason held to be\ninvalid or unconstitutional by the decision of a court of competent\njurisdiction, that provision shall not be deemed severable.\n\nHISTORY: 2023, cc. 405, 406.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}