Income tax, state; conformity, increase in standard deduction, refundable income tax credit. (HB2765)

Introduced By

Del. Dawn Adams (D-Richmond) with support from co-patron Del. Kaye Kory (D-Falls Church)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Income tax; conformity; increase in standard deduction; refundable income tax credit for low-income taxpayers; Revenue Stabilization Fund. Advances the Commonwealth's conformity with federal tax law to December 31, 2018, starting with taxable year 2019. The bill increases the standard deduction to $3,750 for single individuals and $7,500 for married persons filing jointly for taxable years 2019 through 2025. Under current law, the standard deduction is $3,000 for single individuals and $6,000 for married persons filing jointly. The bill allows low-income individuals and married persons to claim either (i) a nonrefundable income tax credit equal to $300 for each individual, his spouse, and each claimed dependent or (ii) an income tax credit equal to 20 percent of the federal earned income tax credit, a portion of which would be refundable. Sixty percent of the value of the credit would be refundable for taxable years 2019 through 2025. Under current law, low-income individuals and married persons may elect either of these amounts; however, both options for claiming the credit are nonrefundable. The bill provides that each year up to $198 million of any additional revenues generated by the federal Tax Cuts and Jobs Act would be transferred to the Revenue Stabilization Fund. Amends § 58.1-301, § 58.1-339.8, § 63.2-527, of the Code of Virginia. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/18/2019Presented and ordered printed 19104577D
01/18/2019Referred to Committee on Rules
01/28/2019Impact statement from TAX (HB2765)
02/05/2019Left in Rules

Post a Public Comment About this Bill



if you have one


(Limited HTML is OK: <a>, <em>, <strong>, <s>)