Bill > HB1717

This bill modifies Virginia's income tax credit for low-income taxpayers by changing the existing earned income tax credit (EITC) provisions. The bill increases the refundable tax credit from 15% to 20% of the federal EITC for eligible low-income taxpayers starting in the tax year. Specifically, the bill allows individuals or married couples who are eligible for the federal EITC to claim a refundable state tax credit equal to 20% of their federal credit, replacing the previous option of either a 20% nonrefundable credit or a 15% refundable credit. The bill also clarifies that individuals who would have been eligible for the federal EITC but lack a valid social security number can still claim the credit. The legislation maintains existing definitions related to family income, household, and poverty guidelines, and continues to impose restrictions on claiming the credit for taxpayers who have claimed certain other tax subtractions or deductions. This change aims to provide greater tax relief for low-income workers by increasing the state's earned income tax credit.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB1717