Bill > SB951

This bill removes several sunset provisions related to Virginia state income tax, effectively making permanent some tax benefits that were previously set to expire in 2026. Specifically, the bill eliminates the sunset for the standard deduction, which means the current higher standard deduction amounts of $8,500 for single individuals and $17,000 for married individuals will continue indefinitely, instead of reverting to the lower $3,000 and $6,000 amounts. The bill also removes the 2026 sunset for the partially refundable earned income tax credit, which allows individuals to claim a credit equal to 15 percent of their federal earned income tax credit. Additionally, the bill makes permanent the elective income tax on pass-through entities, which allows certain business entities to pay state taxes at the entity level. These changes provide more long-term tax predictability for Virginia taxpayers and businesses by eliminating temporary tax provisions that were scheduled to expire.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/SB951