Bill > HB2524

This bill modifies Virginia's tax code to eliminate the current cap on military benefits that can be subtracted from taxable income for tax years beginning on or after January 1, 2026. Previously, the law had gradually increased the maximum subtraction amount for military benefits from $10,000 in 2022 to $40,000 in 2025, with specific restrictions on who could claim these subtractions. Under the new provision, individuals will be able to subtract the total amount of their military benefits from their taxable income, without any dollar limit. The bill defines "military benefits" broadly, including military retirement income, qualified military benefits, Survivor Benefit Plan payments, and other military-related income. This change applies to military benefits received by individuals of any age, and the subtraction cannot be claimed if another credit or deduction has already been taken for the same income. The modification aims to provide more comprehensive tax relief for military personnel and veterans by removing the previous monetary restrictions on military benefit subtractions.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB2524