Bill
Bill > SB1085
summary
Introduced
01/07/2025
01/07/2025
In Committee
01/07/2025
01/07/2025
Crossed Over
Passed
Dead
02/22/2025
02/22/2025
Introduced Session
2025 Regular Session
Bill Summary
Income tax; alternative schooling and public school tax credits. Creates an alternative schooling tax credit as a refundable income tax credit for taxable years 2025 through 2029, for up to $5,000 in qualifying expenses, defined in the bill, incurred by the parent or legal guardian of an eligible student in home education or attending a private school. If the taxpayer's family Virginia adjusted gross income does not exceed 300 percent of federal poverty guidelines, the taxpayer may claim an additional $2,500 refundable tax credit. The bill also creates a public school tax credit as a refundable individual tax credit for taxable years 2025 through 2029, for up to $1,500 in qualifying expenses, defined in the bill, incurred by the parent or legal guardian of a student in public school. If the taxpayer's family Virginia adjusted gross income does not exceed 300 percent of federal poverty guidelines, the taxpayer may claim an additional $2,500 refundable tax credit. The bill allows the taxpayer one credit per eligible student per year and requires the taxpayer to submit purchase receipts to verify qualifying expenses for each credit. The aggregate amount of credits allowable for each credit is limited to $25 million per taxable year and will be allocated by the Department of Taxation on a first-come, first-served basis. In the event that the aggregate amount of credits claimed in a single taxable year is greater than 90 percent of such amount, then such aggregate credit cap amount shall be increased in the immediately succeeding taxable year by 10 percent.
AI Summary
This bill creates two new tax credits for Virginia taxpayers with school-age children: an alternative schooling tax credit and a public school tax credit, both applicable for tax years 2025-2029. The alternative schooling tax credit allows parents or legal guardians of eligible students in home education or private schools to claim up to $5,000 in refundable tax credits for qualifying expenses like instructional materials, home instruction courses, or private school tuition. For households with a family adjusted gross income at or below 300% of federal poverty guidelines, an additional $2,500 refundable credit is available. Similarly, the public school tax credit provides up to $1,500 in refundable credits for qualifying expenses for students enrolled in public schools, with the same $2,500 additional credit for lower-income households. Both credits are limited to one credit per eligible student per year, with a total aggregate credit cap of $25 million annually, allocated on a first-come, first-served basis. If the credits reach 90% of the annual cap, the cap will automatically increase by 10% the following year. To claim either credit, taxpayers must submit purchase receipts and provide specific information about the student's educational setting, and any excess credit will be refunded by the Tax Commissioner within 90 days of filing.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
House Finance - Subcommittee #2 Committee Hearing (16:00:00 1/28/2025 House South Subcommittee Room - 210) (on 01/28/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20251/SB1085 |
| Fiscal Note/Analysis - Impact statement from TAX (SB1085) | https://lis.blob.core.windows.net/files/1023232.PDF |
| BillText | https://lis.virginia.gov/bill-details/20251/SB1085/text/SB1085 |
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