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VA HB243

VA HB243
Corporate welfare tax; imposes on large employers a tax equal to 100% of qualified employee benefit.


summary

Introduced
01/08/2026
In Committee
01/08/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Regular Session

Bill Summary

Corporate welfare tax. Imposes on large employers, as defined in the bill, a corporate welfare tax equal to 100 percent of the qualified employee benefits received by any employees of such large employer residing in the Commonwealth. The bill directs the Department of Taxation to obtain identifying data for individuals receiving qualified federal benefits, as defined by the bill, from the Department of Social Services pursuant to an interagency agreement and to compare such data to employment rosters received quarterly from large employers to determine the amount of qualified federal benefits received by employees of such large employers. The bill also prohibits an employer, in connection with the selection or referral of applicants or candidates for employment, to make inquiries or otherwise seek information relating to whether such applicant receives qualified federal benefits.

AI Summary

This bill establishes a "corporate welfare tax" on large employers, defined as those employing an average of at least 500 employees in the preceding year. This tax will be equal to 100 percent of the "qualified employee benefits" received by employees of these large employers who reside in the Commonwealth. Qualified employee benefits are defined as means-tested federal programs, including Supplemental Nutrition Assistance Program (SNAP) benefits, school lunch and breakfast program eligibility, housing assistance, and Medicaid expenditures for medical assistance. To administer this, the Department of Taxation will work with the Department of Social Services to obtain data on individuals receiving these federal benefits and compare it with quarterly employment rosters submitted by large employers to identify employees receiving them. Additionally, the bill prohibits employers from inquiring about whether an applicant receives these qualified federal benefits during the hiring or referral process.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Continued to next session in Finance (Voice Vote) (on 02/11/2026)

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/20261/HB243
Fiscal Note/Analysis - Fiscal Impact statement From TAX (2/8/2026 12:59 pm) https://lis.blob.core.windows.net/files/1133842.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB243/text/HB243
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