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VA SB143

VA SB143
Income tax, state; subtractions for income attributable to overtime.


summary

Introduced
01/07/2026
In Committee
01/07/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Regular Session

Bill Summary

Individual income tax subtractions; overtime. Establishes an individual income tax subtraction for income attributable to overtime in an amount equal to (i) 25 percent of the federal overtime deduction for taxable year 2026 and (ii) 50 percent of the federal overtime deduction for taxable year 2027 and thereafter.

AI Summary

This bill establishes a new subtraction for individual income tax for income earned from overtime work. For taxable years beginning on or after January 1, 2026, but before January 1, 2027, taxpayers can subtract 25% of the overtime deduction they are permitted under Section 2205 of the Internal Revenue Code (IRC). For taxable years beginning on or after January 1, 2027, this subtraction increases to 50% of the federal overtime deduction. The IRC, or Internal Revenue Code, is the body of federal law that governs U.S. income tax. This provision aims to provide tax relief to individuals who work overtime, encouraging them to earn additional income.

Committee Categories

Budget and Finance

Sponsors (15)

Last Action

Continued to next session in Finance and Appropriations (9-Y 5-N) (on 01/20/2026)

bill text


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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/SB143
Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/17/2026 9:40 am) https://lis.blob.core.windows.net/files/1089563.PDF
BillText https://lis.virginia.gov/bill-details/20261/SB143/text/SB143
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