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Bill > HB372

VA HB372

VA HB372
Income Tax, state; removes sunset from and makes permanent increase in refundable earned tax credit.

summary

Introduced
01/12/2026
In Committee
01/12/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Regular Session

Bill Summary

Earned income tax credit. Removes the sunset from and makes permanent the increase in Virginia's refundable earned income tax credit from 15 percent to 20 percent of the allowable federal earned income tax credit. Under current law, the Virginia refundable earned income tax credit expires in taxable year 2027, and Virginia's nonrefundable earned income tax credit, which has no expiration date, is equal to 20 percent of the federal credit.

AI Summary

This bill makes permanent Virginia's refundable earned income tax credit, which is a tax credit for low-income taxpayers. Specifically, it removes the expiration date for the increase of this credit from 15 percent to 20 percent of the allowable federal earned income tax credit. The federal earned income tax credit (EITC) is a tax credit for low-to-moderate-income working individuals and families, and Virginia's refundable credit means that if the credit is more than the taxpayer's tax liability, the difference is refunded to them. Currently, the higher 20 percent rate was set to expire after taxable year 2027, but this bill ensures it will continue indefinitely.

Committee Categories

Budget and Finance

Sponsors (20)

Last Action

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

bill text

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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/HB372
Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/18/2026 5:51 pm) https://lis.blob.core.windows.net/files/1090057.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB372/text/HB372
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