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VA SB662

VA SB662
Taxation & revenues; extends sunsets for standard deduction and refundable earned income tax


summary

Introduced
01/14/2026
In Committee
01/14/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Regular Session

Bill Summary

Taxation and revenues of the Commonwealth. Extends the sunset from January 1, 2027, to January 1, 2029, for the standard deduction amounts of $8,750 for single individuals and $17,500 for married individuals filing jointly. Under current law, the standard deduction is scheduled to revert to $3,000 for single individuals and $6,000 for married individuals filing jointly after taxable year 2026. The bill also extends the sunset from January 1, 2027, to January 1, 2029, for 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 extends the sunset date for certain Virginia tax provisions, meaning these provisions will remain in effect for an additional two years. Specifically, the standard deduction amounts for individuals and married couples filing jointly, which were set to revert to lower amounts after 2026, will now remain at their current levels of $8,750 for single filers and $17,500 for joint filers until January 1, 2029. Additionally, the bill extends the increased rate for Virginia's refundable earned income tax credit, which is a credit for low-income workers based on their federal tax credit, from 15 percent to 20 percent of the federal credit, also until January 1, 2029. This extension provides continued tax relief for eligible low-income individuals and families.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Left in Finance and Appropriations (on 02/17/2026)

bill text


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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/SB662
Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/28/2026 10:58 am) https://lis.blob.core.windows.net/files/1099138.PDF
BillText https://lis.virginia.gov/bill-details/20261/SB662/text/SB662
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