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Bill > SB676
VA SB676
VA SB676Income tax, state; removes sunset for standard deduction and earned income tax credit.
summary
Introduced
01/14/2026
01/14/2026
In Committee
01/14/2026
01/14/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Income tax; standard deduction and earned income tax credit. Removes the sunset from and makes permanent 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 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 the current standard deduction amounts for Virginia income tax, which are $8,750 for single individuals and $17,500 for married individuals filing jointly, removing a scheduled decrease that would have reverted these amounts to $3,000 and $6,000 respectively after 2026. Additionally, it makes permanent the increase in Virginia's refundable earned income tax credit, also known as the EITC, from 15 percent to 20 percent of the federal EITC, which was set to expire in 2027. The earned income tax credit is a tax credit for low-to-moderate income working individuals and families, and making these provisions permanent aims to provide ongoing tax relief.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Incorporated by Finance and Appropriations (SB662-Lucas) (15-Y 0-N) (on 02/04/2026)
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/20261/SB676 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/23/2026 2:21 pm) | https://lis.blob.core.windows.net/files/1095654.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/SB676/text/SB676 |
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