Bill > SB732

This bill establishes new refundable income tax credits for parents or legal guardians in Planning District 15 for educational expenses incurred for eligible students, covering taxable years 2026 through 2030. For students attending nonpublic schools or being homeschooled, parents can claim up to $5,000 in qualifying expenses, with a limit of $2,000 for computer, internet, or transportation costs. For students attending public schools, the credit is up to $1,500, with a $600 limit for computer, internet, or transportation costs. Households with a family Virginia adjusted gross income not exceeding 300 percent of federal poverty guidelines (which are annual federal poverty thresholds) can receive an additional $2,500 credit for nonpublic school expenses (with an increased limit of $3,000 for computer, internet, or transportation) or an additional $2,500 for public school expenses (with an increased limit of $1,600 for computer, internet, or transportation). The bill defines "eligible student" as a child under 18 domiciled in a qualified opportunity zone within Planning District 15, and "qualifying expenses" include items like textbooks, supplies, tuition (for nonpublic schools), educational assistance for students with disabilities, testing fees, and transportation. Taxpayers can only claim one credit per eligible student per year and must provide purchase receipts for verification. The total amount of credits available annually for each type of school is capped at $25 million, with a provision to increase the cap by 10% in the following year if 90% of the cap is used in a given year, and credits are awarded on a first-come, first-served basis. Any excess credit beyond the taxpayer's tax liability will be refunded.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/SB732