SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2019 SESSION

  • | print version

HB 2765 Income tax, state; conformity, increase in standard deduction, refundable income tax credit.

Introduced by: Dawn M. Adams | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Income tax; conformity; increase in standard deduction; refundable income tax credit for low-income taxpayers; Revenue Stabilization Fund. Advances the Commonwealth's conformity with federal tax law to December 31, 2018, starting with taxable year 2019. The bill increases the standard deduction to $3,750 for single individuals and $7,500 for married persons filing jointly for taxable years 2019 through 2025. Under current law, the standard deduction is $3,000 for single individuals and $6,000 for married persons filing jointly.

The bill allows low-income individuals and married persons to claim either (i) a nonrefundable income tax credit equal to $300 for each individual, his spouse, and each claimed dependent or (ii) an income tax credit equal to 20 percent of the federal earned income tax credit, a portion of which would be refundable. Sixty percent of the value of the credit would be refundable for taxable years 2019 through 2025. Under current law, low-income individuals and married persons may elect either of these amounts; however, both options for claiming the credit are nonrefundable.

The bill provides that each year up to $198 million of any additional revenues generated by the federal Tax Cuts and Jobs Act would be transferred to the Revenue Stabilization Fund.


FULL TEXT

HISTORY