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1998 SESSION

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SB 638 Family income tax credit.

Introduced by: Joseph V. Gartlan, Jr. | all patrons    ...    notes | add to my profiles

SUMMARY:

Earned income tax credit. Provides a $300 credit to individuals whose Virginia AGI does not exceed the maximum family Virginia AGI for each eligible child. An eligible child is one the taxpayer claims as a dependent and is 17 years of age or younger. The maximum family Virginia AGI for 1998 ranges from $11,000 for two persons in a family to $23,000 for six people. For each year thereafter the maximum family Virginia AGI shall increase three percent above the preceding year. The amount of the credit shall not exceed the taxpayer's Virginia income tax liability. The bill allows a refundable credit for individuals whose earned income does not exceed $19,000. The amount of the credit is equal to a percentage of their federal earned-income credit. For individuals earning $11,000 or less, the credit is 10 percent of the federal credit. As an individual's income increases by increments of $1,000, the amount of the state credit declines by one percent of the federal credit amount, with individuals having an income between $18,000 and $19,000 receiving a credit of two percent of the amount of the federal credit. The credit will be available for taxable years beginning on and after January 1, 2000. The measure will not become effective unless the Department of Health and Human Services determines that the tax credit qualifies under the Commonwealth's TANF Plan.


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