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2023 SESSION
HB 1740 Income tax, state; contributions to Virginia College Savings Plan accounts.
Introduced by: Delores L. McQuinn | all patrons ... notes | add to my profiles
SUMMARY AS INTRODUCED:
Income taxation; contributions to Virginia College Savings Plan accounts. Increases the maximum individual income tax deduction for amounts paid or contributed to a prepaid tuition contract or college savings trust account entered into with the Virginia College Savings Plan from $4,000 to $7,500 in taxable year 2023, $11,000 in taxable year 2024, and $15,000 for taxable year 2025 and thereafter. Such amounts shall be adjusted for changes in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). The deduction is limited to $4,000 for taxpayers with federal adjusted gross income that is greater than $100,000 for an individual or $200,000 for married persons filing a joint return.
The bill also creates an individual or corporate deduction, as applicable, of up to $4,000 for the amount a child day center or child day program paid or contributed to a customer's or client's prepaid tuition contract or college savings trust account entered into with the Virginia College Savings Plan.
The bill also provides a nonrefundable income tax credit for taxable years 2023 through 2027 for 35 percent of expenses incurred by a business during the taxable year for contributions into a Virginia College Savings Plan account owned by an employee of the business. If the employee receiving the contribution is a qualified employee, as defined in the bill, the bill specifies that the credit shall not exceed $500 annually for each such employee. If the employee receiving the contribution is a qualified employee who is not highly compensated, as defined in the bill, the bill specifies that the credit shall not exceed $1,000 annually for each such employee. The bill provides that the total amount of tax credits available for a calendar year shall not exceed $5 million and that any unused tax credit may be carried over for three years.
FULL TEXT
HISTORY
- 01/09/23 House: Prefiled and ordered printed; offered 01/11/23 23101641D
- 01/09/23 House: Referred to Committee on Finance
- 01/19/23 House: Assigned Finance sub: Subcommittee #3
- 01/30/23 House: Subcommittee failed to recommend reporting and referring to Appropriations (2-Y 5-N)
- 02/07/23 House: Left in Finance