Income tax, state; creates child tax credit.

Plain English Breakdown

The official source material does not provide specific details about the number of families that may qualify or what happens after 2030.

Child Tax Credit in Virginia

This law creates a one-time tax credit for families with children under age 13 who earn less than $100,000 per year and are full-year residents of Virginia.

What This Bill Does

• Creates a one-time tax credit of $300 per eligible dependent child under the age of 13 for taxable years from 2026 to 2030.
• Limits eligibility to households with Virginia adjusted gross income not exceeding $100,000.
• Allows for a refundable credit if the taxpayer is a full-year resident of Virginia and their tax liability is less than the credit amount.
• Makes the credit nonrefundable for part-time residents or those who do not meet residency requirements.

Who It Names or Affects

• Families with children under age 13
• Taxpayers whose household income does not exceed $100,000 and are full-year Virginia residents

Terms To Know

Virginia adjusted gross income

The total income of a taxpayer before deductions and credits, as defined by Virginia tax law.

Refundable credit

A tax credit that can be paid to the taxpayer even if it exceeds their tax liability.

Limits and Unknowns

• The bill does not specify what happens after 2030.
• It is unclear how many families will qualify for this credit based on current income levels.

Official Summary Text

Child tax credit; Virginia adjusted gross income.
Creates a one-time tax credit in taxable years 2026 through 2030 for taxpayers whose households include dependents younger than 13 years of age and whose family Virginia adjusted gross income, defined in the bill, does not exceed $100,000. Such credit shall be in an amount equal to $300 for each such dependent and only one credit may be claimed for each such dependent. The bill provides that if the taxpayer is a resident of the Commonwealth for the full taxable year, the credit is refundable. Otherwise, the credit is nonrefundable.

Current Bill Text

A BILL to amend the Code of Virginia by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered
58.1-339.15
, relating to child tax credit; Virginia adjusted gross income.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered
58.1-339.15
as follows:

§
58.1-339.1
5
. Child tax credit.

A.
For taxable years beginning on and after January 1, 202
6
, but before January 1, 20
3
1
, an individual
or married
individuals
filing
jointly
shall be allowed a

one-time
credit against the tax levied pursuant to §
58.1-320
for
each
dependent member
of
the taxpayer's
household

who is
yo
un
g
er
than
1
3
years of age
. The amount of the credit shall be equal to $
3
00 for
each
such dependent household member.
Only one credit may be claimed per such dependent household member.
The credit allowed by this section shall be allowed only for
an individual or
married
individuals

whose
family Virginia adjusted gross income does not exceed $100,000.
For purposes of this
sub
section, "Virginia adjusted gross income" means federal adjusted gross income for the taxable year with the modifications specified in
§§
58.1-322.01
and
58.1-322.02
.

B.
1. If the taxpayer is a resident of Virginia and not a person to whom §
58.1-303
applies
,
and if
the amount of the credit exceeds the taxpayer's liability for such taxable year, the excess shall be refunded by the Tax Commissioner. Tax credits shall be refunded by the Tax Commissioner on behalf of the Commonwealth for 100 percent of face value. Tax credits shall be refunded within 90 days after the filing date of the income tax return on which the taxpayer applies for the refund.

2.
If the taxpayer is a nonresident or a person to whom §
58.1-303
applies,
the
credit shall be nonrefundable and the
amount of the credit claimed pursuant to this section for any taxable year shall not exceed the individual's or married individuals' Virginia income tax liability.

C
. The Tax Commissioner shall develop guidelines for claiming the credit provided by this section. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§
2.2-4000
et seq.).