Summary: Virginia taxable income; standard deduction.Removes the sunset on elevated standard deduction amounts forsingle individuals and married persons that was scheduled to expirefor taxable years beginning on and after January 1, 2026.

Summary: Income tax; contributions to Virginia College Savings Planaccounts; report. Increases the maximum individual income tax deduction foramounts paid or contributed to a prepaid tuition contract or college savingstrust account entered into with the Virginia College Savings Plan from $4,000to $7,500 in taxable year 2024, $11,000 in taxable year 2025, and $15,000 fortaxable year 2026 and thereafter. Such amount shall be adjusted for changes inthe Consumer Price Index for All Urban Consumers (C-CPI-U) beginning in taxableyear 2024. The deduction is limited to $4,000 for taxpayers with federaladjusted 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, asapplicable, of up to $4,000 for the amount a child day center or child dayprogram paid or contributed to a customer's or client's prepaid tuitioncontract or college savings trust account entered into with the Virginia CollegeSavings Plan.The bill also provides a nonrefundable income tax credit fortaxable years 2024 through 2028 for 35 percent of expenses incurred by abusiness during the taxable year for contributions into a Virginia CollegeSavings Plan account owned by an employee of the business. If the employeereceiving the contribution is a qualified employee, as defined in the bill, thebill specifies that the credit shall not exceed $500 annually for each suchemployee. If the employee receiving the contribution is a qualified employeewho is not highly compensated, as defined in the bill, the bill specifies thatthe credit shall not exceed $1,000 annually for each such employee. The billprovides that the total amount of tax credits available for a calendar year shallnot exceed $5 million and that any unused tax credit may be carried over forfive years.

Summary: Earned income tax credit. Allows eligiblelow-income taxpayers to claim a refundable income tax credit equalto 20 percent of the federal earned income tax credit claimed that year by the taxpayer for the same taxable year. The bill also statesthat individuals who would have been entitled to the federal equivalentof this credit but for the fact that the individual, the individual'sspouse, or one or more of the individual's children does not havea valid social security number are eligible to claim this credit.

Summary: Imposition of income tax. Establishes anew income tax bracket beginning on and after January 1, 2024, that taxes income in excess of $1 million at a rate of 10 percent. Thebill provides that 50 percent of revenues generated by the new taxbracket will be dedicated to providing additional basic aid fundingfor public schools, 30 percent of such revenues will be dedicatedto the Child Care Subsidy Program, and 20 percent of such revenueswill be dedicated to the Virginia Housing Trust Fund.

Summary: Income taxes. Creates a new income tax bracketfor taxable years beginning on and after January 1, 2024, for incomein excess of $600,000, which is to be taxed at seven percent. Thebill also creates two new tax credits: a child and dependent caretax credit and a family caregiver tax credit. Both tax credits wouldbe refundable for Virginia residents and would be available for taxableyears beginning on and after January 1, 2024, but before January1, 2029. The child and dependent care tax credit would equal 50 percentof the federal tax credit allowed for employment-related expensesfor household and dependent care services. A similar income tax deductionfor employment-related expenses would be sunsetted by the bill. Thefamily caregiver tax credit would apply to expenses incurred by anindividual in caring for an eligible family member, defined in thebill, who requires assistance with one or more activities of dailyliving, also defined in the bill. The family caregiver tax creditequals 50 percent of eligible expenditures incurred by the caregiverup to $1,000. The family caregiver tax credit shall be availableonly to taxpayers that have federal adjusted gross income that isno greater than $100,000 for individuals or $200,000 for marriedpersons.

Summary: Child tax credit. Creates a tax credit for taxable years 2024 through 2028 for individuals whose households include dependents younger than the age of 18. The bill provides that the amount of the credit will be equal to $500 for each such dependent for an individual or married persons filing a joint return whose family Virginia adjusted gross income, as defined by Virginia code, does not exceed $100,000. The bill provides that if the taxpayer is a resident of the Commonwealth for the full taxable year, and the amount of such credit exceeds the taxpayer's liability for the taxable year, the excess shall be refunded by the Tax Commissioner.

Summary: Family caregiver tax credit. Creates a nonrefundable income tax credit for taxable years 2024 through 2028 for expensesincurred by an individual in caring for an eligible family member,defined in the bill, who requires assistance with one or more activitiesof daily living, also defined in the bill. The credit equals 50 percentof eligible expenditures incurred by the caregiver up to $1,000. In order to qualify for the credit, the family caregiver must (i) notreceive any compensation or reimbursement for the eligible expendituresand (ii) have federal adjusted gross income that is no greater than$100,000 for an individual or $200,000 for married persons. The billrequires the Tax Commissioner to establish guidelines for claimingthe credit and provides that any unused credit may be carried forwardby the taxpayer for five taxable years following the taxable yearfor which the credit was issued.

Summary: Housing opportunity tax credit. Increases,for calendar years 2023 through 2025, the amount of housing opportunitytax credits that may be claimed from $60 million per calendar yearto $100 million per calendar year.

Summary: Taxation. Decreases, beginning in taxable year 2025, the income tax imposed (i) on income less than $3,000, from two percent to 1.75 percent; (ii) on income in excess of $3,000 but less than $5,000, from three percent to 2.65 percent; (iii) on income in excess of $5,000 but less than $17,000, from five percent to 4.4 percent; and (iv) on income in excess of $17,000, from 5.75 percent to 5.1 percent.The bill increases from 20 to 25 percent, beginning in taxable year 2025, the amount of credit eligible taxpayers may claim pursuant to the income tax credit for low-income taxpayers. The bill also increases the annual aggregate amount of Education Improvement Scholarships tax credits that are available from $25 million to $30 million beginning fiscal year 2025 and each fiscal year thereafter.The bill defines "digital personal property," "streaming," and "taxable service" for the purposes of the retail sales and use tax. The bill increases the sales and use tax from 4.3 percent to 5.2 percent. Amendments are made throughout the bill to impose the sales and use tax on taxable services in addition to tangible personal property. The bill requires that one half of the additional sales and use tax revenues generated by taxable services and digital personal property that is deposited in the Commonwealth Transportation Fund be distributed to the Transportation Partnership Opportunity Fund, and the additional one half of such revenues be distributed to the Interstate 81 Corridor Improvement Fund until June 30, 2031, or until $400 million has been deposited in the Interstate 81 Corridor Improvement Fund. Certain provisions of the bill have a delayed effective date of January 1, 2025.

Summary: Reinstatement of the estate tax. Reinstatesthe estate tax for persons dying on and after July 1, 2024. The billprovides that no estate tax shall be imposed on a gross estate ifthe majority of the assets of the estate are an interest in a closelyheld business or a working farm. The bill designates revenues fromthe estate tax to be used for early childhood care and educationpurposes.

Summary: Sales tax; school construction. Adds PrinceEdward County to the list of localities that, under current law,are authorized to impose an additional local sales and use tax ata rate not to exceed one percent, with the revenue used only forcapital projects for the construction or renovation of schools.

Summary: Sales tax; additional local tax for schools;Stafford County. Adds Stafford County to the list of localitiesthat are authorized to impose an additional local sales tax at arate not to exceed one percent in order to provide revenue for theconstruction or renovation of schools.

Summary: Additional local sales and use tax to supportschools; referendum. Authorizes all counties and cities to imposean additional local sales and use tax at a rate not to exceed onepercent with the revenue used only for capital projects for the constructionor renovation of schools if such levy is approved in a voter referendum.Under current law, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg,Northampton, Patrick, and Pittsylvania Counties and the City of Danvilleare authorized to impose such a tax.

Summary: Additional local sales and use tax to supportschools; referendum. Authorizes all counties and cities to imposean additional local sales and use tax at a rate not to exceed onepercent with the revenue used only for capital projects for the constructionor renovation of schools if such levy is approved in a voter referendum.Under current law, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg,Northampton, Patrick, and Pittsylvania Counties and the City of Danvilleare authorized to impose such a tax.

Summary: Sales tax; additional local tax for schools;City of Newport News. Adds the City of Newport News to the listof localities that are authorized to impose an additional local salestax at a rate not to exceed one percent in order to provide revenuefor the construction or renovation of schools.

Summary: Additional local sales and use tax to support schools; referendum. Authorizes all counties and cities to impose an additional local sales and use tax at a rate not to exceed one percent with the revenue used only for capital projects for the construction or renovation of schools if such levy is approved in a voter referendum. The bill removes the requirement that such a tax must have an expiration date on either (i) the date of the repayment of any bonds or loans used for such capital projects or (ii) a date chosen by the governing body. Under current law, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania Counties and the City of Danville are authorized to impose such a tax. This bill incorporates HB 60, HB 193, HB 458, HB 600, HB 616, HB 1159, and HB 1437 and is identical to SB 14.

Summary: Sales and use tax on services. Levies the retail sales and use tax on the following services: admissions; charges for recreation, fitness, or sports facilities; nonmedical personal services or counseling; dry cleaning and laundry services; companion animal care; residential home repair or maintenance, landscaping, or cleaning services when paid for directly by a resident or homeowner; vehicle and engine repair; repairs or alterations to tangible personal property; storage of tangible personal property; delivery or shipping services; travel, event, and aesthetic planning services; and communications services that are not subject to the communications sales and use tax and are not digital personal property.The bill also imposes the retail sales and use tax on digital personal property, defined in the bill as a digital product delivered electronically that the purchaser owns or has the ability to continually access without having to pay an additional subscription or usage fee to the seller after paying the initial purchase price.Revenues generated by the taxes levied on services and digital personal property shall be allocated in the same manner as other sales and use taxes; however, revenues from the state portion of the sales and use tax that would be allocated to the general fund shall instead be allocated to school divisions as follows: (i) 60 percent shall be distributed to localities on the basis of school-age population and (ii) 40 percent shall be distributed to localities on the basis of the high-need student population in the locality. The bill clarifies that a high-need student population includes students who are (a) automatically certified for free school meals because of participation in social services programs, (b) participants in a program of special education, or (c) English language learners.The bill provides certain exemptions to the sales and use tax on services, including health care services that must be performed by a person licensed or certified by the Department of Health Professions, veterinary services, professional services, Internet access services, and services provided by a person who does not receive more than $2,500 per year in gross receipts for performance of such services. The bill exempts services purchased by a nonprofit organization and services purchased by a homeowners' association or by a landlord for the benefit of his tenant. The bill also repeals the service exemptions currently provided for the sale of custom programs and modification of prewritten programs.The bill imposes the communications sales and use tax on prepaid calling services and on digital subscription services, defined in the bill as services for which the user pays in order to access and use software, reading materials, or other digital data or applications for a defined period of time, which products the user does not own or have permanent access to outside of such period of time.

Summary: Individual income tax; distribution of revenues;local school construction. Requires distribution of one percentof the individual income tax revenues collected from residents ofa locality to be distributed to that locality. The bill requiressuch funds to be used for school construction or renovation purposesand to be repaid to the state if used for any other purpose. Thebill provides that a locality shall be required to maintain its levelof expenditure for public school purposes as a condition of receivingthe income tax revenues; however, a locality may reduce its levelof expenditure to account for a loss of revenues resulting from areduction in machinery and tools taxes or license taxes.

Summary: Sales tax; school construction. Adds theCity of Portsmouth to the list of localities that, under currentlaw, are authorized to impose an extra one percent local sales taxto provide revenue for constructing or renovating schools.