Source: https://www.legiscan.com/VA/text/HB2086/2019
Timestamp: 2019-10-17 20:29:13
Document Index: 353658557

Matched Legal Cases: ['§58', '§58', '§11046', '§58', '§673', '§58', '§58', '§32', '§58', '§32', '§58', '§58', '§58', '§58', '§58', '§63', '§32', '§58', '§63', '§63', '§ 32']

Bill Text: VA HB2086 | 2019 | Regular Session | Introduced | LegiScan
Bill Text: VA HB2086 | 2019 | Regular Session | Introduced
Virginia House Bill 2086 (Prior Session Legislation)
VA State Legislature page for HB2086
Bill Title: Income tax, state; conformity, increase in standard deduction, refundable income tax credit.
Status: (Introduced) 2019-02-05 - Left in Rules [HB2086 Detail]
Download: Virginia-2019-HB2086-Introduced.html
19103890D
HOUSE BILL NO. 2086 Offered January 7, 2019 A BILL to amend and reenact §§58.1-301, 58.1-322.03, 58.1-339.8, and 63.2-527 of the Code of Virginia, relating to income tax; conformity; increase in standard deduction; refundable income tax credit for low-income taxpayers; emergency. ---------- Patron-- Watts ---------- Committee Referral Pending ----------
1. That §§58.1-301, 58.1-322.03, 58.1-339.8, and 63.2-527 of the Code of Virginia are amended and reenacted as follows:
For taxable years beginning on and after January 1, 2018, but before January 1, 2026, the provisions of §11046 of the Tax Cuts and Jobs Act, P.L. 115-97, related to the suspension of the overall limitation of itemized deductions.
b. Three thousand dollars for single individuals and $6,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return), provided Provided that the taxpayer has not itemized deductions for the taxable year on his federal income tax return: (i) for taxable years beginning before January 1, 2018, and on and after January 1, 2026, $3,000 for single individuals and $6,000 for married persons (one-half of such amount in the case of a married individual filing a separate return); (ii) for taxable years beginning on and after January 1, 2018, but before January 1, 2019, $4,500 for single individuals and $9,000 for married persons (one-half of such amount in the case of a married individual filing a separate return); and (iii) for taxable years beginning on and after January 1, 2019, but before January 1, 2026, an amount equal to the deductions set forth in clause (ii), adjusted each year by the percentage, if any, by which the Chained Consumer Price Index for All Urban Consumers (C-CPI-U), as published by the U.S. Department of Labor or any successor index, for the most recent calendar year differs from the C-CPI-U published at the close of the 12-month period ending on December 31, 2018. In no case shall the amount of the adjusted deduction be less than the amounts set forth in clause (ii). For purposes of this section, any person who may be claimed as a dependent on another taxpayer's return for the taxable year may compute the deduction only with respect to earned income.
§58.1-339.8. Income tax credit for low-income taxpayers.
"Household" means an individual or, in the case of married persons, an individual and his spouse, regardless of whether or not the individual and his spouse file combined or separate Virginia individual income tax returns.
"Poverty guidelines" means the poverty guidelines for the 48 contiguous states and the District of Columbia updated annually in the Federal Register by the U.S. Department of Health and Human Services under the authority of §673(2) of the Omnibus Budget Reconciliation Act of 1981.
"Virginia adjusted gross income" has the same meaning as the term is defined in §58.1-321.
B. 1. For taxable years beginning on and after January 1, 2000, any individual or persons filing a joint return whose family Virginia adjusted gross income does not exceed 100 percent of the poverty guideline amount corresponding to a household of an equal number of persons as listed in the poverty guidelines published during such taxable year, shall be allowed a credit against the tax levied pursuant to §58.1-320 in an amount equal to $300 each for the individual, the individual's spouse, and any person claimed as a dependent on the individual's or married persons' income tax return for the taxable year. For any taxable year in which a husband and wife file separate Virginia income tax returns, the credit provided under this section shall be allowed against the tax for only one of such two tax returns. Additionally, the credit provided under this section shall not be allowed against such tax of a dependent of the individual or of married persons.
2. For taxable years beginning on and after January 1, 2006, any individual or married persons, eligible for a tax credit pursuant to §32 of the Internal Revenue Code, may for the taxable year, in lieu of the credit authorized under subdivision B 1, claim a credit against the tax imposed pursuant to §58.1-320 in an amount equal to 20 percent of the credit claimed by the individual or married persons for federal individual income taxes pursuant to §32 of the Internal Revenue Code for the taxable year. In no case shall a household be allowed a credit pursuant to this subdivision and subdivision B 1 for the same taxable year.
C. 1. The amount of the credit provided pursuant to subsection subdivision B 1 for any taxable year shall not exceed the individual's or married persons' Virginia income tax liability.
2. For taxable years beginning before January 1, 2018, the amount of credit provided pursuant to subdivision B 2 shall not exceed the individual's or married persons' Virginia income tax liability.
3. a. For taxable years beginning on and after January 1, 2018, a portion of the credit provided pursuant to subdivision B 2 in excess of the individual's or married persons' Virginia income tax liability shall be refundable as specified in subdivisions b through l. The refundable portion of the credit provided pursuant to this subdivision 3 shall be claimed on the Virginia income tax return and redeemed by the Tax Commissioner. The refundable portion of the credit provided pursuant to subdivision B 2 shall be as follows:
b. For taxable years beginning on and after January 1, 2018, but before January 1, 2019, 50 percent of such credit.
c. For taxable years beginning on and after January 1, 2019, but before January 1, 2020, 55 percent of such credit.
d. For taxable years beginning on and after January 1, 2020, but before January 1, 2021, 60 percent of such credit.
e. For taxable years beginning on and after January 1, 2021, but before January 1, 2022, 65 percent of such credit.
f. For taxable years beginning on and after January 1, 2022, but before January 1, 2023, 70 percent of such credit.
g. For taxable years beginning on and after January 1, 2023, but before January 1, 2024, 75 percent of such credit.
h. For taxable years beginning on and after January 1, 2024, but before January 1, 2025, 80 percent of such credit.
i. For taxable years beginning on and after January 1, 2025, but before January 1, 2026, 85 percent of such credit.
j. For taxable years beginning on and after January 1, 2026, but before January 1, 2027, 90 percent of such credit.
k. For taxable years beginning on and after January 1, 2027, but before January 1, 2028, 95 percent of such credit.
l. For taxable years beginning on and after January 1, 2028, 100 percent of such credit.
1. The subtraction under subdivision 8 of §58.1-322.02;
2. The subtraction under subdivision 15 of §58.1-322.02;
3. The subtraction under subdivision 16 of §58.1-322.02;
4. The deduction for the additional personal exemption for blind or aged taxpayers under subdivision 2 b of §58.1-322.03; or
5. The deduction under subdivision 5 of §58.1-322.03.
§63.2-527. Notice of earned income tax credit.
The Department shall provide notice regarding the availability of the federal earned income tax credit authorized in §32 of the Internal Revenue Code and the state earned income tax credit for low-income taxpayers authorized in subdivision B 2 of §58.1-339.8 to all recipients of Temporary Assistance for Needy Families pursuant to Chapter 6 (§63.2-600 et seq.), food stamps pursuant to §63.2-801, or medical assistance pursuant to § 32.1-325 who had earned income in the prior tax year based on information available through the Virginia Employment Commission and, according to information made available by the Virginia Department of Taxation, either did not file federal or state income taxes or filed taxes and did not claim the federal or state earned income tax credit. Notice shall be distributed to recipients annually and shall include information on the qualifying income levels, the amount of credit available, the process for applying for the credit, and the availability of assistance in applying for the credit.