Virginia House Bill 240 (Prefiled Legislation)

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Spectrum: Partisan Bill (Democrat 10-0)
Status: Introduced on January 4 2024 - 25% progression
Action: 2024-02-07 - Continued to 2025 in Finance by voice vote
Pending: House Finance Committee
Text: Latest bill text (Prefiled) [HTML]

Income tax; contributions to Virginia College Savings Plan Income tax; contributions to Virginia College Savings Plan accounts; report. 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 2024, $11,000 in taxable year 2025, and $15,000 for taxable year 2026 and thereafter. Such amount shall be adjusted for changes in the Consumer Price Index for All Urban Consumers (C-CPI-U) beginning in taxable year 2024. 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 2024 through 2028 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 five years.

Income tax, state; contributions to Virginia College Savings Plan accounts, report.

Del. Delores McQuinn [D]	Del. Nadarius Clark [D]	Del. Kelly Convirs-Fowler [D]	Del. Rozia Henson [D]
Del. Amy Laufer [D]	Del. Michelle Maldonado [D]	Del. Marty Martinez [D]	Del. Irene Shin [D]
Del. Marcus Simon [D]	Del. Joshua Thomas [D]

Date	Chamber	Action
2024-02-07	House	Continued to 2025 in Finance by voice vote
2024-02-02	House	Assigned Finance sub: Subcommittee #1
2024-01-04	House	Referred to Committee on Finance
2024-01-04	House	Prefiled and ordered printed; offered 01/10/24 24101386D

HB240 (Carry Over) 2024-02-07 - Continued to 2025 in Finance by voice vote

Chapter	Article	Section	Citation Type	Statute Text
58	1	322.03	(n/a)	See Bill Text
58	1	402	(n/a)	See Bill Text
58	1	439.12:13	(n/a)	See Bill Text

Type	Source
Summary	https://lis.virginia.gov/cgi-bin/legp604.exe?251+sum+HB240
Text	https://lis.virginia.gov/cgi-bin/legp604.exe?251+ful+HB240+hil
Supplement	https://lis.virginia.gov/cgi-bin/legp604.exe?251+oth+HB240F161+PDF