Bill Text: VA HB716 | 2018 | Regular Session | Prefiled
Bill Title: Low-income taxpayers; refundable income tax credit.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2018-02-13 - Left in Finance [HB716 Detail]
Download: Virginia-2018-HB716-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §§58.1-339.8 and 63.2-527 of the Code of Virginia are amended and reenacted as follows:
§58.1-339.8. Income tax credit for low-income taxpayers.
A. As used in this section, unless the context requires otherwise:
"Family Virginia adjusted gross income" means the combined Virginia adjusted gross income of an individual, the individual's spouse, and any person claimed as a dependent on the individual's or his spouse's income tax return for the taxable year.
"Household" means an individual and, in the case of married persons, the 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 nonrefundable 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 nonrefundable
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 or 3 for the same taxable
year.
3. For taxable years beginning on and after January 1, 2018, 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 1 or 2, claim a refundable 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. The refundable credit shall be claimed on the Virginia income tax return and redeemed by the Tax Commissioner. In no case shall a household be allowed a credit pursuant to this subdivision and subdivision 1 or 2 for the same taxable year.
For purpose of this
subdivision, "household" means an individual and in the case of
married persons, the individual and his spouse regardless of whether or not the
individual and his spouse file combined or separate Virginia individual income
tax returns.
C. The amount of the credit provided pursuant to subsection
subdivision B 1 or 2
for any taxable year shall not exceed the individual's or married persons'
Virginia income tax liability.
D. Notwithstanding any other provision of this section, no credit shall be allowed pursuant to subsection B in any taxable year in which the individual, the individual's spouse, or both, or any person claimed as a dependent on such individual's or married persons' income tax return, claims one or any combination of the following on his or their income tax return for such taxable year:
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 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.
2. That the provisions of this act shall become effective for taxable years beginning on and after January 1, 2018.
