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.
HB1004 creates a new Virginia individual income tax credit for taxpayers with dependent household members under age 13. For taxable years beginning on and after January 1, 2026, and before January 1, 2031, eligible taxpayers may claim a one-time credit of $300 for each qualifying child, with only one credit allowed per dependent. The credit is limited to taxpayers with family Virginia adjusted gross income of $100,000 or less.
The bill makes the credit refundable for Virginia residents who are not subject to the special nonresident rules in § 58.1-303, meaning any credit amount above the taxpayer’s liability would be paid out by the Tax Commissioner within 90 days of filing. For nonresidents and taxpayers covered by § 58.1-303, the credit would be nonrefundable and limited to the amount of Virginia income tax owed. The Tax Commissioner would also be required to issue guidelines for claiming the credit, and those guidelines would be exempt from the Administrative Process Act.
HB1004 would add a new section to Title 58.1 of the Code of Virginia establishing a temporary child tax credit tied to Virginia adjusted gross income. It would affect individual income tax administration by creating a new refundable credit for qualifying resident taxpayers and a nonrefundable version for certain nonresidents, while also requiring the Tax Commissioner to implement guidance outside the normal APA rulemaking process. The bill would primarily affect families with children under 13 and incomes at or below $100,000, as well as the state revenue system through reduced income tax collections and potential refunds.
The available record shows no committee transcript or recorded votes, so there is no documented debate or formal vote-based sentiment to assess. Based on the bill’s structure, it appears designed as a family tax relief measure, which typically draws support from lawmakers seeking to reduce child-related costs and provide targeted tax relief. The bill’s referral status of “Left in Finance” suggests it did not advance from committee during the available legislative history.
The main policy questions likely concern the cost of the credit to state revenues, whether the $100,000 income cap is set appropriately, and whether the credit should be refundable for residents. Another possible point of contention is the temporary nature of the credit, which runs only through tax year 2030, and the administrative choice to exempt Tax Commissioner guidelines from the Administrative Process Act. Because there are no transcripts or votes, no specific legislators or stakeholder groups are identified as taking positions in the available materials.