A BILL to amend and reenact § 58.1-322.02 of the Code of Virginia, relating to individual income tax; subtractions; Segal AmeriCorps Education Award.
HB1454 amends Virginia’s individual income tax subtraction statute to add a new subtraction for amounts received as income from, or otherwise pursuant to, the Segal AmeriCorps Education Award. The new subtraction applies to taxable years beginning on and after January 1, 2026, and specifically excludes the Silver Scholar education award and the Summer of Service education award. In practical terms, the bill would allow qualifying AmeriCorps award recipients to exclude those amounts from Virginia taxable income to the extent they are included in federal adjusted gross income.
The bill makes a targeted change to § 58.1-322.02, which is Virginia’s long list of income tax subtractions. It does not alter the structure of the tax code broadly, but it adds another category of income that may be subtracted in computing Virginia taxable income. Because the subtraction is tied to a specific federal program, the bill would primarily affect individual taxpayers who receive the Segal AmeriCorps Education Award and file Virginia income tax returns.
The available legislative history shows no recorded votes or committee debate, but the bill was left in the House Appropriations Committee. That suggests the measure did not advance out of committee. With no transcript material available, there is no documented floor or committee sentiment beyond the bill’s introduction and referral.
Based on the bill’s subject matter, the likely policy rationale is to provide tax relief to AmeriCorps participants and align Virginia tax treatment with the educational service award’s public-service purpose. There is no explicit opposition in the record provided, but the fact that it stalled in Appropriations may indicate concern about revenue impact, prioritization, or the cumulative effect of adding another subtraction to the income tax code. No specific stakeholder objections are documented in the materials provided.
HB1454 would amend § 58.1-322.02 of the Code of Virginia to add a new individual income tax subtraction for Segal AmeriCorps Education Award income beginning with taxable years on and after January 1, 2026. This would reduce Virginia taxable income for eligible recipients to the extent the award is included in federal adjusted gross income, thereby lowering state tax liability for those taxpayers. The bill would not create a new credit or deduction structure; it would expand the existing list of statutory subtractions in Virginia’s income tax law.
The bill appears to have been introduced as a narrow, supportive tax measure for AmeriCorps participants, with no recorded committee testimony or votes showing direct opposition or support. Its referral to and remaining in Appropriations suggests it did not gain enough momentum to move forward, but the available record does not show a contentious public debate. Overall, the sentiment in the materials is neutral to favorable toward providing a targeted tax benefit, with the legislative outcome indicating limited advancement rather than clear controversy.
No specific points of contention are documented in the provided transcripts or votes because none are available. The most likely areas of concern, based on the bill’s placement in Appropriations, would be the fiscal cost of adding another income subtraction and whether the tax preference should be extended to this particular federal education award. The bill also draws a line by excluding the Silver Scholar and Summer of Service education awards, but the record does not show any discussion of that distinction.