HB 887

Abstract

Income taxes. Creates a new income tax bracketfor taxable years beginning on and after January 1, 2024, for incomein excess of $600,000, which is to be taxed at seven percent. Thebill also creates two new tax credits: a child and dependent caretax credit and a family caregiver tax credit. Both tax credits wouldbe refundable for Virginia residents and would be available for taxableyears beginning on and after January 1, 2024, but before January1, 2029. The child and dependent care tax credit would equal 50 percentof the federal tax credit allowed for employment-related expensesfor household and dependent care services. A similar income tax deductionfor employment-related expenses would be sunsetted by the bill. Thefamily caregiver tax credit would apply to expenses incurred by anindividual in caring for an eligible family member, defined in thebill, who requires assistance with one or more activities of dailyliving, also defined in the bill. The family caregiver tax creditequals 50 percent of eligible expenditures incurred by the caregiverup to $1,000. The family caregiver tax credit shall be availableonly to taxpayers that have federal adjusted gross income that isno greater than $100,000 for individuals or $200,000 for marriedpersons.