VA SB 732

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Description

Income tax; nonpublic and public school tax credits. Creates a refundable nonpublic school and a refundable public school tax credit for taxable years 2026 through 2030 for (i) up to $5,000 in qualifying expenses, defined in the bill, incurred by the parent or legal guardian of an eligible student domiciled within Planning District 15 and enrolled in home education or attending a private school or (ii) up to $1,500 in qualifying expenses incurred by the parent or legal guardian of an eligible student domiciled within Planning District 15 and enrolled in a public school. However, the bill limits such amounts that may be used for qualifying expenses incurred for computer expenses, internet access expenses, or transportation-related purposes to $2,000 and $600 for such taxpayers, respectively. If the taxpayer's family Virginia adjusted gross income does not exceed 300 percent of federal poverty guidelines, the taxpayer may claim an additional $2,500 refundable tax credit and may use up to an additional $1,000 for qualifying expenses incurred for computer expenses, internet access expenses, or transportation-related purposes. The bill allows the taxpayer one credit for one eligible student per year and requires the taxpayer to submit purchase receipts to verify qualifying expenses for each credit. The aggregate amount of credits allowable for each credit is limited to $25 million per taxable year. In the event that the aggregate amount of credits claimed in a single taxable year is greater than 90 percent of such amount, such aggregate credit cap amount shall be increased in the immediately succeeding taxable year by 10 percent.