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VA HB33
Bill
Status
Introduced
12/23/2025
Primary Sponsor
Joseph McNamara
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AI Summary
- Removes the January 1, 2027 sunset date for the elective pass-through entity tax, making the provision permanent for taxable years beginning on and after January 1, 2022
- Pass-through entities may elect annually to pay a 5.75% income tax at the entity level rather than having income taxed at the individual owner level
- Eligible owners of electing pass-through entities receive a refundable credit against their individual income tax equal to their pro rata share of the entity-level tax paid
- The election allows pass-through entity owners to effectively deduct state and local taxes beyond the federal $10,000 SALT deduction cap imposed by the 2017 Tax Cuts and Jobs Act
Legislative Description
Income tax, state; pass-through entities, sunset.
Last Action
Left in Finance
2/18/2026
Committee Referrals
Finance12/23/2025
Full Bill Text
No bill text available