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VA HB403
Bill
Status
Introduced
1/12/2026
Primary Sponsor
David Reid
Click for details
AI Summary
- Creates a refundable state income tax credit for qualified taxpayers equal to 20% of their federal child care tax credit (IRC § 21), available to families with income up to 400% of federal poverty guidelines
- Establishes a separate refundable tax credit for employers covering 50% of qualified child care expenditures, including costs of acquiring, operating, or contracting with licensed child day centers
- Caps the employer credit at $500,000 per taxpayer annually, with inflation adjustments beginning January 1, 2027, based on the Chained Consumer Price Index
- Limits total credits to $10 million per taxable year for each program (individual and employer credits)
- Both credits apply to taxable years from January 1, 2026 through December 31, 2030, with refunds required within 90 days of filing
Legislative Description
Income tax, state; credits for child care-related expenses.
Last Action
Left in Finance
2/18/2026
Committee Referrals
Finance1/12/2026
Full Bill Text
No bill text available