VA HB405

Creates a refundable state income tax credit for Virginia residents enrolled in qualified health plans through the Health Benefit Exchange whose income exceeds 400% of federal poverty guidelines

Tax credit equals the lesser of the actual monthly premium paid or the difference between the second-lowest-cost silver plan premium and 8.5% of the taxpayer's Virginia adjusted gross income

Applies to taxable years from January 1, 2026 through December 31, 2030

Married couples enrolled in the same plan who file separately may only claim 50% of the certifiable premium amount

Refunds for credits exceeding tax liability must be issued within 90 days of filing, with the State Corporation Commission's Health Benefit Exchange Division certifying eligible premium amounts annually