VA HB946

Creates a $750 nonrefundable state income tax credit per affordable dwelling unit for eligible landlords, capped at $15,000 per landlord per taxable year

Limits eligible landlords to individuals, small LLCs with 10 or fewer employees, and 501(c)(3) nonprofits; specifically excludes large institutional investors and entities holding more than 50 single-family homes

Requires the Department of Housing and Community Development to certify affordable dwelling units, ensuring monthly rent does not exceed 30% of area median income and units meet safety and habitability standards

Sets a statewide cap of $5 million in total credits per year, allocated on a first-come, first-served basis

Applies to taxable years from January 1, 2026 through December 31, 2030, with unused credits carrying forward up to five years