Makes Higher Virginia Earned Income Credit Permanent
Virginia · HB372 · Introduced Jan 12, 2026
Why it matters
Low-income workers who claim the federal earned income credit would keep a state credit at the 20 percent rate after 2026. Without this change, the higher rate would expire.
What it does
- Removes the January 1, 2027 end date for the 20 percent refundable credit
- Sets the credit at 20 percent of the federal earned income tax credit
- A refundable credit can pay out even when a filer owes no Virginia income tax
Status
Latest action (2026-07-21): Continued from last session
About this bill
Would remove the end date on a higher Virginia tax credit for workers. The refundable credit would stay at 20 percent of the federal earned income credit instead of 15 percent.
Perspectives
💬 The case for
Anti-poverty groups would likely say the credit helps working families keep more of their pay. They would argue that ending it would raise taxes on low-income workers.
💬 The case against
Some state budget groups would likely say the credit adds to state costs every year. They may argue it should be reviewed in each budget instead of set permanently.
Sponsored by
Sponsor details for this state bill are at the source link.
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