HB 1135: Income tax, state; tax credit for affordable housing projects.

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

Income tax; credit for affordable housing projects. Provides, for taxable years 2026 through 2030, a nonrefundable income tax credit for qualifying taxpayers, defined in the bill as taxpayers that, during the taxable year, own a direct or indirect interest through one or more pass-through entities, in an affordable housing project, also defined in the bill. The credit amount shall be equal to the product of (i) the portion of such taxpayer's ownership in such affordable housing project and (ii) the sum of 50 percent of the difference between the fair market value of each unit rented to a qualifying tenant and the rent actually charged to such tenant for the unit, computed for that portion of the taxable year in which the unit was rented to such tenant. The bill defines a qualifying tenant as a tenant with a Virginia adjusted gross income less than 120 percent of the area median income, adjusted for family size. The aggregate amount of credits allowable under the provisions of the bill shall not exceed $5 million per taxable year.

Sponsors

Sponsors by party (alphabetical): Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 18, 2026Left in Finance
2. February 9, 2026Subcommittee recommends laying on the table (8-Y 3-N)
3. February 7, 2026Fiscal Impact statement From TAX (2/7/2026 8:27 pm)
4. February 5, 2026Assigned HFIN sub: Subcommittee #1
5. January 14, 2026Referred to Committee on Finance
6. January 14, 2026Prefiled and ordered printed; Offered 01-14-2026 26101869D