HB 2639: Income tax, state; creates alternative schooling and public school tax credits.

Official summary

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

Income tax; alternative schooling and public school tax credits. Creates an alternative schooling tax credit as a refundable income tax credit for taxable years 2025 through 2029, for up to $5,000 in qualifying expenses, defined in the bill, incurred by the parent or legal guardian of an eligible student in home education or attending a private school. If the taxpayer's family Virginia adjusted gross income does not exceed 300 percent of federal poverty guidelines, the taxpayer may claim an additional $2,500 refundable tax credit. The bill also creates a public school tax credit as a refundable individual tax credit for taxable years 2025 through 2029, for up to $1,500 in qualifying expenses, defined in the bill, incurred by the parent or legal guardian of a student in public school. If the taxpayer's family Virginia adjusted gross income does not exceed 300 percent of federal poverty guidelines, the taxpayer may claim an additional $2,500 refundable tax credit. The bill allows the taxpayer one credit per eligible student per year and requires the taxpayer to submit purchase receipts to verify qualifying expenses for each credit. The aggregate amount of credits allowable for each credit is limited to $25 million per taxable year and will be allocated by the Department of Taxation on a first-come, first-served basis. In the event that the aggregate amount of credits claimed in a single taxable year is greater than 90 percent of such amount, then such aggregate credit cap amount shall be increased in the immediately succeeding taxable year by 10 percent.

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 4, 2025Left in Finance
2. January 28, 2025Subcommittee failed to recommend reporting (3-Y 4-N)
3. January 28, 2025Subcommittee recommends reporting with amendment(s) (2-Y 4-N)
4. January 26, 2025Impact statement from TAX (HB2639)
5. January 24, 2025Assigned Finance sub: Subcommittee #2
6. January 13, 2025Referred to Committee on Finance
7. January 13, 2025Presented and ordered printed 25102334D