Virginia · 2025 Regular Session · Bill
HB 887: Income tax, state; creates a new tax bracket.
In committee Official data
- Introduced
- In committee
- Passed one chamber
- Passed both chambers
- Enacted
Last official action: ·Record last updated:
Plain-language summary
HB 887 is a bill introduced in the Virginia House on January 9, 2024. According to its official title, it concerns: Income tax, state; creates a new tax bracket. Primary sponsor: Vivian Watts (Democratic). Most recent recorded action (November 18, 2024): Left in Finance.
Generated automatically from the official title, sponsor list, and status record only. It does not characterize the bill’s purpose or effects. How summaries are written
Official summary
Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.
Income taxes. Creates a new income tax bracket for taxable years beginning on and after January 1, 2024, for income in excess of $600,000, which is to be taxed at seven percent. The bill also creates two new tax credits: a child and dependent care tax credit and a family caregiver tax credit. Both tax credits would be refundable for Virginia residents and would be available for taxable years beginning on and after January 1, 2024, but before January 1, 2029. The child and dependent care tax credit would equal 50 percent of the federal tax credit allowed for employment-related expenses for household and dependent care services. A similar income tax deduction for employment-related expenses would be sunsetted by the bill. The family caregiver tax credit would apply to expenses incurred by an individual in caring for an eligible family member, defined in the bill, who requires assistance with one or more activities of daily living, also defined in the bill. The family caregiver tax credit equals 50 percent of eligible expenditures incurred by the caregiver up to $1,000. The family caregiver tax credit shall be available only to taxpayers that have federal adjusted gross income that is no greater than $100,000 for individuals or $200,000 for married persons.
Sponsors
Sponsors by party (alphabetical): Democratic 1
| Name | Role | Party | Chamber | District |
|---|---|---|---|---|
| Vivian Watts | Primary sponsor | Democratic | House | 14 |
“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.
Recent official actions
- Left in Finance
- Continued to 2025 in Finance (Voice Vote)
- Subcommittee recommends continuing to 2025 (7-Y 0-N)
- Impact statement from TAX (HB887)
- Assigned Finance sub: Subcommittee #3
- Referred to Committee on Finance
- Prefiled and ordered printed; offered 01/10/24 24104545D