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Bill

HB 458

Income tax, corporate and state; subtraction for broadband grant fund awards.

2026 Regular Session Introduced by Paul Krizek

Bill allows corporations and individuals receiving Virginia broadband grants to deduct that income from state taxes, reducing tax liability for grant recipients.

Subcommittee recommends laying on the table (7-Y 3-N)
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Bill Summary · HB 458

Legislative bill overview

HB 458 would allow Virginia corporations and individuals to claim a tax subtraction (deduction) for income derived from awards or grants received from the state's broadband grant fund. This means taxable income would be reduced by the amount of broadband grant funding received, lowering tax liability for recipients.

Why is this important

Broadband infrastructure expansion is a significant policy priority, particularly in rural areas. This tax incentive aims to encourage participation in Virginia's broadband grant program by reducing the tax burden on recipients, potentially making such grants more attractive and stimulating broadband development investment across the state.

Potential points of contention

  • Revenue impact: Tax deductions reduce state revenue; the fiscal impact statement suggests concerns about quantifiable revenue loss that legislators weighed when voting to table the bill
  • Equity questions: Benefits primarily recipients of broadband grants (likely businesses/entities), raising fairness concerns about which taxpayers receive preferential treatment
  • Policy effectiveness: Unclear whether a tax deduction sufficiently incentivizes broadband investment compared to direct grants or other mechanisms, or whether it represents efficient use of tax revenue

Compiled from official sources — confirm details with the bill’s official record.

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