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Bill

Bill

HB 1123

Income tax, state; credit for certain health care providers.

2026 Regular Session

Virginia bill proposing income tax credit for certain healthcare providers, currently stalled in subcommittee after recommendation to table the measure.

Subcommittee recommends laying on the table (7-Y 3-N)
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Bill Summary · HB 1123

Legislative bill overview

HB 1123 proposes to create a state income tax credit for certain healthcare providers in Virginia. The bill was prefiled in January 2026 and referred to the House Finance Committee, where a subcommittee recently voted to lay it on the table (effectively suspending consideration).

Why is this important

Healthcare workforce retention and recruitment are significant policy challenges in many states. Tax credits targeting healthcare providers could influence where medical professionals choose to practice, potentially affecting healthcare access in underserved areas. The fiscal impact statement suggests measurable budget implications that lawmakers are weighing.

Potential points of contention

  • Fiscal cost: The bill generated a fiscal impact statement, indicating government revenue loss that must be justified against other budget priorities
  • Scope definition: The phrase "certain health care providers" is vague and raises questions about which professionals qualify and why others are excluded
  • Effectiveness debate: Whether tax credits are the most efficient policy tool for healthcare workforce issues compared to direct subsidies, loan forgiveness, or other incentives

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

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