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Bill

SB 183

Income tax, state; eligible low-income taxpayers to claim a refundable tax credit.

2025 Regular Session Introduced by Aaron Rouse

Virginia bill creates refundable tax credit for low-income earners, potentially providing cash refunds to qualifying taxpayers with limited earnings.

Left in Finance and Appropriations
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WeVote Research Nonpartisan
Bill Summary · SB 183

Legislative bill overview

SB 183 proposes to establish a refundable state income tax credit for eligible low-income taxpayers in Virginia. The bill would allow qualifying individuals to receive a tax credit that could result in refunds exceeding taxes owed. Specific eligibility thresholds and credit amounts have been subject to subcommittee amendments during the legislative process.

Why is this important

Low-income tax credits directly affect household finances for Virginia's poorest residents, potentially providing hundreds to thousands in annual relief. This type of refundable credit functions as a wage supplement or direct cash assistance, influencing both state budget expenditures and income inequality metrics. The policy choice between refundable versus non-refundable credits represents a fundamental debate about tax policy's role in wealth redistribution.

Potential points of contention

  • Revenue impact and affordability: The state's fiscal capacity to fund refundable credits is uncertain; the TAX impact statement likely detailed costs that may have influenced the committee's continued deliberation
  • Income threshold definition: Determining "eligible low-income" involves political disagreement over where the cutoff should be and how many Virginians qualify
  • Credit amount adequacy: Legislators may dispute whether the credit amount provides meaningful relief or merely symbolic assistance, affecting both support and opposition

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

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