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Bill

HB 1051

Income tax, state; real property tax relief credit.

2026 Regular Session Introduced by Jason Ballard and 30 co-sponsors

Virginia bill creates income tax credit for residents based on real property taxes paid, reducing state income tax liability for homeowners but cutting state revenue with unclear distribution fairness.

Subcommittee recommends laying on the table (7-Y 3-N)
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Bill Summary · HB 1051

Legislative bill overview

HB 1051 proposes to create a state income tax credit for Virginia residents based on real property taxes paid. The bill would allow taxpayers to offset a portion of their state income tax liability with credits tied to their property tax burden, effectively providing tax relief to property owners.

Why is this important

Property taxes represent a significant expense for Virginia homeowners, and this bill attempts to address affordability concerns by leveraging the state income tax system. The measure could influence tax policy priorities and fiscal budgeting, as it would reduce state revenue while potentially benefiting homeowners disproportionately based on property values and locations.

Potential points of contention

  • Revenue impact and funding: The fiscal impact statement suggests meaningful state revenue loss, raising questions about how Virginia would offset reduced income tax collections or whether other programs would face cuts
  • Regressive distribution concerns: Property tax credits may disproportionately benefit higher-income homeowners and areas with higher property values, potentially widening equity gaps between wealthy and lower-income communities
  • Complexity and administration: Implementing a property-tax-based income tax credit adds complexity to tax filing and administration, with unclear eligibility thresholds or phase-out provisions based on the prefiled language

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

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