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HB 2567

Income tax, state; subtraction for military benefits received by members of uniformed services.

2025 Regular Session Introduced by Jay Leftwich

HB 2567 allows Virginia military service members to subtract certain military benefits from state income tax liability, reducing their tax burden.

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Bill Summary · HB 2567

Legislative bill overview

HB 2567 would allow Virginia military service members to subtract certain military benefits from their state taxable income. This creates a tax deduction specifically for uniformed services members receiving designated military compensation packages. The bill aims to provide tax relief for active duty, reserve, and National Guard personnel.

Why is this important

Military compensation often includes various allowances and benefits (housing, subsistence, etc.) that may currently be taxed at the state level despite being non-taxable federally. This bill would align Virginia's tax treatment with federal policy and reduce the overall tax burden on military families. Given Virginia's significant military population and installations, this could affect thousands of service members and their household finances.

Potential points of contention

  • Revenue impact: The Department of Taxation's impact statement (referenced in recent actions) likely details state revenue loss; lawmakers must balance military support against budget constraints
  • Definition scope: Which specific military benefits qualify for subtraction remains unclear—overly broad definitions could expand costs significantly, while narrow ones may provide minimal relief
  • Fairness questions: Some may argue targeted tax breaks for one occupational group, however patriotic, set precedent for similar demands from other professions or public servants

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

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