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HB 588

Income tax, state; subtractions for military benefits.

2026 Regular Session Introduced by Jason Ballard and 1 co-sponsor

HB 588 would allow Virginia military members to subtract certain military benefits from state taxable income, reducing their tax liability but state revenue.

Subcommittee recommends laying on the table (7-Y 2-N)
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Bill Summary · HB 588

Legislative bill overview

HB 588 proposes to create income tax subtractions for military benefits in Virginia, allowing eligible military members to exclude certain benefits from state taxable income. The bill was referred to the Finance Committee in January 2026 and received a fiscal impact statement before a subcommittee voted to table it in early February.

Why is this important

Military compensation packages often include tax-advantaged benefits, and this proposal would align Virginia state tax law with federal treatment of certain military income. The outcome affects both military households' tax obligations and state revenue, making it relevant to both service members and the state budget.

Potential points of contention

  • Revenue impact: The fiscal impact statement suggests measurable state revenue loss, which may concern lawmakers focused on budget constraints
  • Scope ambiguity: The bill's language doesn't specify which military benefits qualify for subtraction, potentially creating implementation questions or disputes
  • Equity questions: Critics may argue whether preferential tax treatment for military benefits is equitable compared to other public service professions or civilian workers

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

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