                                 CODE OF VIRGINIA

VIRGINIA TAXABLE INCOME; DEDUCTIONS (§ 58.1-322.03)

In computing Virginia taxable income pursuant to § 58.1-322, there shall be
deducted from Virginia adjusted gross income as defined in § 58.1-321:

1. a. The amount allowable for itemized deductions for federal income tax
purposes where the taxpayer has elected for the taxable year to itemize
deductions on his federal return, but reduced by the amount of income taxes
imposed by the Commonwealth or any other taxing jurisdiction and deducted on
such federal return and increased by an amount that, when added to the amount
deducted under &#xA7; 170 of the Internal Revenue Code for mileage, results in a
mileage deduction at the state level for such purposes at a rate of 18 cents per
mile; or
			b. Provided that the taxpayer has not itemized deductions for the taxable
year on his federal income tax return: (i) for taxable years beginning before
January 1, 2019, and on and after January 1, 2027 $3,000 for single individuals
and $6,000 for married persons (one-half of such amounts in the case of a
married individual filing a separate return); (ii) for taxable years beginning
on and after January 1, 2019, but before January 1, 2022, $4,500 for single
individuals and $9,000 for married persons (one-half of such amounts in the case
of a married individual filing a separate return); (iii) for taxable years
beginning on and after January 1, 2022, but before January 1, 2024, $8,000 for
single individuals and $16,000 for married persons (one-half of such amounts in
the case of a married individual filing a separate return); (iv) for taxable
years beginning on and after January 1, 2024, but before January 1, 2025, $8,500
for single individuals and $17,000 for married persons (one-half of such amounts
in the case of a married individual filing a separate return); and (v) for
taxable years beginning on and after January 1, 2025, but before January 1,
2027, $8,750 for single individuals and $17,500 for married persons (one-half of
such amounts in the case of a married individual filing a separate return). For
purposes of this section, any person who may be claimed as a dependent on
another taxpayer&#8217;s return for the taxable year may compute the deduction
only with respect to earned income.

2. a. A deduction in the amount of $930 for each personal exemption allowable to
the taxpayer for federal income tax purposes.
			b. Each blind or aged taxpayer as defined under &#xA7; 63(f) of the Internal
Revenue Code shall be entitled to an additional personal exemption in the amount
of $800.
			The additional deduction for blind or aged taxpayers allowed under this
subdivision shall be allowable regardless of whether the taxpayer itemizes
deductions for the taxable year for federal income tax purposes.

3. A deduction equal to the amount of employment-related expenses upon which the
federal credit is based under &#xA7; 21 of the Internal Revenue Code for
expenses for household and dependent care services necessary for gainful
employment.

4. An additional $1,000 deduction for each child residing for the entire taxable
year in a home under permanent foster care placement as defined in &#xA7;
63.2-908, provided that the taxpayer can also claim the child as a personal
exemption under &#xA7; 151 of the Internal Revenue Code.

5. a. A deduction in the amount of $12,000 for individuals born on or before
January 1, 1939.
			b. A deduction in the amount of $12,000 for individuals born after January 1,
1939, who have attained the age of 65. This deduction shall be reduced by $1 for
every $1 that the taxpayer&#8217;s adjusted federal adjusted gross income
exceeds $50,000 for single taxpayers or $75,000 for married taxpayers. For
married taxpayers filing separately, the deduction shall be reduced by $1 for
every $1 that the total combined adjusted federal adjusted gross income of both
spouses exceeds $75,000.
			For the purposes of this subdivision, &#8220;adjusted federal adjusted gross
income&#8221; means federal adjusted gross income minus any benefits received
under Title II of the Social Security Act and other benefits subject to federal
income taxation solely pursuant to &#xA7; 86 of the Internal Revenue Code, as
amended.

6. The amount an individual pays as a fee for an initial screening to become a
possible bone marrow donor, if (i) the individual is not reimbursed for such fee
or (ii) the individual has not claimed a deduction for the payment of such fee
on his federal income tax return.

7. a. A deduction shall be allowed to the purchaser or contributor for the
amount paid or contributed during the taxable year for a prepaid tuition
contract or college savings trust account entered into with the Commonwealth
Savers Plan, pursuant to Chapter 7 (&#xA7; 23.1-700 et seq.) of Title 23.1.
Except as provided in subdivision b, the amount deducted on any individual
income tax return in any taxable year shall be limited to $4,000 per prepaid
tuition contract or college savings trust account. No deduction shall be allowed
pursuant to this subdivision 7 if such payments or contributions are deducted on
the purchaser&#8217;s or contributor&#8217;s federal income tax return. If the
purchase price or annual contribution to a college savings trust account exceeds
$4,000, the remainder may be carried forward and subtracted in future taxable
years until the purchase price or college savings trust contribution has been
fully deducted; however, except as provided in subdivision b, in no event shall
the amount deducted in any taxable year exceed $4,000 per contract or college
savings trust account. Notwithstanding the statute of limitations on assessments
contained in &#xA7; 58.1-312, any deduction taken hereunder shall be subject to
recapture in the taxable year or years in which distributions or refunds are
made for any reason other than (i) to pay qualified higher education expenses,
as defined in &#xA7; 529 of the Internal Revenue Code or (ii) the
beneficiary&#8217;s death, disability, or receipt of a scholarship. For the
purposes of this subdivision, &#8220;purchaser&#8221; or
&#8220;contributor&#8221; means the person shown as such on the records of the
Commonwealth Savers Plan as of December 31 of the taxable year. In the case of a
transfer of ownership of a prepaid tuition contract or college savings trust
account, the transferee shall succeed to the transferor&#8217;s tax attributes
associated with a prepaid tuition contract or college savings trust account,
including, but not limited to, carryover and recapture of deductions.
			b. A purchaser of a prepaid tuition contract or contributor to a college
savings trust account who has attained age 70 shall not be subject to the
limitation that the amount of the deduction not exceed $4,000 per prepaid
tuition contract or college savings trust account in any taxable year. Such
taxpayer shall be allowed a deduction for the full amount paid for the contract
or contributed to a college savings trust account, less any amounts previously
deducted.

8. The total amount an individual actually contributed in funds to the Virginia
Public School Construction Grants Program and Fund, established in Chapter 11.1
(&#xA7; 22.1-175.1 et seq.) of Title 22.1, provided that the individual has not
claimed a deduction for such amount on his federal income tax return.

9. An amount equal to 20 percent of the tuition costs incurred by an individual
employed as a primary or secondary school teacher licensed pursuant to Chapter
15 (&#xA7; 22.1-289.1 et seq.) of Title 22.1 to attend continuing teacher
education courses that are required as a condition of employment; however, the
deduction provided by this subdivision shall be available only if (i) the
individual is not reimbursed for such tuition costs and (ii) the individual has
not claimed a deduction for the payment of such tuition costs on his federal
income tax return.

10. The amount an individual pays annually in premiums for long-term health care
insurance, provided that the individual has not claimed a deduction for federal
income tax purposes, or, for taxable years beginning before January 1, 2014, a
credit under &#xA7; 58.1-339.11. For taxable years beginning on and after
January 1, 2014, no such deduction for long-term health care insurance premiums
paid by the individual during the taxable year shall be allowed if the
individual has claimed a federal income tax deduction for such taxable year for
long-term health care insurance premiums paid by him.

11. Contract payments to a producer of quota tobacco or a tobacco quota holder,
or their spouses, as provided under the American Jobs Creation Act of 2004 (P.L.
108-357), but only to the extent that such payments have not been subtracted
pursuant to subsection D of &#xA7; 58.1-402, as follows:
			a. If the payment is received in installment payments, then the recognized
gain may be subtracted in the taxable year immediately following the year in
which the installment payment is received.
			b. If the payment is received in a single payment, then 10 percent of the
recognized gain may be subtracted in the taxable year immediately following the
year in which the single payment is received. The taxpayer may then deduct an
equal amount in each of the nine succeeding taxable years.

12. An amount equal to 20 percent of the sum paid by an individual pursuant to
Chapter 6 (&#xA7; 58.1-600 et seq.), not to exceed $500 in each taxable year, in
purchasing for his own use the following items of tangible personal property:
(i) any clothes washers, room air conditioners, dishwashers, and standard size
refrigerators that meet or exceed the applicable energy star efficiency
requirements developed by the U.S. Environmental Protection Agency and the U.S.
Department of Energy; (ii) any fuel cell that (a) generates electricity using an
electrochemical process, (b) has an electricity-only generation efficiency
greater than 35 percent, and (c) has a generating capacity of at least two
kilowatts; (iii) any gas heat pump that has a coefficient of performance of at
least 1.25 for heating and at least 0.70 for cooling; (iv) any electric heat
pump hot water heater that yields an energy factor of at least 1.7; (v) any
electric heat pump that has a heating system performance factor of at least 8.0
and a cooling seasonal energy efficiency ratio of at least 13.0; (vi) any
central air conditioner that has a cooling seasonal energy efficiency ratio of
at least 13.5; (vii) any advanced gas or oil water heater that has an energy
factor of at least 0.65; (viii) any advanced oil-fired boiler with a minimum
annual fuel-utilization rating of 85; (ix) any advanced oil-fired furnace with a
minimum annual fuel-utilization rating of 85; and (x) programmable thermostats.

13. The lesser of $5,000 or the amount actually paid by a living donor of an
organ or other living tissue for unreimbursed out-of-pocket expenses directly
related to the donation that arose within 12 months of such donation, provided
that the donor has not taken a medical deduction in accordance with the
provisions of &#xA7; 213 of the Internal Revenue Code for such expenses. The
deduction may be taken in the taxable year in which the donation is made or the
taxable year in which the 12-month period expires.

14. For taxable years beginning on and after January 1, 2013, the amount an
individual age 66 or older with earned income of at least $20,000 for the year
and federal adjusted gross income not in excess of $30,000 for the year pays
annually in premiums for (i) a prepaid funeral insurance policy covering the
individual or (ii) medical or dental insurance for any person for whom
individual tax filers may claim a deduction for such premiums under federal
income tax laws. As used in this subdivision, &#8220;earned income&#8221; means
the same as that term is defined in &#xA7; 32(c) of the Internal Revenue Code.
The deduction shall not be allowed for any portion of such premiums paid for
which the individual has (a) been reimbursed, (b) claimed a deduction for
federal income tax purposes, (c) claimed a deduction or subtraction under
another provision of this section, or (d) claimed a federal income tax credit or
any income tax credit pursuant to this chapter.

15. Business interest disallowed as a deduction pursuant to &#xA7; 163(j) of the
Internal Revenue Code:
			a. For taxable years beginning on and after January 1, 2018, but before
January 1, 2022, 20 percent of such disallowed business interest;
			b. For taxable years beginning on and after January 1, 2022, but before
January 1, 2024, 30 percent of such disallowed business interest;
			c. For taxable years beginning on and after January 2, 2024, 50 percent of
such disallowed business interest.
			For purposes of subdivision 15, &#8220;business interest&#8221; means the
same as that term is defined under &#xA7; 163(j) of the Internal Revenue Code.

16. For taxable years beginning on and after January 1, 2019, the actual amount
of real and personal property taxes imposed by the Commonwealth or any other
taxing jurisdiction not otherwise deducted solely on account of the dollar
limitation imposed on individual deductions by &#xA7; 164(b)(6)(B) of the
Internal Revenue Code.

17. For taxable years beginning before January 1, 2021, up to $100,000 of the
amount that is not deductible when computing federal adjusted gross income
solely on account of the portion of subdivision B 10 of &#xA7; 58.1-301 related
to Paycheck Protection Program loans.

18. For taxable years beginning on and after January 1, 2022, but before January
1, 2025, the lesser of $500 or the actual amount paid or incurred for eligible
educator qualifying expenses. For purposes of this subdivision, &#8220;eligible
educator&#8221; means an individual who for at least 900 hours during the
taxable year in which the credit under this section is claimed served as a
teacher licensed pursuant to Chapter 15 (&#xA7; 22.1-289.1 et seq.) of Title
22.1, instructor, student counselor, principal, special needs personnel, or
student aide serving accredited public or private primary and secondary school
students in Virginia, and &#8220;qualifying expenses&#8221; means 100 percent of
the amount paid or incurred by an eligible educator during the taxable year for
participation in professional development courses and the purchase of books,
supplies, computer equipment (including related software and services), other
educational and teaching equipment, and supplementary materials used directly in
that individual&#8217;s service to students as an eligible educator, provided
that such purchases were neither reimbursed nor claimed as a deduction on the
eligible educator&#8217;s federal income tax return for such taxable year.

19. For taxable years beginning on and after January 1, 2026, the amount paid or
cost incurred for installing a qualifying upgrade required to interconnect a
triggering project. No deduction shall be allowed under this section for a
taxpayer who has claimed a deduction under subsection I of &#xA7; 58.1-402 for
the same amount paid or cost incurred to install such qualifying upgrade.
			For purposes of this subdivision, &#8220;qualifying upgrade&#8221; and
&#8220;triggering project&#8221; have the same meanings as provided for those
terms in &#xA7; 56-596.5.

HISTORY: 2017, c. 444; 2019, cc. 17, 18; 2021, Sp. Sess. I, cc. 117, 118, 552;
2022, cc. 3, 19, 648; 2022, Sp. Sess. I, cc. 1, 6; 2023, Sp. Sess. I, c. 1;
2024, c. 217; 2025, cc. 615, 658, 725.