                                 CODE OF VIRGINIA

INCOME TAX CREDIT FOR LOW-INCOME TAXPAYERS (§ 58.1-339.8)

A. For purposes of this section,:
			&#8220;Family Virginia adjusted gross income&#8221; means the combined
Virginia adjusted gross income of an individual, the individual&#8217;s spouse,
and any person claimed as a dependent on the individual&#8217;s or his
spouse&#8217;s income tax return for the taxable year.
			&#8220;Household&#8221; means an individual, or in the case of married
individuals, an individual and his spouse, regardless of whether or not the
individual and his spouse file combined or separate Virginia individual income
tax returns.
			&#8220;Poverty guidelines&#8221; means the poverty guidelines for the 48
contiguous states and the District of Columbia updated annually in the Federal
Register by the U.S. Department of Health and Human Services under the authority
of &#xA7; 673(2) of the Omnibus Budget Reconciliation Act of 1981.
			&#8220;Virginia adjusted gross income&#8221; has the same meaning as the term
is defined in &#xA7; 58.1-321.

B. 1. For taxable years beginning on and after January 1, 2000, any individual
or married individuals filing jointly whose family Virginia adjusted gross
income does not exceed 100 percent of the poverty guideline amount corresponding
to a household of an equal number of persons as listed in the poverty guidelines
published during such taxable year, shall be allowed a nonrefundable credit
against the tax levied pursuant to § 58.1-320 in an amount equal to $300 each
for the individual, the individual&#8217;s spouse, and any person claimed as a
dependent on the individual&#8217;s or married individuals&#8217; income tax
return for the taxable year. For any taxable year in which married individuals
file separate Virginia income tax returns, the credit provided under this
section shall be allowed against the tax for only one of such two tax returns.
Additionally, the credit provided under this section shall not be allowed
against such tax of a dependent of the individual or of married individuals.

   2. For taxable years beginning on and after January 1, 2006, any individual or
   married individuals filing jointly, eligible for a tax credit pursuant to
   &#xA7; 32 of the Internal Revenue Code, may for the taxable year, in lieu of
   the credit authorized under subdivision 1, claim a nonrefundable credit
   against the tax imposed pursuant to &#xA7; 58.1-320 in an amount equal to 20
   percent of the credit claimed by the individual or married individuals for
   federal individual income taxes pursuant to &#xA7; 32 of the Internal Revenue
   Code for the taxable year. In no case shall a household be allowed a credit
   pursuant to this subdivision and subdivision 1 or 3 for the same taxable year.

   3. a. For taxable years beginning on and after January 1, 2022, but before
   January 1, 2025 any individual or married individuals filing jointly, eligible
   for a tax credit pursuant to &#xA7; 32 of the Internal Revenue Code, may for
   the taxable year, in lieu of the credit authorized under subdivision 1 or 2,
   claim a refundable credit against the tax imposed pursuant to &#xA7; 58.1-320
   in an amount equal to 15 percent of the credit claimed by the individual or
   married individuals for federal individual income taxes pursuant to &#xA7; 32
   of the Internal Revenue Code for the taxable year.
   				b. For taxable years beginning on and after January 1, 2025 but before
   January 1, 2027, any individual or married individuals filing jointly may, for
   the taxable year, in lieu of the credit authorized under subdivision 1 or 2,
   claim a refundable credit against the tax imposed pursuant to &#xA7; 58.1-320
   in an amount equal to 20 percent of the credit claimed by the individual or
   married individuals for federal individual income taxes pursuant to &#xA7; 32
   of the Internal Revenue Code for the taxable year.
   				c. The refundable credit claimed pursuant to this subdivision 3 shall be
   claimed on the Virginia income tax return and redeemed by the Tax
   Commissioner. In no case shall a household be allowed a credit pursuant to
   this subdivision 3 and subdivision 1 or 2 for the same taxable year.

C. The amount of the credit claimed pursuant to subdivision B 1 and B 2, or in
the case of a nonresident or a person to which &#xA7; 58.1-303 applies,
subdivision B 3, for any taxable year shall not exceed the individual&#8217;s or
married individuals&#8217; Virginia income tax liability.

D. Notwithstanding any other provision of this section, no credit shall be
allowed pursuant to subsection B in any taxable year in which the individual,
the individual&#8217;s spouse, or both, or any person claimed as a dependent on
such individual&#8217;s or married individuals&#8217; income tax return, claims
one or any combination of the following on his or their income tax return for
such taxable year:

   1. The subtraction under subdivision 8 of &#xA7; 58.1-322.02;

   2. The subtraction under subdivision 15 of &#xA7; 58.1-322.02;

   3. The subtraction under subdivision 16 of &#xA7; 58.1-322.02;

   4. The deduction for the additional personal exemption for blind or aged
   taxpayers under subdivision 2 b of &#xA7; 58.1-322.03; or

   5. The deduction under subdivision 5 of &#xA7; 58.1-322.03.

HISTORY: 2000, c. 397; 2004, Sp. Sess. I, c. 3; 2017, c. 444; 2020, c. 900;
2022, Sp. Sess. I, cc. 1, 2; 2023, Sp. Sess. I, c. 1; 2025, c. 725.