Right to life; tax credit for each birth of a dependent member of a taxpayer's household.
Impact
The legislation is set to have a significant impact on families in Virginia by providing a financial incentive to encourage childbirth. The proposed tax credit could assist lower and middle-income families, enabling them to better manage the financial implications associated with expanding their households. Furthermore, by situating the credit in relation to the poverty guidelines, the bill aims to target assistance towards those most in need, aligning state support with federal standards of poverty assessment.
Summary
SB1529 proposes a new tax credit known as the 'Right to Life' tax credit, aimed at providing financial support to families. Under the provisions of this bill, individuals and married couples with a Virginia adjusted gross income not exceeding 400% of the poverty guidelines would be eligible for a refundable tax credit of $250 for each dependent child born during a taxable year, beginning in 2023 and extending through 2027. The bill articulates that medical records must support the claim for the dependent's birth, ensuring adherence to verification standards for the credits issued.
Contention
There are concerns regarding the aggregate limits on the total amount of available credits, capped at $25 million per year. In the event of demand exceeding this amount, the Department of Taxation may allocate credits on a pro-rata basis, raising questions about how such a system would be perceived by families expecting to receive this assistance. The potential administrative burden created by the allocation process could result in ambiguity and dissatisfaction among those in need of these credits, especially if the distribution mechanism is not clearly defined or communicated.
Voting_history
The bill was passed by the Senate on February 1, 2023, with a vote of 13 in favor and 3 against, indicating a significant level of support among legislators. This voting outcome suggests that the bill aligns with the current political priorities aiming to support family growth and address income disparities through direct tax incentives.