Income tax, state; toll charges for disabled veterans tax credit.
If enacted, HB2707 will amend the Code of Virginia to effectively reduce the income tax burden among disabled veterans by providing them with a specific credit against toll charges incurred while using public infrastructure. It will allow such veterans to apply for this credit in any taxable year within the stipulated time frame, thus easing their financial obligations related to transportation. Furthermore, any unused portion of the credit over the taxpayer's liability may be carried forward for up to five years, ensuring that eligible veterans can benefit from the credit even if their current tax liability is less than the credit amount.
House Bill 2707 aims to provide a nonrefundable income tax credit for documented toll charges incurred by disabled veterans in Virginia. The bill specifies a definition for 'disabled veteran' as those rated with a 100 percent service-connected, permanent and total disability by the U.S. Department of Veterans Affairs. The measure is set to be effective for taxable years starting from January 1, 2025, until January 1, 2030, establishing a credit limit of $100 or the documented toll charges, whichever is lesser. This legislation recognizes the additional financial burdens faced by disabled veterans when utilizing toll roads and similar avenues.
While the bill is primarily aimed at supporting disabled veterans, potential points of contention may arise regarding the fiscal implications for the state's budget. Critics may argue about the strain this tax credit could place on state finances, particularly amid varying opinions on veterans' issues and public spending. However, proponents of the bill emphasize the importance of supporting veterans who have made significant sacrifices for their country, suggesting that this credit could be a small yet meaningful gesture of appreciation.