Child tax credit; creates a credit for taxable years 2024 through 2028.
If enacted, HB 969 would amend the Code of Virginia, specifically adding a new section that outlines the parameters under which the child tax credit would function. The legislation could have significant implications for state tax policies as it introduces a new form of tax relief that could benefit thousands of families across Virginia. Additionally, the passage of the bill may indicate a shift in legislative priorities toward supporting families, particularly in the aftermath of economic challenges posed by inflation and other financial strains.
House Bill 969 introduces a refundable child tax credit aimed at assisting families in Virginia. For the taxable years beginning January 1, 2024, and ending on December 31, 2028, individuals and married couples filing jointly will be entitled to a credit of $500 per dependent under the age of 18. This credit is targeted at families whose adjusted gross income does not exceed $100,000, ensuring that financial relief is provided to middle- and lower-income families within the state. The bill's intent is to stimulate economic support for households and alleviate the financial burden of raising children.
While there is a general consensus on the importance of providing financial support to families, some potential points of contention may arise regarding the eligibility criteria and the impact on state revenues. The bill may face scrutiny over the income threshold established for eligibility, with concerns that it could exclude many families who are struggling financially but fall just above the income limit. Furthermore, discussions may also revolve around how this new tax credit could affect other state-funded programs and services, as lawmakers consider the fiscal implications of expanding tax credits in a budget-conscious environment.