Virginia HB 1522: Income tax, state; subtractions for volunteer firefighters and emergency medical services personnel.

Bill Text

2023SESSION
INTRODUCED
23102523D
1 HOUSEBILLNO.1522
2 OfferedJanuary11,2023
3 PrefiledJanuary5,2023
4 A BILL to amend and reenact § 58.1-322.02, as it is currently effective and as it shall become effective,
5 of the Code of Virginia, relating to Virginia taxable income; subtractions; volunteer firefighters and
6 volunteer emergency medical services personnel.
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Patrons––FowlerandKory
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9 ReferredtoCommitteeonFinance
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11 Be it enacted by the General Assembly of Virginia:
12 1. That § 58.1-322.02, as it is currently effective and as it shall become effective, of the Code of
13 Virginia is amended and reenacted as follows:
14 § 58.1-322.02. (Effective until date pursuant to Va. Const., Art. IV, § 13) Virginia taxable
15 income; subtractions.
16 In computing Virginia taxable income pursuant to § 58.1-322, to the extent included in federal
17 adjusted gross income, there shall be subtracted:
18 1. Income derived from obligations, or on the sale or exchange of obligations, of the United States
19 and on obligations or securities of any authority, commission, or instrumentality of the United States to
20 the extent exempt from state income taxes under the laws of the United States, including, but not
21 limited to, stocks, bonds, treasury bills, and treasury notes but not including interest on refunds of
22 federal taxes, interest on equipment purchase contracts, or interest on other normal business transactions.
23 2. Income derived from obligations, or on the sale or exchange of obligations, of the Commonwealth
24 or of any political subdivision or instrumentality of the Commonwealth.
25 3. Benefits received under Title II of the Social Security Act and other benefits subject to federal
26 income taxation solely pursuant to §86 of the Internal Revenue Code.
27 4. Up to $20,000 of disability income, as defined in § 22(c)(2)(B)(iii) of the Internal Revenue Code;
28 however, any person who claims a deduction under subdivision 5 of § 58.1-322.03 may not also claim a
29 subtraction under this subdivision.
30 5. The amount of any refund or credit for overpayment of income taxes imposed by the
31 Commonwealth or any other taxing jurisdiction.
32 6. The amount of wages or salaries eligible for the federal Work Opportunity Credit which was not
33 deducted for federal purposes on account of the provisions of §280C(a) of the Internal Revenue Code.
34 7. Any amount included therein less than $600 from a prize awarded by the Virginia Lottery.
35 8. The wages or salaries received by any person for active and inactive service in the National Guard
36 of the Commonwealth of Virginia, not to exceed the amount of income derived from 39 calendar days
37 of such service or $3,000, whichever amount is less; however, only those persons in the ranks of O3
38 and below shall be entitled to the deductions specified in this subdivision.
39 9. Amounts received by an individual, not to exceed $1,000 for taxable years beginning on or before
40 December 31, 2019, and $5,000 for taxable years beginning on or after January 1, 2020, as a reward for
41 information provided to a law-enforcement official or agency, or to a nonprofit corporation created
42 exclusively to assist such law-enforcement official or agency, in the apprehension and conviction of
43 perpetrators of crimes. This subdivision shall not apply to the following: an individual who is an
44 employee of, or under contract with, a law-enforcement agency, a victim or the perpetrator of the crime
45 for which the reward was paid, or any person who is compensated for the investigation of crimes or
46 accidents.
47 10. The amount of "qualified research expenses" or "basic research expenses" eligible for deduction
48 for federal purposes, but which were not deducted, on account of the provisions of § 280C(c) of the
49 Internal Revenue Code and which shall be available to partners, shareholders of S corporations, and
50 members of limited liability companies to the extent and in the same manner as other deductions may
51 pass through to such partners, shareholders, and members.
52 11. Any income received during the taxable year derived from a qualified pension, profit-sharing, or
53 stock bonus plan as described by § 401 of the Internal Revenue Code, an individual retirement account
54 or annuity established under § 408 of the Internal Revenue Code, a deferred compensation plan as
55 defined by § 457 of the Internal Revenue Code, or any federal government retirement program, the
56 contributions to which were deductible from the taxpayer's federal adjusted gross income, but only to the
57 extent the contributions to such plan or program were subject to taxation under the income tax in
58 another state.
INTRODUCED
HB1522
1/16/23
6:38

HB1522 2of8
59 12. Any income attributable to a distribution of benefits or a refund from a prepaid tuition contract
60 or savings trust account with the Virginia College Savings Plan, created pursuant to Chapter 7
61 (§ 23