SB1443: Income tax, state; establishes car tax credit.

Legislative Summary

Income tax; car tax credit. Establishes a refundable income tax credit for taxable years 2025 through 2027 for a taxpayer whose federal adjusted gross income does not exceed $50,000 if filing as an individual or $100,000 if married and filing jointly in an amount equal to the lesser of (i) the amount actually paid for tangible personal property tax to Virginia localities on qualifying vehicles, defined in the bill, or (ii) $150 for an individual or $300 for married individuals filing jointly. The bill provides that such credit shall not be allowed for such taxes paid to any locality that has, during the tax year for which such credit is claimed, imposed a tangible personal property tax rate upon qualifying vehicles at a rate that exceeds the rate imposed upon such vehicles by such locality during the 2024 tax year. Finally, the bill provides that if any provision of the bill is held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, such provision shall not be deemed severable.