Eligible Virginia families could claim a capped child tax credit

The proposal would allow eligible taxpayers to claim a refundable state tax credit for each qualifying child. An individual or married couple filing jointly would qualify if household income was at or below 300% of the federal poverty level in the prior tax year. A qualifying child has the meaning given in federal tax law. The credit amount would match the federal child credit for that child and tax year. Only one credit could be claimed per child. The state credit would be reduced by any credit claimed for that child under § 58.1-339.8. The Department would allocate credits in the order it receives claims, up to a total of $5 million per tax year. No credit would be allowed to the extent the matching federal credit was denied, reduced, or taken back because of fraud, ineligibility, or failure to follow federal rules. The credit would apply to tax years beginning on or after January 1, 2027, and before January 1, 2032. Any refund would be paid within 90 days after the return is filed.