HB 372: Income tax, state; removes sunset from and makes permanent increase in refundable earned tax credit.
HB 372 status: Introduced — Continued from last session (updated Jul 21, 2026).
What this bill does
Overall score
Bill summary
OfficialEarned income tax credit. Removes the sunset from and makes permanent the increase in Virginia's refundable earned income tax credit from 15 percent to 20 percent of the allowable federal earned income tax credit. Under current law, the Virginia refundable earned income tax credit expires in taxable year 2027, and Virg...
Key analysis
Impact analysis
Environment
Benefits
- no direct environmental impact
Risks
- no direct environmental impact
Economy
Benefits
- increases disposable income for low-wage earners
- supports local consumption and economic stability
Risks
- reduces state tax revenue compared to sunset scenario
Society
Benefits
- reduces poverty for working families
- encourages workforce participation
Risks
- fiscal pressure on state budget priorities
How trustworthy & consequential it is
Source
OpenStates
Confidence
lowlow
Analysis status
OpenStates summary
reduction in long-term state tax revenue may require budget adjustments
analysis based on summary abstract only
Where it stands
Introduced
CurrentContinued from last session
Committee
UpcomingFloor
UpcomingGovernor
UpcomingEnacted
UpcomingHow it affects your district
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