Bill Text: VA HB1180 | 2024 | Regular Session | Prefiled
Bill Title: Home instruction and private education; creates a tax credit for taxable years 2024 through 2028.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced) 2024-02-13 - Left in Finance [HB1180 Detail]
Download: Virginia-2024-HB1180-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.15 as follows:
§58.1-339.15. Home instruction and private school education tax credit.
A. As used in this section:
"Eligible education expenses" means (i) instruction-related materials, including textbooks, workbooks, and supplies; (ii) courses, tutors, or programs used in or to supplement home instruction; (iii) tuition; or (iv) fees for nationally standardized norm-referenced achievement tests, Advanced Placement examinations, examinations taken to gain admission to a private education institution or program or institution of higher learning, the Preliminary SAT/National Merit Scholarship Qualifying Test, and Pre-ACT examinations.
"Parent" means any parent, guardian, legal custodian, or other person having control, custody, or charge of a child.
"Poverty guidelines" means the poverty guidelines for the 48 contiguous states and the District of Columbia updated annually in the Federal Register by the U.S. Department of Health and Human Services under the authority of §673(2) of the Omnibus Budget Reconciliation Act of 1981 (P.L. 103-66).
"Qualified student" means a child (i) who has not graduated from high school and (ii) whose parent has elected to provide home instruction pursuant to §22.1-254.1 or who has enrolled in a private education institution or program coinciding with educational levels pre-kindergarten through twelfth grade.
"Tuition" means the sum of money charged for teaching or instruction by an private elementary or secondary school in the Commonwealth.
B. 1. For taxable years beginning on or after January 1, 2024, but before January 1, 2029, an individual filing a return or married persons filing a joint return (i) whose child is a qualified student and (ii) whose Virginia adjusted gross income exceeds 200 percent of the poverty guidelines shall be allowed a nonrefundable credit against any tax levied pursuant to § 58.1-320 for the cost incurred for eligible education expenses. The amount of the credit that may be claimed by such an individual or married persons shall not exceed half of the average state Standards of Quality funding per student per year.
2. An individual filing a return or married persons filing a joint return (i) whose child is a qualified student and (ii) whose Virginia adjusted gross income does not exceed 200 percent of the poverty guidelines shall be allowed a refundable credit against any tax levied pursuant to §58.1-320 for such cost enumerated in subdivision 1. The amount of the credit that may be claimed by such an individual or married persons shall not exceed 80 percent of the average state Standards of Quality funding per student per year.
3. In order to claim the tax credit, the parent, when claiming the credit, shall provide with such parent's income tax return:
a. In the case of a student receiving home instruction, the name of such student and the school division to which the notice of intent to provide home instruction was provided pursuant to § 22.1-254.1;
b. In the case of a student enrolled in a private education institution or program, the name of the student, the private education institution or program in which the student is enrolled, and an enrollment certification for the student from the private education institution or program; or
c. A list of qualifying expenses, date of expenditure, and expense amount.
4. The amount of the credit in any single taxable year shall not exceed the taxpayer's liability for taxes imposed by this chapter for that taxable year. If the amount of the credit that may be claimed under subdivision 2 exceeds the taxpayer's tax liability for the taxable year in which the costs were incurred, the amount that exceeds the tax liability may be carried over for credit against the income taxes of the taxpayer in the next three taxable years or until the total amount of the tax credit has been taken, whichever is sooner.
C. The parent or parents of a student who has been awarded a scholarship from a scholarship foundation as part of the Education Improvement Scholarships Tax Credit program (§58.1-439.25 et seq.) shall not be eligible for a tax credit permitted by this section. Any taxpayer claiming a tax credit under this section shall not claim a credit under any similar Virginia law for costs related to the same eligible education expenses.
D. The Tax Commissioner shall develop guidelines for claiming the credit permitted by this section. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§2.2-4000 et seq.). In the case of a student receiving home instruction, the notice of intent to provide home instruction provided pursuant to §22.1-254.1 shall be considered an appropriate basis for claiming the credit permitted by this section.
E. Nothing in this section shall be construed to permit any department or agency of the Commonwealth to exercise control or supervision over any private education institution or program, any program of home instruction, or any other education service provider.
