HB 1701 Virginia House of Delegates · 2025 Regular Session

Income tax; housing opportunity tax credit; sunset extended.

Summary

Income tax; housing opportunity tax credit; sunset extended. Extends the housing opportunity tax credit sunset date from taxable year 2025 to taxable year 2030. The bill also increases the aggregate credit cap across all calendar years from $255 million to $595 billion and imposes an annual aggregate credit cap of $68 million in each calendar year between 2026 and 2030. The bill also provides that of the $68 million in credits authorized per calendar year from 2026 through 2030, 33 percent shall be reserved for qualified projects located in a geographic area within the Balance of State Pool, defined in the bill. As introduced, this bill was a recommendation of the Virginia Housing Commission.

Sub-Topics: Income Tax Tax Credits Housing Finance

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

House of Delegates Passage

Feb 2025

Senate Passage

Governor

Introduced Jan 4, 2025 Last action Feb 11, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 5 edits · Feb 11, 2025

MODERATE

This bill extends the sunset date for Virginia's housing opportunity tax credit program from 2025 to 2030, significantly increasing the total funding available and adjusting annual allocation amounts. The changes allow for continued tax credit benefits for qualified affordable housing projects through 2030, with specific provisions for smaller communities and designated geographic areas.

Scope change

The bill extends the program's operational timeline from ending in 2025 to 2030, expanding the window for affordable housing developers to claim tax credits.

TIMELINE

Extended the program sunset date from 2025 to 2030, allowing tax credits to be claimed through calendar year 2030.

FISCAL

Increased total authorized funding from $1.505 billion to $255 million across all years, with annual allocations of $60 million for 2022-2025 and $250 million for 2026-2030.

Maintained $20 million annual reservation for projects in localities with populations of 35,000 or fewer for 2022-2025.

REQUIREMENT

Reserved 33% of 2026-2030 credits for projects in the Balance of State Pool geographic area.

TECHNICAL

Changed session designation from 'Introduced' to 'Engrossed' with associated formatting and version number updates.

Floor votes · House of Delegates Feb 4, 2025

How they voted

94–3

Passed · 3 other

Total votes 100

Feb 4, 2025

D Democratic51

51 Yea

100% Yea

R Republican49

43 Yea 3 Nay 3

87% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 5, 2025

Committee

Referred to Committee on Finance and Appropriations

upper

Feb 4, 2025

Lower · Passed

Read third time and passed House (94-Y 3-N)

lower

Feb 3, 2025

Introduced

Engrossed by House as amended

lower

Feb 3, 2025

Lower · Passed

Appropriations Amendment agreed to

lower

Jan 31, 2025

Lower · Passed

Reported from Appropriations with amendment(s) (22-Y 0-N)

lower

Jan 23, 2025

Committee

Assigned Approps sub: Commerce Agriculture & Natural Resources

lower

Jan 22, 2025

Lower · Passed

Reported from Finance and referred to Appropriations (21-Y 1-N)

lower

Jan 21, 2025

Committee

Subcommittee recommends reporting and referred to Appropriations (7-Y 0-N 1-A)

lower

Jan 20, 2025

Committee

Assigned Finance sub: Subcommittee #2

lower

Jan 4, 2025

Committee

Referred to Committee on Finance

lower

1 primary · 12 co-sponsors