Housing

Income tax; credit for affordable housing projects. Provides, for taxable years 2026 through 2030, a nonrefundable income tax credit for qualifying taxpayers, defined in the bill as taxpayers that, during the taxable year, own a direct or indirect interest through one or more pass-through entities, in an affordable housing project, also defined in the bill. The credit amount shall be equal to the product of (i) the portion of such taxpayer's ownership in such affordable housing project and (ii) the sum of 50 percent of the difference between the fair market value of each unit rented to a qualifying tenant and the rent actually charged to such tenant for the unit, computed for that portion of the taxable year in which the unit was rented to such tenant. The bill defines a qualifying tenant as a tenant with a Virginia adjusted gross income less than 120 percent of the area median income, adjusted for family size. The aggregate amount of credits allowable under the provisions of the bill shall not exceed $5 million per taxable year.

Individual income tax; first-time homebuyer tax credit. Creates a one-time, nonrefundable individual income tax credit in taxable years 2026 through 2030 for the purchase of a principal residence by a first-time homebuyer, as such terms are defined in the bill, in an amount equal to $5,000. The bill requires that any credits be repaid if the principal residence is sold or no longer serves as the first-time homebuyer's principal residence within three years from the purchase date of such property.