Labor & Employment

Income tax credits; child care-related expenses. Establishes in taxable years 2026 through 2030 (i) a refundable tax credit in an amount equal to 20 percent of the credit claimed by a qualified taxpayer, as defined in the bill, pursuant to the federal Employer-Provided Childcare Credit, and (ii) a refundable tax credit equal to 50 percent of an employer's qualified child care expenditures, as defined in the bill. The bill directs that the aggregate amount of credit for an employer's qualified child care expenditures shall not exceed $500,000 per taxable year and such amount shall be adjusted annually for inflation.

Department of Medical Assistance Services; earned income disregard; cost-of-living adjustment. Directs the Department of Medical Assistance Services to seek the necessary federal approvals to increase, as necessary based upon Social Security Administration cost-of-living adjustments, the earned income disregard for workers with disabilities.

Regional Care Compacts Pilot Program established; workforce development; certified nurse aides; licensed practical nurses; report. Directs the Department of Health to establish the Regional Care Compacts Pilot Program to permit health care entities to enter into compacts, as defined by the bill, to incentivize health care workforce development. The bill permits such compacts to engage in workforce development activities, pool resources, enter into agreements with other entities to expand training and placement capacity, establish shared goals, and share workforce data in accordance with applicable privacy laws. The bill directs the Department to provide technical assistance and permits the Department to administer the Program in coordination with the Department of Health Professions, the Virginia Health Workforce Development Authority, and other relevant entities. The bill requires compacts to report to the Department on their activities and requires the Department to submit a consolidated report to the Governor and General Assembly each year by December 1.

Economic development incentives; wage requirements. Requires companies to pay an average wage for the jobs eligible for assistance under the component programs of the Virginia Jobs Investment Program that is no less than the prevailing average wage, defined in the bill, or, in the case of an economically distressed locality, defined in the bill, no less than 85 percent of the prevailing average wage. Under current law, to be eligible for the component programs, companies must pay a minimum entry-level wage rate per hour of at least 1.2 times the federal minimum wage or the Virginia minimum wage, whichever is higher, and in areas that have an unemployment rate of 1.5 times the statewide average unemployment rate, the wage rate minimum may be waived. The bill also authorizes the payment of Virginia Investment Performance Grants if the average wage paid by the eligible manufacturer or research and development service, excluding fringe benefits, is no less than 85 percent of the prevailing average wage in localities with either (i) an annual unemployment rate for the most recent calendar year for which such data is available that is greater than the final statewide average unemployment rate for that calendar year or (ii) a poverty rate for the most recent calendar year for which such data is available that exceeds the statewide average poverty rate for that year. Under current law, such authorization is limited to those localities meeting both the unemployment rate and poverty rate thresholds.