Virginia 2027 Regular Session Status: In Committee

HB 504 — Income tax, state; tax credit for certain small businesses.

Last action — Continued from last session

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House of Delegates
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House of Delegates. Introduced January 12, 2026. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House of Delegates.

Prognosis

Stalled 14% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

The bill provides a tax credit for eligible small businesses from 2026 to 2030.

This legislation establishes a one-time, nonrefundable tax credit of $2,500 for qualifying small businesses for taxable years 2026 through 2030, with a limit of $5 million in credits claimed annually. It targets support for small businesses by providing financial relief through tax reductions.

What this means for you
  • Small Business: If you are a small business owner, you may qualify for a one-time tax credit of $2,500.

Summary

Income tax; tax credit for certain small businesses. Establishes a one-time, nonrefundable tax credit for taxable years 2026 through 2030 for eligible small businesses, as defined in the bill, equal to $2,500. The bill limits the total aggregate amount of small business credits claimed to $5 million per taxable year.

Bill Text

How this bill changes current law

40 changes Share ↗

Compared against the Code of Virginia as published AI-generated reading aid — verify against the official bill.

This bill amends 1 section(s) of the Code of Virginia: 58.1-339.15.

  • 58.1-339.15

    A. For the purposes of this section

    Inserts “A. For the purposes of this section”.

  • 58.1-339.15

    ,

    Inserts “,”.

  • 58.1-339.15

    "

    Inserts “"”.

  • 58.1-339.15

    e

    Inserts “e”.

  • 58.1-339.15

    ligible small business" means

    Inserts “ligible small business" means”.

  • 58.1-339.15

    a business

    Inserts “a business”.

  • 58.1-339.15

    in the retail trade (NAICS

    Inserts “in the retail trade (NAICS”.

  • 58.1-339.15

    44

    Inserts “44”.

  • 58.1-339.15

    and

    Inserts “and”.

  • 58.1-339.15

    45

    Inserts “45”.

  • 58.1-339.15

    ) or the accommodation

    Inserts “) or the accommodation”.

  • 58.1-339.15

    and food services

    Inserts “and food services”.

  • 58.1-339.15

    (NAICS

    Inserts “(NAICS”.

  • 58.1-339.15

    72

    Inserts “72”.

  • 58.1-339.15

    )

    Inserts “)”.

  • 58.1-339.15

    industries

    Inserts “industries”.

  • 58.1-339.15

    that meets the size standards set by the

    Inserts “that meets the size standards set by the”.

  • 58.1-339.15

    U.S.

    Inserts “U.S.”.

  • 58.1-339.15

    Sm

    Inserts “Sm”.

  • 58.1-339.15

    all Business Administration

    Inserts “all Business Administration”.

  • 58.1-339.15

    for

    Inserts “for”.

  • 58.1-339.15

    such

    Inserts “such”.

  • 58.1-339.15

    industry

    Inserts “industry”.

  • 58.1-339.15

    and, during the taxable year for which a credit is claimed pursuant to this section,

    Inserts “and, during the taxable year for which a credit is claimed pursuant to this section,”.

  • 58.1-339.15

    (i

    Inserts “(i”.

  • 58.1-339.15

    )

    Inserts “)”.

  • 58.1-339.15

    commenced operations and (ii)

    Inserts “commenced operations and (ii)”.

  • 58.1-339.15

    leased or purchased a

    Inserts “leased or purchased a”.

  • 58.1-339.15

    place of business

    Inserts “place of business”.

  • 58.1-339.15

    in a designated Virginia Main Street Community, as defined by the Department of Housing and Community Development

    Inserts “in a designated Virginia Main Street Community, as defined by the Department of Housing and Community Development”.

  • 58.1-339.15

    .

    Inserts “.”.

  • 58.1-339.15

    B. For taxable years beginning on and after January 1, 2026, but before January 1, 2031, a

    Inserts “B. For taxable years beginning on and after January 1, 2026, but before January 1, 2031, a”.

  • 58.1-339.15

    n eligible

    Inserts “n eligible”.

  • 58.1-339.15

    small business

    Inserts “small business”.

  • 58.1-339.15

    shall be allowed a nonrefundable credit against the tax levied pursuant to § 58.1-320

    Inserts “shall be allowed a nonrefundable credit against the tax levied pursuant to § 58.1-320”.

  • 58.1-339.15

    or 58.1-400

    Inserts “or 58.1-400”.

  • 58.1-339.15

    in an amount

    Inserts “in an amount”.

  • 58.1-339.15

    equal to $2,

    Inserts “equal to $2,”.

  • 58.1-339.15

    5

    Inserts “5”.

  • 58.1-339.15

    00

    Inserts “00”.

Action History

  1. Continued from last session

  2. Continued to next session in Finance (Voice Vote)

  3. Subcommittee recommends continuing to (Voice Vote)

  4. Fiscal Impact statement From TAX (2/8/2026 1:29 pm)

  5. Assigned HFIN sub: Subcommittee #1

  6. Referred to Committee on Finance

  7. Prefiled and ordered printed; Offered 01-14-2026 26103087D

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 147 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (147)

147 members have not signed on to this bill.

Show all 147 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HB 504 do?
Income tax; tax credit for certain small businesses. Establishes a one-time, nonrefundable tax credit for taxable years 2026 through 2030 for eligible small businesses, as defined in the bill, equal to $2,500. The bill limits the total aggregate amount of small business credits claimed to $5 million per taxable year.
Who sponsors HB 504?
HB 504 is sponsored by John Chilton McAuliff.
What is the current status of HB 504?
This bill is in committee in the House of Delegates. Introduced January 12, 2026. It must pass committee before a floor vote.
Where can I track HB 504?
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Last checked for changes 3 months ago · updated continuously

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