# Virginia SB632: Income tax, state; decreases certain taxes, increases amount of tax credit.

Virginia SB632, Income tax, state; decreases certain taxes, increases amount of tax credit., is a 2025 Regular Session Senate bill sponsored by Richard H. Stuart (Republican); status failed, last action 2024-11-19 (Left in Finance and Appropriations) (as of 2026-10-16).

- Canonical: https://policyrisk.com/state-bill/VA-SB632-2025
- As of: 2026-10-16
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia SB632
- State: Virginia
- Session: 2025 Regular Session
- Title: Income tax, state; decreases certain taxes, increases amount of tax credit.
- Status: failed
- Chamber: Senate
- Introduced: 2024-01-10
- Last action: 2024-11-19, Left in Finance and Appropriations
- Sponsor: Richard H. Stuart (Republican)
- Cosponsors: 0
- Touches household money: no
- Roll calls: 1 (14 yes, 1 no in all)
- Economic provisions PRIA read: 0

## Summary

Taxation. Decreases, beginning in taxable year 2025, the income tax imposed (i) on income less than $3,000, from two percent to 1.75 percent; (ii) on income in excess of $3,000 but less than $5,000, from three percent to 2.65 percent; (iii) on income in excess of $5,000 but less than $17,000, from five percent to 4.4 percent; and (iv) on income in excess of $17,000, from 5.75 percent to 5.1 percent. The bill increases from 20 to 25 percent, beginning in taxable year 2025, the amount of credit eligible taxpayers may claim pursuant to the income tax credit for low-income taxpayers. The bill also increases the annual aggregate amount of Education Improvement Scholarships tax credits that are available from $25 million to $30 million beginning fiscal year 2025 and each fiscal year thereafter. The bill defines "digital personal property," "streaming," and "taxable service" for the purposes of the retail sales and use tax. The bill increases the sales and use tax from 4.3 percent to 5.2 percent. Amendments are made throughout the bill to impose the sales and use tax on taxable services in addition to tangible personal property. The bill requires that one half of the additional sales and use tax revenues generated by taxable services and digital personal property that is deposited in the Commonwealth Transportation Fund be distributed to the Transportation Partnership Opportunity Fund, and the additional one half of such revenues be distributed to the Interstate 81 Corridor Improvement Fund until June 30, 2031, or until $400 million has been deposited in the Interstate 81 Corridor Improvement Fund. Certain provisions of the bill have a delayed effective date of January 1, 2025.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Richard H. Stuart (Republican), Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2024-02-06 | Senate | Continued to 2025 in Finance and Appropriations | pass | 14 | 1 |   |

## Actions (5)

- 2024-11-19: Left in Finance and Appropriations (Senate)
- 2024-02-06: Continued to 2025 in Finance and Appropriations (14-Y 1-N) (Senate)
- 2024-01-31: Impact statement from TAX (SB632) (Senate)
- 2024-01-10: Referred to Committee on Finance and Appropriations (Senate)
- 2024-01-10: Prefiled and ordered printed; offered 01/10/24 24103290D (Senate)

## Bill text

- Introduced, 2024-01-11: [HTML](https://lis.virginia.gov/bill-details/20251/SB632)

## Related bills

- HR671: Commending JR's Auto Care. (adopted)
- SB941: Robbery; use of air or gas operated weapon, etc., penalty. (failed)
- HB1746: Public safety officer; definition. (failed)
- HB1600: Budget Bill. (failed)
- SB1449: Data centers; site assessment for high energy use facility. (failed)
- HB1609: Essential health benefits benchmark plan; Commission to consider coverage for infertility treatment. (to governor)

## Sources
- [Introduced (HTML)](https://lis.virginia.gov/bill-details/20251/SB632)

## Related
- [HR671: Commending JR's Auto Care.](https://policyrisk.com/state-bill/VA-HR671-2025)
- [SB941: Robbery; use of air or gas operated weapon, etc., penalty.](https://policyrisk.com/state-bill/VA-SB941-2025)
- [HB1746: Public safety officer; definition.](https://policyrisk.com/state-bill/VA-HB1746-2025)
- [HB1600: Budget Bill.](https://policyrisk.com/state-bill/VA-HB1600-2025)
- [SB1449: Data centers; site assessment for high energy use facility.](https://policyrisk.com/state-bill/VA-SB1449-2025)
- [HB1609: Essential health benefits benchmark plan; Commission to consider coverage for i…](https://policyrisk.com/state-bill/VA-HB1609-2025)
- [Virginia bills](https://policyrisk.com/states/virginia/bills)
- [Virginia state hub](https://policyrisk.com/states/virginia)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/VA-SB632-2025 (as of 2026-10-16).