# Virginia SB971: Income tax, state; creates second-chance employment tax credit.

Virginia SB971, Income tax, state; creates second-chance employment tax credit., is a 2025 Regular Session Senate bill sponsored by Aaron R. Rouse (Democratic); status failed, last action 2025-02-05 (Left in Finance and Appropriations) (as of 2026-10-17).

- Canonical: https://policyrisk.com/state-bill/VA-SB971-2025
- As of: 2026-10-17
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia SB971
- State: Virginia
- Session: 2025 Regular Session
- Title: Income tax, state; creates second-chance employment tax credit.
- Status: failed
- Chamber: Senate
- Introduced: 2025-01-06
- Last action: 2025-02-05, Left in Finance and Appropriations
- Sponsor: Aaron R. Rouse (Democratic)
- Cosponsors: 0
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Income tax; second-chance employment tax credit. Creates a nonrefundable second-chance employment tax credit for taxable years 2025 through 2029 for five percent of the amount of wages paid to a qualified employee during the taxable year. The bill defines a qualified employee as an individual who was convicted of a felony or a Class 1 or Class 2 misdemeanor. The annual amount of the credit that may be claimed by the employer shall not exceed $1,250 per qualified employee or $2,250 in the case of a qualified employee who is on probation or parole. The credit may be claimed in the first year in which the qualified employer employs a qualified employee and in each subsequent year in which such employer continues to employ such qualified employee. The bill requires that such qualified employer adopt and implement a second-chance hiring policy that meets or exceeds standards set in guidance by the Department of Human Resource Management. The aggregate amount of tax credits available in any fiscal year shall not exceed the amount appropriated for such year as provided in the general appropriation act.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Aaron R. Rouse (Democratic), Senate

## Actions (4)

- 2025-02-05: Left in Finance and Appropriations (Senate)
- 2025-01-15: Impact statement from TAX (SB971) (Senate)
- 2025-01-06: Referred to Committee on Finance and Appropriations (Senate)
- 2025-01-06: Prefiled and ordered printed; Offered 01-08-2025 25104358D (Senate)

## Bill text

- Introduced, 2025-01-06: [HTML](https://lis.blob.core.windows.net/files/1014656.HTML), [PDF](https://lis.blob.core.windows.net/files/1014654.PDF)

## 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.blob.core.windows.net/files/1014656.HTML)
- [Introduced (PDF)](https://lis.blob.core.windows.net/files/1014654.PDF)

## 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)
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- [Virginia state hub](https://policyrisk.com/states/virginia)
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Source: PRIA, https://policyrisk.com/state-bill/VA-SB971-2025 (as of 2026-10-17).