SB 745

            
2020 SESSION

20100557D

SENATE BILL NO. 745 

Senate Amendments in [ ] � January 23, 2020

A BILL to amend and reenact � 58.1-321 of the Code of
Virginia, relating to income tax exclusion; student loan forgiveness; disabled
veterans.

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Patron Prior to Engrossment--Senator Bell 

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Referred to Committee on Finance and Appropriations 

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Be it enacted by the General Assembly of Virginia:

1. That � 58.1-321 of the Code of Virginia is amended and
reenacted as follows:

� 58.1-321. Exemptions and exclusions.

A. No tax levied pursuant to � 58.1-320 is imposed, nor any
return required to be filed, by:

1. A single individual where the Virginia adjusted gross
income plus the modification specified in subdivision 5 of � 58.1-322.03 for
such taxable year is less than $11,650 for taxable years beginning on and after
January 1, 2010, but before January 1, 2012.

A single individual where the Virginia adjusted gross income
plus the modification specified in subdivision 5 of � 58.1-322.03 for such
taxable year is less than $11,950 for taxable years beginning on and after
January 1, 2012.

2. An individual and spouse if their combined Virginia
adjusted gross income plus the modification specified in subdivision 5 of �
58.1-322.03 is less than $23,300 for taxable years beginning on and after
January 1, 2010 (or one-half of such amount in the case of a married individual
filing a separate return) but before January 1, 2012, and less than $23,900 for
taxable years beginning on and after January 1, 2012 (or one-half of such
amount in the case of a married individual filing a separate return).

For the purposes of this section, "Virginia adjusted
gross income" means federal adjusted gross income for the taxable years
with the modifications specified in �� 58.1-322.01 and 58.1-322.02.

B. Persons in the Armed Forces of the United States stationed
on military or naval reservations within Virginia who are not domiciled in
Virginia shall not be held liable to income taxation for compensation received
from military or naval service.

C. [ Any ] [ For taxable years
beginning on and after January 1, 2020, but before January 1, 2026, any ] amount
that is includible in the federal adjusted gross income of an eligible veteran
by reason of the whole or partial discharge of any loan described in �
108(f)(5)(B) of the Internal Revenue Code shall be excluded from Virginia
adjusted gross income. This exclusion shall apply only to those discharges that
(i) are described in clauses (i), (ii), and (iii) of � 108(f)(5)(A) of the
Internal Revenue Code and (ii) occur after December 31, 2017. For the purposes
of this subsection, "eligible veteran" means a veteran who has been
rated by the U.S. Department of Veterans Affairs, or its successor agency
pursuant to federal law, to have a 100 percent service-connected, permanent,
and total disability.