Currently those who choose to donate to political candidates can receive a $50 tax credit towards their Virginia income taxes.
This tax preference is estimated to cost Virginia taxpayers around $700,000 per year.
“Virginia’s tax credits are out of control, and we need to find ways to rein in unnecessary and costly tax preferences,” Sen. Petersen said in his office following the committee meeting. “The political contribution tax credit effects us all – it takes money from Virginia taxpayers and distributes it to those who decide to support political candidates. I’m not against someone donating to a charity or buying a television but I don’t think we all should have to pay for it.”
Petersen then vowed to introduce the bill again next year as part of his annual effort to repeal tax preferences and reform the tax system in Virginia.
The measure previously passed the Senate 34-3.
See the bill, SB 1399 here.