Finance Subcommittee #1

Monday, February 2, 2026·35m·▶ Watch / Listen

Finance Subcommittee #1 tabled six of seven bills heard — including tax credits for nursing workforce, broadband grants, military benefits, volunteer fire and rescue, capital gains on home sales, and first-time homebuyers — citing tight fiscal conditions and limited resources, while reporting out only one bill, HB 958 on corporate net operating losses, unanimously.

Key Actions

·HB 958 – Corporate Income Tax; Net Operating LossNo Vote

+ 2 more actions

Controversies

HB 588 – Whether to report or table the military benefits income subtraction

Delegate McNamara moved to report HB 588 and refer it to Appropriations, stating 'I think there are some differences. I think it's a good bill. I care about our veterans. I know we all do.' An unnamed delegate made a substitute motion to table, arguing the committee 'cannot carry similar legislation that invokes the same section of code.' Chair Watts sided with tabling, stating the bill already reported to Appropriations (HB 137) differs by over $60 million because it is 'targeted to where the need is greatest, as opposed to all retirement benefits, no matter what the individual's current age or employment or degree of need.'

+ 2 more controversies

Notable Quotes

“Treating the grant itself as taxable income effectively results in multiple layers of taxation on the same public investment. This is just a targeted technical fix that aligns Virginia's tax policy with our broadband deployment goals, does not create a new grant program, and it does not increase spending, ensures that every dollar of government broadband grants are used to build the networks, not clawed back due to tax code.”
Delegate Krezik — Delegate Krezik, patron of HB 458, argued that current Virginia law taxes broadband grants as income — a practice that changed after the 2017 Tax Cuts and Jobs Act — forcing providers to slow construction because they lose grant funding to taxes in year one.

+ 4 more quotes

Votes

Motion to lay HB 1123 on the tableNo Vote

Motion to gently lay HB 458 on the tableNo Vote

Substitute motion to gently lay HB 588 on the tablePassed

Motion to gently lay HB 991 on the tablePassed

Motion to report HB 958Passed

Motion to gently lay HB 1210 on the tablePassed

Motion to gently lay first-time homebuyer tax credit bill on the tableNo Vote

Motion to adjournPassed

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TranscriptPreview

Authority. About 40% of our nursing students who are educated here leave the state for another job. And about 28 of our rural hospitals only have eight maternity wards. As the delegate said, birthing mothers and rural parts of the state travel about 30 minutes to an hour to give birth. And so the tax credit would be tremendously helpful. Thank you, sir. Mr. Chairman, members of the committee. Jonathan Williams, on behalf of the Virginia Academy of Physician Assistance. And we support the bill and thank the delegate for putting it in. Good morning, Mr. Chairman, and members of the committee. Keenan Caldwell, speaking on behalf of Sentara Health. Sentara is the largest health system in the commonwealth and the third largest private employer. And we appreciate any help to continue to fill the pipeline in these very needed areas. Thank you. Is there anyone in the audience to testify in opposition to the bill? Do we have anyone online? Okay. Any further questions from the committee? Okay, patron, I'll give you the last word. Yes, McNamara. Thank you. May I make comment to the patron, please? I. Welcome to the General Assembly. I think you've come up with…

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