Finance subcommittee advances range of tax bills, most notably expansion of Virginia housing tax credit

The House Finance Subcommittee on Tuesday advanced a slate of tax measures affecting housing, aviation maintenance, business pass-throughs and state tax administration.

The most consequential measure, House Bill 17‑01, would extend the Housing Opportunity Tax Credit through Jan. 1, 2031, raise the program's annual cap from $60 million to $250 million and adjust a rural set‑aside definition. The subcommittee voted 6‑0 to report the bill and refer it to Appropriations.

The bill's patron, identified in the hearing as Delegate Bulova, told the committee the state program has been oversubscribed and, if expanded as proposed, could support an estimated 12,500 additional affordable housing units. Demis Boudreau of Virginia Housing, which administers the program, told the committee both federal and state credits carry a 30‑year compliance period that survives property transfers. "Even if that property is transferred, that compliance remains," Boudreau said.

The panel also amended and advanced House Bill 17‑29, which would make permanent a sales and use tax exemption for parts, engines and supplies used to maintain or repair aircraft at Virginia FAA‑certified maintenance facilities. Business representatives said the exemption keeps Virginia competitive with neighboring states and attracts maintenance work. After debate about the measure's previous 2,400‑pound gross takeoff weight screening, the committee adopted a substitute to retain the current weight‑limit language and add a three‑year extension to provide certainty; the bill as amended passed 8‑0.

Delegate Delaney, who carried the aircraft bill, said…