House Finance presenter says committee will schedule omnibus bill to extend most expiring tax preferences ahead of 2026 sunset

A presenter for the House Finance Committee said the panel will schedule an omnibus bill to extend most of the tax preferences that are set to expire in 2025, while the standard deduction will be considered separately.

The presenter said, “there's been an extraordinary 19 tax preferences are sunsetting before July 2026…we will hear an omnibus bill extending all but 1 of them and that 1 would be the standard deduction which will be heard separately for 1 year,” and added the separate handling would allow a joint Senate-House subcommittee to review and make recommendations on the sunsetted preferences.

Why it matters: many features of Virginia’s personal income tax track the federal tax code (the state is a conformity state), so expiration or change of federal provisions — particularly several provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that lapse at the end of calendar year 2025 — could automatically alter Virginia law unless the General Assembly acts. The presenter told members the Congressional Budget Office projects extending the expiring individual TCJA provisions would increase the federal deficit by about $4.5 trillion over the next decade, a…