Should VA income tax rebate (HB 1600) apply to TY 2024 or TY 2025?

[PavelMakarchuk]

Observation

In our TY 2024 comparison, we see 28 non-S-Corp VA state tax mismatches where PE computes lower state tax than TAXSIM by ~$200/$400. This appears to correspond to the Virginia income tax rebate.

What we found

After pulling the latest feenberg/taxsim source, the updated 47va.for applies the HB 1600 rebate via:

elseif(law.ge.2024.and.law.le.2025) then
   rebate=rebatef(200d0*d(7),law,2024,2025)

With the default extnd(27)=0, rebatef applies the rebate in the paid year (2025), so it does not reduce TY 2024 liability.

PE applies the rebate to TY 2024 (the eligibility year), resulting in $200/single and $400/joint lower tax than TAXSIM.

The question

HB 1600 (2025 Appropriation Act, Item 3-5.28) defines the rebate as:

a one-time individual income tax rebate for taxable year 2024

The rebate amount is based on TY 2024 filing status and capped at TY 2024 tax liability ($200/single, $400/joint). Since the rebate is determined by and capped at TY 2024 liability, we've been modeling it as reducing TY 2024's effective tax burden. TAXSIM treats it as a TY 2025 event since that's when the payment is issued.

Same pattern as #716 (GA surplus rebate): is there a standard convention for which year these one-time rebates should be assigned to?

References

• HB 1600 (2025 Appropriation Act): chaptered text
• Virginia Tax rebate page: tax.virginia.gov/rebate
• Prior VA rebate (2021–2022, $250/filer): same mechanism via rebatef with ielig=2021, ipaid=2022