Model Virginia HB979 Income Tax Reform

[DTrim99]

Summary

Model Virginia HB979 income tax reform which adds:

• Two new high-income tax brackets (8% on $600k-$1M, 10% on $1M+)
• Updated standard deduction amounts ($10k single, $15k HoH, $20k joint)

Effective date: January 1, 2027

Closes #7214

Changes

Parameters (gov/contrib/states/va/hb979/)

• in_effect.yaml - Boolean to enable/disable reform
• brackets.yaml - New income tax brackets with 8% and 10% rates
• standard_deduction.yaml - New standard deduction amounts by filing status

Reform (reforms/states/va/hb979/)

• va_hb979_reform.py - Reform that modifies income tax and standard deduction calculations

Tests

• Test cases for various income levels (below $600k, $600k-$1M, above $1M)
• Test cases for each filing status standard deduction

Status

• Documentation collected
• Parameters created
• Variables/Reform implemented
• Tests written
• CI passing

References

• HB979 Summary
• HB979 Bill Text
• Code of Virginia Section 58.1-320 (Income Tax Rates)
• Code of Virginia Section 58.1-322.03 (Standard Deductions)

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This is a draft PR. Implementation work is in progress.

[DTrim99]

Implementation Complete

Added Virginia HB979 income tax reform with the following:

Parameters Created

• gov/contrib/states/va/hb979/in_effect.yaml - Boolean to enable/disable reform
• gov/contrib/states/va/hb979/brackets.yaml - New income tax brackets:
  • Maintains existing brackets (2%, 3%, 5%, 5.75%)
  • Adds 8% on $600k-$1M
  • Adds 10% on $1M+

Reform Files

• reforms/states/va/hb979/__init__.py
• reforms/states/va/hb979/va_hb979_reform.py

Updated Files

• reforms/states/va/__init__.py - Added HB979 exports
• reforms/reforms.py - Added HB979 to structural reforms

Tests

6 test cases covering:

• Income below $600k threshold (baseline rates apply)
• Income between $600k and $1M (8% bracket)
• Income at $1M threshold
• Income above $1M (10% bracket)
• Joint filers above $1M
• Reform not in effect (baseline rates)

All tests pass ✓

Note: Standard deduction provisions were not included as they can be adjusted parametrically using existing parameters.