Virginia General Assembly 2026: Post-Crossover Update for CPAs

Crossover was Tuesday, Feb. 17, and it has reshaped the landscape at the General Assembly. While tax conformity and PTET are expected to be resolved in the caboose budget, several other tax policy issues remain active as bills move to the opposite chamber.

Continue to follow key legislative developments through our online Bill Tracker and monitor our Voter Voice landing page for opportunities to engage when CPA voices are needed.

Broader tax policy landscape

A number of tax-related proposals advanced past crossover, including measures affecting business taxation, credits and administrative processes. Of particular note:

• Targeted tax credit expansions and modifications continue to move forward, but could raise questions related to long-term revenue stability and overall tax code complexity.
• Selective tax relief proposals remain in play, though many face scrutiny over fiscal impact as budget negotiations intensify.
• Administrative and procedural changes affecting filing requirements, penalties and enforcement authority are advancing and could have compliance implications for practitioners and clients.

At the same time, several broader-based tax proposals — including measures that could have expanded the sales tax base to additional services — did not advance prior to crossover. However, revenue pressures remain part of the larger budget conversation and some of these proposals could resurface when the amendments to the new biennial budget are released next week.

Budget context matters

With crossover complete, the focus increasingly shifts to budget negotiations. Even bills that advanced independently may ultimately be reshaped, delayed or incorporated into the new biennial budget.

For CPAs, the central themes remain predictability, administrability and avoidance of unnecessary complexity. Tax policy changes — even well-intended ones — can create significant compliance ripple effects if not thoroughly vetted.

What to watch

As legislation moves through the second chamber, we are closely monitoring:

• Amendments that alter compliance obligations or reporting requirements.
• Fiscal impact discussions that may affect the viability of tax proposals.
• Any late-session efforts to revive or attach broader tax measures.

We will continue to engage lawmakers to promote sound, workable tax policy that supports Virginia businesses and taxpayers — and keeps compliance practical for the CPA community.
Stay tuned for further updates as the session heads into its final stretch.