McDonnell, Deeds pushing tax credits

AND JEFF E. SCHAPIRO Times-Dispatch Staff Writers

Two prospects for governor are pushing election-year crowd pleasers -- tax breaks -- before the 2009 General Assembly.

Attorney General Bob McDonnell, the only Republican candidate for governor, wants to create a state tax credit of up to $250 per couple and $125 per individual for anyone purchasing school supplies. It would apply to parents of public or private school children, home schoolers and teachers.

State Sen. R. Creigh Deeds, D-Bath County, one of three Democrats seeking the nomination to run for governor, would create a tax credit of up to $10,000 per business for job-creating investments.

In a conference call with reporters today, McDonnell said he kept his legislative agenda light, so the legislature could focus on the $3.2 billion budget shortfall facing the state.

McDonnell stopped short of supporting a proposal by Gov. Timothy M. Kaine to allow no-excuse absentee voting in Virginia, but he will propose a measure that would lower the number of registered voters needed to create a new precinct as a way of reducing the time voters wait in line.

McDonnell said he is neutral on the absentee-voting measure. He also would require an additional election official to arrive at the polling place an hour before closing time to assist in the final vote tabulation.

Deeds, who unveiled his program earlier in the week, would provide a refund on sales taxes paid to firms on capital purchases, if those purchases create at least 10 new jobs.

Deeds would exempt from Virginia's 5 percent sales tax homeowner purchases of solar or wind-energy systems.

Both candidates would go after predatory lenders. Deeds would prohibit fraud and negative amortization loans by mortgage brokers. McDonnell would remove the mortgage lender exemption from the Virginia Consumer Protection Act.

McDonnell also would amend the state's identity theft statute to make it apply to the theft of someone's identity to obtain loans or credit. Current law only addresses theft to obtain goods and services.

As he has in the past, Deeds is introducing a measure to create a bipartisan redistricting committee. The General Assembly must draw new district boundaries in 2011 after the 2010 census.

Deeds is opposed for the Democratic nomination by McLean businessman Terry McAuliffe and former Del. Brian J. Moran of Alexandria.

Contact Tyler Whitley at (804) 649-6780 or .

Contact Jeff E. Schapiro at (804) 649-6814 or .