Reducing corporate net income tax

Senate Bill 397 would reduce West Virginia's corporate income tax rate to 6.5% for tax years beginning on or after January 1, 2027. It directly affects corporations operating in the state or earning income from West Virginia sources, excluding those already exempt under current law. The bill includes a condition that the tax reduction would be suspended for one year if the state's reserve funds fall below a specified threshold relative to the budget. This change follows a series of previous rate reductions in the state's corporate tax structure.