SB 935 repeals a tax exemption for certain coal-fired power plants in West Virginia, directly affecting owners/operators of coal plants operational before January 1, 1995. The bill reduces the taxable generating capacity for these plants to 45% of their official capability (instead of 100%) for tax years starting July 1, 2021, but requires plants to remain operational until at least July 1, 2025, to qualify. If such plants close before July 1, 2025, owners must repay tax savings through a recapture tax, though federal mandates exempting closures avoid this requirement. The law applies specifically to "merchant power plants" (independent generators) and modifies existing tax calculation rules under West Virginia Code §11-13-2o.
SB 460 would exempt tips and overtime compensation from West Virginia's personal income tax. This means workers earning tips (such as in restaurants) or overtime pay (for hours beyond 40 in a week) would not owe state income tax on those earnings. Employers would still be required to report these payments as part of their tax filings, but the state would not tax them. The bill directly affects all West Virginia workers who receive tips or overtime compensation, including service industry employees and hourly workers.
HB 4883 would exempt overtime pay from West Virginia's personal income tax. Currently, workers pay state income tax on overtime earnings, but this bill would remove that tax obligation. The provision applies directly to all West Virginia employees who earn overtime pay under state labor laws. This change would increase take-home pay for affected workers by eliminating the tax on overtime hours.
SB 621 creates a tax credit for West Virginia corporations that operate existing employer-provided or employer-sponsored child care facilities on workplace premises. It allows corporations to claim a credit equal to 100% of their annual operational costs (excluding property costs) for these facilities, minus any amounts paid by employees. The credit is limited to the corporation’s tax liability for the year and can be carried forward up to five years if unused. This bill directly affects businesses operating qualifying on-site child care, providing a financial incentive to maintain or expand such services.
SB 392 reduces West Virginia's personal income tax rates for taxpayers starting January 1, 2026, with automatic future reductions tied to state revenue growth. The bill requires the Secretary of Revenue to calculate annual tax rate cuts when state revenue exceeds inflation-adjusted 2019 levels (base year: $4.29 billion), applying the reduction equally across all tax brackets. These reductions cannot exceed a 10% cut in existing rates and will be certified annually after August 15 each year. The bill also lowers withholding rates on nonresident real estate sales, lottery winnings, and certain composite returns. This legislation directly affects all West Virginia income tax filers and nonresidents earning income within the state.
HB 4013 establishes the "Mountaineer Flexible Tax Credit Act of 2026," creating a state tax credit program for businesses that invest in new projects or expansions within West Virginia. It directly affects qualified businesses seeking economic development incentives by requiring them to apply through the West Virginia Department of Commerce, with credits calculated based on new full-time jobs and average employer wages. Key provisions include standardized application procedures, annual reporting requirements, mandatory audits, and definitions for terms like "qualified business" and "average state wage." The bill aims to encourage private investment and job creation as part of broader economic development efforts, with the tax credit program applying to businesses meeting specific wage and employment criteria.
SB 1, the Small Business Growth Act, creates a new tax credit program administered by the West Virginia Department of Commerce to incentivize investment in small businesses. It provides insurance companies with a credit against their state premium tax equal to 15% of qualifying capital investments made by certified "growth funds" into eligible West Virginia businesses. Eligible businesses must have fewer than 250 employees and principal operations in the state, and investments are limited to 20% of a growth fund's capital authority or $7.5 million per business. The credit is claimed annually based on certified investments, with the program requiring annual reporting and prohibiting certain investment types.
HJR 22 proposes a constitutional amendment to give the West Virginia Legislature authority to reduce or eliminate ad valorem taxes on business inventory and other tangible personal property. The amendment would allow the Legislature to set different tax rates for various property types (like vehicles or business equipment), exempt specific items from taxation, or classify property as real or personal for tax purposes. It does not change current tax rates but creates a legal framework for future legislative action. The amendment requires voter approval in the 2026 general election and must comply with existing constitutional tax rate limits.
HB 4398 increases the privilege tax rate for licensed sports wagering operators in West Virginia from 10% to 25% of their adjusted gross sports wagering receipts. This tax, paid weekly by operators, replaces all other state and local taxes on sports wagering operations (except property tax), covering both revenue and equipment purchases. Operators must submit weekly reports showing gross receipts, adjusted receipts, and tax due, with negative weekly receipts allowed to be carried forward to offset future tax liability. The bill directly affects licensed sports wagering businesses operating under West Virginia's Lottery Sports Wagering Act.
SB 673 imposes a 3-cent tax per milligram of nicotine on all e-cigarette products sold in West Virginia, replacing a previous tax based on product type. This tax applies to both disposable (closed-system) and refillable (open-system) devices, with fallback rates (40mg per unit for disposables, 6mg/mL for refillables) if labeling is unclear. All revenue generated will be directed to the Public Employees Insurance Agency (PEIA) to reduce or stabilize state employees' health insurance premiums, without replacing existing employer contributions. The bill directly affects e-cigarette distributors and manufacturers in the state, effective July 1, 2026.
