Budget & Taxes (Income Tax)

in committee · West Virginia · House of Delegates Jan 29, 2026

HB 4968: To exempt the first $20,000 of earnings from the state income tax for West Virginia residents

HB 4968 would exempt the first $20,000 of annual income from West Virginia state income tax for resident individuals and married couples filing jointly. Effective for tax years beginning January 1, 2026, the bill modifies the tax calculation by reducing taxable income by $20,000 before applying the state tax rate. This directly benefits low-to-moderate income West Virginia residents who earn under $20,000 annually. The change applies to both single filers and couples filing jointly, reducing their state tax liability without altering federal tax treatment.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts first $20k income from tax, providing direct relief to low-to-moderate earners, aligning with tax relief indicators for Budget & Taxes.95% confidence

Sub-Topics Income Tax Sales Tax

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failed · West Virginia · Senate Mar 14, 2026

SB 389: Historic Rehab Building Credit Act

SB 389 creates a 25% state income tax credit for property owners who rehabilitate certified historic buildings in West Virginia. The credit applies to both residential and non-residential buildings listed on the National Register of Historic Places or located in designated historic districts, as certified by the West Virginia Department of Tourism and the National Park Service. To qualify, rehabilitation work must meet "Secretary of the Interior's Standards" and cost at least 20% of the property's assessed value. Property owners can claim this credit against income taxes imposed under specific sections of the state tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 25% state income tax credit for historic building rehab, reducing tax burden for property owners. Direct tax relief aligns with fiscal responsibility indicators.95% confidence ✓ HousingSupports HousingProvides 25% tax credit for rehabilitating historic residential buildings, incentivizing preservation and development of housing stock under economic development framework.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Historic Preservation Housing Finance Property Taxes

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in committee · West Virginia · House of Delegates Jan 16, 2026

HB 4479: Timber Innovation and Manufacturing Boost for Economic Revitalization Act

HB 4479 provides tax credits to West Virginia manufacturers that transform locally harvested wood into value-added products like veneer, engineered lumber, or wood pellets. The credits - ranging from $1.25 to $6 per ton of processed wood - apply to corporate or personal income tax based on volume tiers, with annual caps of $1.25 million for existing facilities and $2.5 million for new operations or expansions. To qualify, manufacturers must meet a "minimum transformation standard" (e.g., altering wood structure) using West Virginia-sourced feedstock, excluding basic handling like cutting or sorting. Credits are prorated based on the percentage of West Virginia wood used in production.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to manufacturers, reducing tax liability for wood processing businesses, directly impacting state tax policy and fiscal management.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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in committee · West Virginia · House of Delegates Jan 19, 2026

HB 4513: Authorizing adjustment from federal adjusted gross income for certain law enforcement pension benefit payments

HB 4513 would expand a state tax exemption for pension benefits by extending the existing $2,000 annual exclusion from West Virginia income tax to include Division of Natural Resources police, deputy sheriffs, full-time firefighters, and municipal police officers. Currently, this exemption applies to some retirement benefits but excludes these specific public safety roles. The bill modifies tax code sections to explicitly add these officers to the list of law enforcement personnel whose pension payments qualify for the exemption. This change directly affects eligible officers in these roles by reducing their taxable income for state tax purposes. The bill is in early stages, having been introduced on January 19, 2026, and referred to the House Finance Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemption for public safety pensioners, providing tax relief by modifying tax code to include specific officers in existing $2,000 annual exclusion.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands tax exemption for public safety pension benefits, enhancing retirement compensation for covered workers per bill's explicit modification of tax code.85% confidence

Sub-Topics Income Tax Pensions Tax Incentives Retirement Benefits Tags Public Safety

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in committee · West Virginia · Senate Feb 4, 2026

SB 450: Relating to tax credit for qualified rehabilitated buildings investment

SB 450 establishes a 25% state income tax credit for property owners who rehabilitate certified historic buildings in West Virginia. It directly affects residential and non-residential property owners who work on structures listed on the National Register of Historic Places or within designated historic districts, after review by the West Virginia Division of Culture and History. The credit applies to "qualified rehabilitation expenditures" meeting specific criteria, including a requirement that rehabilitation costs equal at least 20% of the building's assessed value. The bill reorganizes existing historic preservation tax rules into a new centralized article (§11-13NN) with defined terms and procedures for claiming the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 25% tax credit for historic building rehab, reducing tax burden for property owners, aligning with tax relief support indicators.95% confidence ✓ HousingSupports HousingBill provides tax credit for rehabilitating historic buildings, incentivizing housing development and preservation, directly advancing housing stock maintenance and renewal.90% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Historic Preservation Property Taxes

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in committee · West Virginia · House of Delegates Jan 22, 2026

HB 4741: To require operators of gas and oil wells to withhold royalty taxes due from the lease holder and remit said withholdings to the appropriate County Tax Office.

HB 4741 requires oil and gas operators (lessees) to withhold West Virginia personal income tax from royalty payments made to property owners (lessors) and remit the withheld amount to the state Tax Commissioner. Property owners receive credit for the withheld tax against their income tax liability and can claim refunds for overpayments. Operators must provide annual statements detailing withheld amounts to property owners and file reconciliation reports with the Tax Commissioner by January 31 each year, including copies of statements provided to lessors. This law directly affects gas and oil well operators and property owners receiving royalty payments from mineral leases.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates tax withholding from royalty payments to ensure proper collection, strengthening tax compliance and revenue flow to state coffers.95% confidence

Sub-Topics Income Tax

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in committee · West Virginia · Senate Jan 14, 2026

SB 75: Exempting certain pension benefits from taxation

SB 75 exempts all pension benefits received by first responders (including police, firefighters, state police, and deputy sheriffs) from West Virginia's state income tax, regardless of the amount. This expands existing tax exemptions by removing the previous $2,000 annual limit on pension tax breaks for these workers. The bill applies to current and future retirees who qualify under West Virginia's police, fire, or state police retirement systems, including those who move to West Virginia after retiring. It directly affects first responders and their families by eliminating state income tax on their full retirement benefits. The change modifies West Virginia Code §11-21-12 to exclude all qualifying pension income from taxable income calculations.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts first responder pensions from state income tax, removing a $2,000 annual limit, providing direct tax relief for this group.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts first responders' pension benefits from state tax, expanding tax benefits and increasing disposable income for these workers.95% confidence

Sub-Topics Income Tax Pensions

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in committee · West Virginia · House of Delegates Jan 30, 2026

HB 5007: Creating an income tax deduction for gym memberships

HB 5007 would create a state income tax exemption for West Virginia residents who pay for gym memberships at gyms located within the state. The bill allows taxpayers to reduce their taxable income by $60 per month, capped at $720 annually for gym membership costs. It directly affects individual taxpayers who maintain gym memberships at in-state facilities and would lower their state income tax liability. The policy change is limited to qualifying gym memberships purchased within West Virginia, with no additional eligibility requirements specified.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax relief via income tax deduction for gym memberships, reducing taxable income and state tax liability for qualifying residents.95% confidence

Sub-Topics Income Tax Tax Incentives

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signed · West Virginia · Senate Jun 25, 2026

SB 400: Updating personal income tax definitions and provision of law relating to gaming and gambling losses

This bill updates West Virginia's personal income tax definitions to align with recent federal tax changes. It specifically preserves the ability for taxpayers to deduct gaming and gambling losses on their state returns for tax years beginning on or after January 1, 2026, ensuring this deduction remains available even if federal rules change. The bill adjusts how "federal adjusted gross income" is defined for state tax purposes and sets retroactive effective dates for 2025 tax years. It directly affects West Virginia taxpayers who itemize deductions and claim gambling losses.

Topics ✓ Budget & TaxesSupports Budget & TaxesPreserves tax deduction for gaming losses, maintaining existing tax relief for taxpayers and aligning with federal changes without reducing benefits.90% confidence

Sub-Topics Income Tax

in committee · West Virginia · House of Delegates Jan 15, 2026

HB 4347: To remove income tax from overtime work

HB 4347 would exclude overtime pay (hours worked over 40 in a week) and all tips/gratuities from West Virginia's taxable income for full-time hourly employees. This change modifies the state's adjusted gross income calculation by removing these specific income sources from taxation. The bill directly affects hourly workers in jobs requiring overtime, such as retail, hospitality, and manufacturing, as well as service industry workers relying on tips. It does not create new tax exemptions but removes existing taxable income for these specific categories. The policy change would reduce income tax liability for affected workers on their overtime and tip earnings.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes overtime and tips from taxable income, providing tax relief to hourly workers (lower/middle income), aligning with tax relief indicators for Budget & Taxes.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRemoves state income tax on overtime and tips for hourly workers, increasing net earnings without reducing benefits. Directly enhances take-home pay for labor force in affected sectors.90% confidence

Sub-Topics Business Taxes Income Tax Labor Standards

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