HB 4260 authorizes West Virginia's Tax Department to establish specific rules for claiming property tax payments as income tax credits. This directly affects homeowners who pay property taxes and may qualify for these credits. The bill approves a previously modified rule (110 CSR 21H) that clarifies how property tax payments can be applied toward income tax obligations, without changing the credit amount or eligibility criteria. It ensures the Tax Department can implement administrative procedures for this existing credit mechanism.
HB 4713 exempts cash tips received by workers from West Virginia's personal income tax. This directly affects service industry employees, such as servers and bartenders, who earn cash tips. The bill adds a new section to the state tax code (§11-21-12o) stating that cash tips from any source are not subject to income tax. The change applies only to cash tips, not digital or non-cash tip payments.
SB 248 creates a nonrefundable $25,000 tax credit against West Virginia state personal income taxes for eligible returning residents. It directly affects individuals who were born in West Virginia or lived/worked there for 10+ years, left for at least 10 consecutive years before 2025, and returned as residents on or after January 1, 2025. The credit reduces state income tax bills (up to $25,000 annually) and can be carried forward to future tax years but not back to prior years. The credit is available starting after December 31, 2026, and expires after December 31, 2030, with the Tax Commissioner required to verify eligibility and report usage annually.
HB 4895 would create a $2,000 state income tax exemption for each unborn child carried by a West Virginia resident individual, effective for tax years beginning January 1, 2027. The exemption applies to any pregnancy at any stage of development that is not aborted, as defined in the bill. This policy reduces taxable income for qualifying residents rather than providing direct cash payments. The bill directly affects West Virginia taxpayers who are pregnant and filing state income taxes.
SB 652 changes how property tax revenues from high-impact data centers are distributed in West Virginia. It requires 80% of the tax increment (additional revenue from data center property value growth) to go directly to the county where the data center is located, starting July 1, 2025. The remaining 20% is allocated as follows: 50% to the Personal Income Tax Reduction Fund, 10% to all counties based on population, 5% to an Economic Enhancement Grant Fund, and 5% to an Electric Grid Security Fund. This bill directly affects counties hosting certified high-impact data centers by increasing their local revenue from these facilities.
This bill exempts certain non-grantor trusts from West Virginia's personal income tax if they are administered within the state. Specifically, it removes income tax liability for non-grantor trusts (trusts not treated as grantor trusts under federal law) that are created under West Virginia law or have their legal situs in the state, and are managed by a West Virginia resident trustee or a licensed private trust company with a physical presence in the state. The exemption applies to taxable years beginning January 1, 2027, and affects trust administrators and beneficiaries of qualifying trusts. This is a direct tax policy change that alters which entities owe state income tax, without altering tax rates for individuals or other entities.
SB 624 extends the expiration date of a tax modification that reduces personal and corporate income tax for qualified opportunity zone businesses in West Virginia. It directly affects businesses newly registered in West Virginia between January 1, 2019, and January 1, 2024, that operate within designated opportunity zones. The bill prevents the current 2024 sunset date from taking effect, allowing these businesses to continue claiming the tax reduction for the full 10-year period authorized under existing law. This change ensures ongoing eligibility for the tax benefit without requiring new business registrations.
HB 4858 establishes a 25% state income tax credit for property owners who rehabilitate certified historic buildings in West Virginia. It directly affects residential and commercial property owners who restore structures listed on the National Register of Historic Places or designated as "certified historic structures" by the National Park Service and West Virginia Division of Culture and History. The bill defines "qualified rehabilitation expenditures" using federal standards (26 U.S.C. §47), requires projects to meet Secretary of the Interior rehabilitation standards, and creates a centralized process for claiming the credit. It replaces older, fragmented provisions with a unified system and includes procedures for credit recapture if requirements aren't met.
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.
SB 680 would repeal West Virginia's personal income tax and corporate net income tax. It directly affects all West Virginia residents (who pay personal income tax) and corporations operating in the state (which pay corporate net income tax). The bill eliminates these taxes for income earned after January 1, 2028, while requiring collection of existing tax liabilities for years ending before December 31, 2027. The repeal takes effect July 1, 2026, with the State Tax Commissioner managing final filings and refunds for prior tax years.
