Budget & Taxes (Economic Development)

SB 1058 would establish Economic Freedom Zones in West Virginia's most distressed census tracts (defined by high unemployment and poverty rates), offering a 50% reduction in corporate and pass-through business income tax rates for all businesses and individuals operating within these zones. The bill mandates regulatory simplification by requiring two existing state rules to be repealed for every new rule in a zone and setting a 30-day deadline for permit approvals (with automatic approval if not met). To maintain fiscal responsibility, it includes a safeguard that would adjust tax rates if revenue loss exceeds 0.5% of state collections, while prohibiting targeted subsidies or preferential treatment for specific businesses. The program would expire in 2035 unless renewed by the legislature.