HB 5030 modifies West Virginia's tax code to expand tax exemptions for certain public safety pensions. It adds Division of Natural Resources police, deputy sheriffs, full-time firefighters, and municipal police officers to the existing list of law enforcement personnel who can exclude the first $2,000 of retirement benefits from state taxable income. The bill amends §11-21-12(c)(6) of the West Virginia Code to include these roles under the tax-exempt pension provision. This change directly affects current and future retirees in these specific public safety professions by reducing their state income tax burden on pension payments. The policy change is limited to the first $2,000 of qualifying pension income per year, consistent with existing tax rules.
HB 5560 would exempt the first $2,000 of retirement benefits received by retired law enforcement officers under West Virginia's Public Employees Retirement System (PERS) from state income tax. This bill modifies existing tax law to specifically include former law enforcement officers in the current exemption for PERS retirement benefits, which previously applied to teachers and other public employees. The policy change directly affects retired police and firefighters who receive PERS pensions, ensuring their initial $2,000 in annual retirement income is not subject to state taxation. This amendment expands an existing tax exemption to explicitly cover law enforcement retirees, aligning with the bill's stated purpose of providing tax relief for this group.
HB 5084 replaces West Virginia's existing non-refundable child tax credit with a new refundable credit. Starting in 2026, eligible West Virginia residents who claim the federal child tax credit for a qualifying child on their federal return will receive a $1,000 state credit per child. If the credit exceeds the resident's state income tax liability, the excess amount is refunded directly to them. This bill directly affects working families with children who qualify for the federal credit, aiming to reduce child poverty and support local economies through a permanent state-level benefit. The bill repeals the current non-refundable credit (§11-21-26) and establishes the new refundable credit under §11-21-98.
HB 5076 prohibits tax preparation software companies from charging fees to West Virginia taxpayers for electronically filing state tax returns. The bill directly affects software developers and vendors (including online platforms) that provide tax preparation tools, banning them from adding fees for e-filing services. Key provisions define "electronic filing" as internet-based submission and require all authorized tax returns to be filed without added costs. This policy change ensures taxpayers pay no extra fee specifically for using software to submit their state tax returns electronically. The bill applies to all taxpayers liable for West Virginia personal income tax.
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.
This bill exempts capital gains from gold, silver, and cryptocurrency transactions from West Virginia's personal income tax. It directly affects residents who sell these assets at a profit, as the state would no longer tax the gain. The key provision removes net capital gains from "precious metal bullion" (like gold/silver coins/bars) and "cryptocurrency" from taxable income under the state's tax code. This creates a specific tax exemption for these assets, distinct from other investment gains. The policy change would apply to all West Virginia taxpayers with qualifying gains, effective upon enactment.
HB 5224 creates a personal income tax credit for West Virginia election officials who serve in elections. It provides a $100 credit per election (capped at $200 annually) that directly reduces the tax bill of eligible officials who meet service requirements. To claim the credit, officials must obtain certification from their county commission documenting their election service, which must be submitted to both the Tax Commission and Secretary of State. The credit is nonrefundable, cannot be carried forward to future years, and applies only to taxable years beginning after December 31, 2028.
SB 735 would eliminate West Virginia's corporate net income tax over a four-year period by reducing the tax rate annually until it reaches zero. The bill applies to corporations conducting business in the state, excluding those already exempt under current law. The key mechanism is a scheduled annual reduction in the tax rate, with the tax fully phased out by the end of the four-year period. This change would remove a direct tax on corporate profits, altering the state's primary revenue source for business taxation.
SB 710 allows West Virginia residents who pay income tax to foreign countries on foreign earnings to claim a credit against their West Virginia state income tax. This prevents double taxation by reducing the state tax owed on that foreign income, applying only when federal tax rules would otherwise cause duplicate taxation. The credit covers income taxed by foreign governments and is available for taxable years through July 1, 2070, after which it expires. The bill directly affects West Virginia residents with foreign-sourced income who paid taxes to other countries.
HB 5272 allocates $250 million from West Virginia's Revenue Shortfall Fund ($100 million) and Income Tax Reserve Fund ($150 million) to establish a Flood Resiliency Trust Fund for proactive flood prevention. The fund will directly support communities vulnerable to flooding by financing infrastructure and initiatives to reduce future flood impacts. Key provisions require annual expenditure reports from the State Resiliency Officer, approval by the State Resiliency Office Board, and a 6% dedication of federal disaster recovery funds toward flood resiliency planning. This one-time funding jumpstarts the State Resiliency and Flood Protection Act without requiring ongoing annual appropriations.
