Continuing personal income tax adjustment to gross income of certain retirees receiving pensions from defined pension plans

HB 2604 reinstates a personal income tax adjustment for West Virginia retirees whose pension plans terminated, resulting in reduced payments from an insurance guarantor. It allows eligible retirees to subtract the annual difference between their promised pension amount and the reduced payment they actually receive from their taxable income. The adjustment is capped at $2 million in annual state revenue loss, requiring the Tax Commissioner to reduce the percentage if costs exceed this threshold. The policy applies to tax years 2025 through 2026 and terminates after December 31, 2026.