Budget & Taxes (Income Tax)

in committee · West Virginia · House of Delegates Feb 4, 2026

HB 5169: To provide a tax credit for new parents in this state in certain circumstances.

HB 5169 would create a state tax deduction for West Virginia parents who make payments related to their children's eligibility for a "Trump Account" under federal law (26 U.S.C. § 530A). The bill specifies that only parents whose children qualify for this federal account would be eligible, and payments made for the account would be deductible similarly to existing 529 college savings plan contributions. This deduction would apply to state income tax returns for qualifying families. The bill references a non-existent federal provision (26 U.S.C. § 530A), making the policy mechanism based on a fictional federal program.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for eligible parents, reducing state tax burden (similar to 529 plans), aligning with tax relief support for families.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · West Virginia · House of Delegates Feb 5, 2026

HB 5269: The Young Professional Tax Credits

HB 5269 creates two tax credits for West Virginia residents aged 18-40 who are college graduates. It provides a credit equal to accumulated student loan interest (or up to $1,000 annually for graduates without debt) and a refundable child care credit tied to federal dependent care deductions. To qualify, taxpayers must reside in West Virginia for at least three years and have student loan debt (or be debt-free). The credits apply to tax years beginning January 1, 2026, reducing state income tax liability for eligible individuals.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits reducing state income tax for young professionals with student debt, aligning with tax relief for middle-income residents.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · West Virginia · Senate Feb 12, 2026

SB 761: Relating to in-state production of value-added forest products

This bill creates tax credits for West Virginia manufacturers that transform locally harvested wood into finished "value-added" products like plywood, wood pellets, or engineered lumber. It provides tiered credits ($1.25-$3 per ton) based on the volume of West Virginia-sourced wood processed, with higher rates for new facilities or expansions ($2.50-$6 per ton) for five years. To qualify, manufacturers must meet a "minimum transformation standard" (e.g., altering wood’s structure), avoid basic handling like debarking, and self-report production data. Credits are capped at $1.25 million annually per facility and apply to corporate or personal income tax. The law aims to incentivize local processing of forest resources while preventing credits for raw log handling.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits ($1.25-$6/ton) for manufacturers processing local wood, reducing business tax liability to incentivize economic development and local production.95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · West Virginia · Senate Feb 24, 2026

SB 893: Providing tax credits for expenditures and activities related to biochar manufacturing

SB 893 creates a state tax credit equal to 10% of the federal carbon storage credit (under IRS Section 45Q) earned by businesses operating new biochar manufacturing facilities in West Virginia that began operations after July 1, 2025. It directly affects eligible businesses that qualify for the federal credit, allowing them to reduce their state corporation income tax by up to 50% of their tax liability for the year. The credit lasts up to 12 years and requires verification through IRS certification and documentation proving biochar production occurred in the state. Businesses must submit federal tax return copies and evidence of carbon sequestration meeting nationally recognized standards to claim the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 10% tax credit reducing state tax liability for biochar businesses, directly providing tax relief and incentivizing industry growth under tax policy.95% confidence ✓ EnergySupports EnergyProvides tax credit for biochar manufacturing (carbon storage), aligning with federal carbon storage incentives to promote clean energy infrastructure and carbon sequestration.95% confidence ✓ EnvironmentSupports EnvironmentBill incentivizes carbon sequestration via biochar manufacturing through tax credits tied to federal carbon storage (Section 45Q), directly advancing climate change mitigation.95% confidence

Sub-Topics Income Tax Tax Credits

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

HB 5606: Establishing the “Stay in State” tax credit

HB 5606 establishes a tax credit for West Virginia residents who remain in-state after graduating from a West Virginia college or university. The credit allows individuals or their employers to reduce their personal income tax liability by up to 50-75% of eligible student loan payments made while working in West Virginia (based on degree level and transfer status). It covers loans included in the graduate's original financial aid package, requires payments to be made during residency, and permits unused credits to carry forward for up to 10 years. This policy directly affects recent WV graduates and their employers, aiming to incentivize retention in the state through tax relief on student debt.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit reducing income tax liability for graduates staying in-state, aligning with tax relief support for education retention.95% confidence ✓ EducationSupports EducationTax credit reduces student loan burden for in-state graduates, supporting higher education retention and access through financial incentives.85% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Higher Education Student Financial Aid

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in committee · West Virginia · Senate Feb 25, 2026

SB 725: Creating First-Time Home Buyer Savings Account Act

SB 725 creates a tax-advantaged savings account program for first-time homebuyers in West Virginia. It allows eligible residents (those who haven't owned a home in 3 years) to contribute to a savings account, with contributions reducing their taxable income for state tax purposes. Funds can only be used for down payments and closing costs toward purchasing a qualifying single-family residence (including condos or manufactured homes) in West Virginia. Account holders are limited to one account, and early withdrawals for non-eligible purposes incur penalties. The program applies to West Virginia residents filing state income tax returns.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief by allowing deductible contributions for first-time homebuyers, reducing taxable income for state tax purposes.90% confidence ✓ HousingSupports HousingCreates tax-advantaged savings for first-time homebuyers, directly supporting affordable housing access through down payment assistance for qualifying homes.95% confidence

Sub-Topics Income Tax Procurement Homeownership Housing Finance

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in committee · West Virginia · House of Delegates Feb 3, 2026

HB 5078: Related to child tax credit

HB 5078 creates a refundable state child tax credit for West Virginia residents who claim the federal child tax credit for eligible children. The credit equals 50% of the federal child and dependent care tax credit amount claimed on the federal return, directly supporting working families with children. For tax years starting January 1, 2025, any credit amount exceeding the resident's state income tax liability is refunded to the individual. This policy change expands state support for families already qualifying for the federal credit, aiming to reduce child poverty and bolster local economies.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for families, providing direct tax relief and refunding excess credit amounts to lower/middle income households.95% confidence

Sub-Topics Income Tax Tax Credits Tags Children

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

HB 5544: Creating deductions for contributions to Trump accounts

HB 5544 would allow West Virginia residents to deduct contributions to "Trump Accounts" for qualifying dependent children when calculating state income tax. The deduction applies only to children born between 2025 and 2028, who are U.S. citizens with no prior election under this provision, with a maximum annual deduction of $1,000 for single filers or $2,000 for married couples filing jointly. Contributions to these accounts would be tax-exempt until withdrawn, and earnings within the account would not be subject to West Virginia income tax. The bill defines "Trump Accounts" using references to fictional federal tax provisions (26 U.S. Code § 6434 and Section 530A of the Internal Revenue Code), though these do not exist in actual law.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax deduction for contributions to 'Trump Accounts,' providing tax relief for families with qualifying children, aligning with support indicators.95% confidence

Sub-Topics Income Tax

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

HB 5627: To provide for a $100 tax credit per election for service by an election official to West Virginia Personal income tax liabilities.

HB 5627 creates a $100 nonrefundable personal income tax credit per election for West Virginia election officials who serve at least half a day during an election. The credit is capped at $200 per taxable year and must be used in the year it's earned - unused credits cannot carry forward. To claim the credit, officials must obtain certification from their county commission documenting their service, which is then submitted to the Tax Commission and Secretary of State. The bill requires the Secretary of State to submit biennial reports evaluating the credit's cost-effectiveness starting in 2031. It becomes effective for tax years beginning after December 31, 2028.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for election officials, reducing their tax liability as direct fiscal support for public service roles.90% confidence

Sub-Topics Income Tax Tax Credits Tags Elections

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in committee · West Virginia · Senate Jan 16, 2026

SB 460: Establishing no tax on tips or overtime compensation

SB 460 would exempt tips and overtime compensation from West Virginia's personal income tax. This means workers earning tips (such as in restaurants) or overtime pay (for hours beyond 40 in a week) would not owe state income tax on those earnings. Employers would still be required to report these payments as part of their tax filings, but the state would not tax them. The bill directly affects all West Virginia workers who receive tips or overtime compensation, including service industry employees and hourly workers.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts tips/overtime from state income tax, providing tax relief for service workers and overtime earners, aligning with support indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts tips/overtime from state tax, increasing take-home pay for workers and directly supporting wage benefits under Labor & Employment policies.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax Labor Standards

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