SB 623, titled the "West Virginia-Powered Data Center Incentive Act," creates new economic incentives for *new* data centers to locate in West Virginia by offering reduced property taxes and a tax credit for coal-fired electric utilities supplying them with power. To qualify, data centers must meet specific eligibility criteria and apply through a state process, with incentives requiring ongoing compliance to avoid recapture. The bill aims to attract data center investment to generate jobs, boost economic growth, and support West Virginia's coal industry by leveraging its coal-generated electricity infrastructure.
SB 7 increases West Virginia's homestead property tax exemption from $20,000 to $40,000, reducing tax bills for eligible primary homeowners. It applies to residents aged 65 or older, or those certified as permanently and totally disabled, who meet residency requirements (such as living in the state for two consecutive years). The exemption is applied as a direct deduction from a home's assessed value, meaning no property tax is due on the first $40,000 of a home's value. The bill also updates residency rules to include exceptions for military service members and returning residents within five years.
This bill requires companies (lessees) that pay mineral royalty payments (e.g., for coal, oil, or gas) to nonresident owners (lessors) to withhold West Virginia income tax from those payments. Lessees must withhold tax on annual payments exceeding $1,000, remit the withheld amount to the state, and provide annual statements to the nonresident lessors. Nonresident owners will be credited for the withheld tax against their state tax liability and can receive refunds for overpayments. The law aims to ensure nonresident mineral rights owners pay taxes on income earned from West Virginia resources, closing a revenue gap identified by the legislature.
House Bill 4902 provides a 3% salary adjustment for non-uniform administrative staff in West Virginia's Division of Corrections and Rehabilitation (DCR) who have at least three years of continuous service, effective July 1, 2026. Employees with less than three years of service will receive the same 3% adjustment after completing three years, calculated based on their salary at that time. The bill directs that funding for these increases come from the DCR's general revenue appropriations and specifies that adjustments will take effect even if they exceed standard pay grade maximums. This change directly affects DCR non-uniform administrative staff by creating a separate pay structure for their roles.
SB 592 creates a tax credit program for West Virginia short line railroads and related infrastructure. It provides a 50% tax credit on qualified maintenance costs (capped at $5,000 per mile of track) and new infrastructure investments (capped at $2 million per project, with a $5 million annual limit). Eligible taxpayers include Class II/III railroads operating in West Virginia and owners/lessees of rail sidings or industrial spurs. Credits can be carried forward for up to five years or transferred to other taxpayers via written agreement. The bill directly supports rail infrastructure modernization by reducing costs for qualifying rail operators.
HB 4950 establishes the West Virginia Freedom and Innovation Pilot Act of 2026, creating a voluntary program for any West Virginia county to join. Participating counties would receive $5,775 per enrolled student (as of December 2025) with a 1% annual funding increase if enrollment grows, while being exempt from state-mandated staffing ratios, service quotas, and central salary schedules - though they must still follow the Third Grade Success Act and federal requirements. Counties in the program maintain full control over school calendars, class sizes, salaries, and benefits, but administrative costs are capped at 7% of their total annual budget. The pilot begins July 1, 2026, and will be reviewed by the Legislative Oversight Commission on Education Accountability by July 1, 2031, after which it will sunset unless extended.
HB 4571, the "Taxpayer Protection Act," prevents West Virginia residents from being wrongly classified as independent contractors instead of employees. It requires the Tax Commissioner to apply an "ABC" test to determine worker status: (1) absence of employer control, (2) work being unusual for the employer’s business, and (3) the worker operating as an independent business. Employers must prove all three criteria to classify a worker as an independent contractor; otherwise, the worker is presumed an employee for tax purposes. This ensures the state collects proper income taxes from employment relationships, directly affecting both workers (who may gain tax protections) and hiring businesses (which must comply with the classification rules).
HB 4883 would exempt overtime pay from West Virginia's personal income tax. Currently, workers pay state income tax on overtime earnings, but this bill would remove that tax obligation. The provision applies directly to all West Virginia employees who earn overtime pay under state labor laws. This change would increase take-home pay for affected workers by eliminating the tax on overtime hours.
SB 164 establishes a temporary Joint Commission on Government Efficiency to review state agencies and identify ways to reduce waste, improve efficiency, and save costs. The commission, composed of legislative members and private-sector volunteers with business management experience, will conduct audits and make recommendations but cannot implement changes directly. State agencies must cooperate with the commission’s requests; noncompliance risks losing future funding. The commission expires 18 months after enactment and operates without state funding or staff compensation.
HB 4507 would exempt the salaries of certain first responders from West Virginia's state personal income tax. It directly affects law enforcement officers, paid firefighters, correctional officers, and emergency medical services (EMS) personnel as defined in existing state law. The bill adds a new provision to the tax code stating these workers' salaries are not subject to state income tax. This change applies only to their earned income from these specific roles, not other income they may receive.
