SB 450 establishes a 25% state income tax credit for property owners who rehabilitate certified historic buildings in West Virginia. It directly affects residential and non-residential property owners who work on structures listed on the National Register of Historic Places or within designated historic districts, after review by the West Virginia Division of Culture and History. The credit applies to "qualified rehabilitation expenditures" meeting specific criteria, including a requirement that rehabilitation costs equal at least 20% of the building's assessed value. The bill reorganizes existing historic preservation tax rules into a new centralized article (§11-13NN) with defined terms and procedures for claiming the credit.
HB 4741 requires oil and gas operators (lessees) to withhold West Virginia personal income tax from royalty payments made to property owners (lessors) and remit the withheld amount to the state Tax Commissioner. Property owners receive credit for the withheld tax against their income tax liability and can claim refunds for overpayments. Operators must provide annual statements detailing withheld amounts to property owners and file reconciliation reports with the Tax Commissioner by January 31 each year, including copies of statements provided to lessors. This law directly affects gas and oil well operators and property owners receiving royalty payments from mineral leases.
SB 75 exempts all pension benefits received by first responders (including police, firefighters, state police, and deputy sheriffs) from West Virginia's state income tax, regardless of the amount. This expands existing tax exemptions by removing the previous $2,000 annual limit on pension tax breaks for these workers. The bill applies to current and future retirees who qualify under West Virginia's police, fire, or state police retirement systems, including those who move to West Virginia after retiring. It directly affects first responders and their families by eliminating state income tax on their full retirement benefits. The change modifies West Virginia Code §11-21-12 to exclude all qualifying pension income from taxable income calculations.
HB 5007 would create a state income tax exemption for West Virginia residents who pay for gym memberships at gyms located within the state. The bill allows taxpayers to reduce their taxable income by $60 per month, capped at $720 annually for gym membership costs. It directly affects individual taxpayers who maintain gym memberships at in-state facilities and would lower their state income tax liability. The policy change is limited to qualifying gym memberships purchased within West Virginia, with no additional eligibility requirements specified.
This bill updates West Virginia's personal income tax definitions to align with recent federal tax changes. It specifically preserves the ability for taxpayers to deduct gaming and gambling losses on their state returns for tax years beginning on or after January 1, 2026, ensuring this deduction remains available even if federal rules change. The bill adjusts how "federal adjusted gross income" is defined for state tax purposes and sets retroactive effective dates for 2025 tax years. It directly affects West Virginia taxpayers who itemize deductions and claim gambling losses.
HB 4347 would exclude overtime pay (hours worked over 40 in a week) and all tips/gratuities from West Virginia's taxable income for full-time hourly employees. This change modifies the state's adjusted gross income calculation by removing these specific income sources from taxation. The bill directly affects hourly workers in jobs requiring overtime, such as retail, hospitality, and manufacturing, as well as service industry workers relying on tips. It does not create new tax exemptions but removes existing taxable income for these specific categories. The policy change would reduce income tax liability for affected workers on their overtime and tip earnings.
HB 4260 authorizes West Virginia's Tax Department to establish specific rules for claiming property tax payments as income tax credits. This directly affects homeowners who pay property taxes and may qualify for these credits. The bill approves a previously modified rule (110 CSR 21H) that clarifies how property tax payments can be applied toward income tax obligations, without changing the credit amount or eligibility criteria. It ensures the Tax Department can implement administrative procedures for this existing credit mechanism.
HB 4713 exempts cash tips received by workers from West Virginia's personal income tax. This directly affects service industry employees, such as servers and bartenders, who earn cash tips. The bill adds a new section to the state tax code (§11-21-12o) stating that cash tips from any source are not subject to income tax. The change applies only to cash tips, not digital or non-cash tip payments.
SB 248 creates a nonrefundable $25,000 tax credit against West Virginia state personal income taxes for eligible returning residents. It directly affects individuals who were born in West Virginia or lived/worked there for 10+ years, left for at least 10 consecutive years before 2025, and returned as residents on or after January 1, 2025. The credit reduces state income tax bills (up to $25,000 annually) and can be carried forward to future tax years but not back to prior years. The credit is available starting after December 31, 2026, and expires after December 31, 2030, with the Tax Commissioner required to verify eligibility and report usage annually.
HB 4895 would create a $2,000 state income tax exemption for each unborn child carried by a West Virginia resident individual, effective for tax years beginning January 1, 2027. The exemption applies to any pregnancy at any stage of development that is not aborted, as defined in the bill. This policy reduces taxable income for qualifying residents rather than providing direct cash payments. The bill directly affects West Virginia taxpayers who are pregnant and filing state income taxes.
