SB 402 expands West Virginia's apprenticeship tax credit to $2 per hour (capped at $2,000 annually per apprentice) for wages paid to registered apprentices in construction trades, directly benefiting employers and apprentices. It creates a new West Virginia Micro-Credential Program under the Higher Education Policy Commission to support workforce training. The bill also modifies tax rules to allow deductions for contributions to and receipts from voluntary portable benefits plans, and removes proficiency exam requirements for military-trained applicants seeking professional licenses. These changes aim to increase workforce participation and simplify licensing for veterans.
HB 4833 removes a 30% cap on municipal stabilization funds in West Virginia, allowing cities and towns to set higher funding levels without restriction. Currently, a municipality's stabilization fund cannot exceed 30% of its general fund budget; this bill eliminates that maximum limit. The change would directly affect all West Virginia municipalities by giving them greater flexibility to build financial reserves from surplus funds.
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.
SB 169 creates a West Virginia state tax credit for childcare expenses for residents who claim the federal childcare tax credit on their federal return. It provides a refundable credit equal to 50% of the federal credit amount for individuals with federal adjusted gross income under $30,000, 30% for incomes between $30,001-$45,000, and 20% for incomes between $45,001-$65,000. The credit is unavailable for those earning $65,000+ or receiving state childcare assistance (except for unreimbursed costs), and unused credits are refunded rather than carried forward. The credit applies to 2027 tax years and is based on federal Form 2441 claims.
HB 4822 redirects tax revenue from "High Impact Data Centers" (as defined under West Virginia law) to three specific recipients: the Public Employees Insurance Association (PEIA) fund, local counties, and public school boards. The bill amends tax distribution rules to require that incremental property tax revenue from these data centers - calculated using a new formula based on assessed value and levy rates - be reallocated instead of following previous distribution methods. This change directly affects data centers certified as "High Impact" under §11-6N-2, ensuring their tax contributions support state health insurance programs, county services, and school funding. The policy shift replaces prior tax allocation rules with a fixed distribution structure for these facilities.
