This bill proposes a constitutional amendment to increase the homestead property tax exemption in West Virginia from $20,000 to $50,000. It directly affects homeowners and mobile home owners who are at least 65 years old or permanently disabled, as well as younger homeowners who would receive a phased-in exemption starting at a lower value. The amendment would allow the state legislature to set specific rules for how the exemption applies, including a five-year phase-in period for properties appraised before the law takes effect. Additionally, the bill grants the legislature authority to provide property tax relief to tenants of residential or farm property. The measure requires approval by voters at the 2026 general election to become part of the state constitution.
HB 5402 creates a refundable tax credit for West Virginia businesses operating qualified distribution centers. It allows these businesses to claim a dollar-for-dollar credit against state taxes for toll payments exceeding $150,000 made via the West Virginia EZ Pass system on ground transportation of finished, packaged retail goods. The credit requires using RFID Tag Readers or comparable systems approved by the West Virginia Parkways Authority to track eligible tolls. The credit applies to toll payments made in 2026 and future tax years, with the program effective July 1, 2026.
HB 5560 would exempt the first $2,000 of retirement benefits received by retired law enforcement officers under West Virginia's Public Employees Retirement System (PERS) from state income tax. This bill modifies existing tax law to specifically include former law enforcement officers in the current exemption for PERS retirement benefits, which previously applied to teachers and other public employees. The policy change directly affects retired police and firefighters who receive PERS pensions, ensuring their initial $2,000 in annual retirement income is not subject to state taxation. This amendment expands an existing tax exemption to explicitly cover law enforcement retirees, aligning with the bill's stated purpose of providing tax relief for this group.
HB 5399 creates a 10% state tax credit against West Virginia's corporate net income tax for businesses that earn federal carbon sequestration credits (under IRS §45Q) for biochar manufacturing. The credit applies only to new biochar facilities operating in West Virginia after July 1, 2025, and matches the amount of the federal credit earned. It limits the credit to 50% of a business's annual tax liability and allows unused credits to carry forward (but not back before 2026). This directly affects businesses establishing qualifying biochar facilities, aligning state incentives with federal climate-focused manufacturing credits.
SB 1063 creates a new Economic Development Investment Fund in West Virginia's State Treasury to finance job-creating projects, support industry recruitment, fund infrastructure for large industrial users, and leverage private investment. The fund, administered by the Division of Economic Development, can provide loans, grants, or equity but cannot cover government operating costs or salary increases, with no single project receiving more than 25% of the fund balance. Entities receiving funds must sign performance agreements requiring job creation, private investment thresholds, and tax base expansion. The fund must maintain a minimum balance equal to one year of projected commitments and report annually to the Joint Committee on Government and Finance.
SB 1058 would establish Economic Freedom Zones in West Virginia's most distressed census tracts (defined by high unemployment and poverty rates), offering a 50% reduction in corporate and pass-through business income tax rates for all businesses and individuals operating within these zones. The bill mandates regulatory simplification by requiring two existing state rules to be repealed for every new rule in a zone and setting a 30-day deadline for permit approvals (with automatic approval if not met). To maintain fiscal responsibility, it includes a safeguard that would adjust tax rates if revenue loss exceeds 0.5% of state collections, while prohibiting targeted subsidies or preferential treatment for specific businesses. The program would expire in 2035 unless renewed by the legislature.
HB 5635 creates a 50% state tax credit for property owners who rehabilitate vacant or dilapidated residential properties in designated "coalfield" counties. The credit applies to eligible rehabilitation costs and requires properties to be used as workforce housing for educators, healthcare workers, first responders, and public employees. Projects supported by county commissions, housing authorities, or municipal redevelopment agencies receive priority. "Coalfield" counties are defined as those with historical or current economic ties to coal mining, including past or present coal-related industry activity. The bill is currently under review by the House Finance Committee.
This bill exempts capital gains from gold, silver, and cryptocurrency transactions from West Virginia's personal income tax. It directly affects residents who sell these assets at a profit, as the state would no longer tax the gain. The key provision removes net capital gains from "precious metal bullion" (like gold/silver coins/bars) and "cryptocurrency" from taxable income under the state's tax code. This creates a specific tax exemption for these assets, distinct from other investment gains. The policy change would apply to all West Virginia taxpayers with qualifying gains, effective upon enactment.
SB 735 would eliminate West Virginia's corporate net income tax over a four-year period by reducing the tax rate annually until it reaches zero. The bill applies to corporations conducting business in the state, excluding those already exempt under current law. The key mechanism is a scheduled annual reduction in the tax rate, with the tax fully phased out by the end of the four-year period. This change would remove a direct tax on corporate profits, altering the state's primary revenue source for business taxation.
HB 5262 provides a tax credit for commercial building owners in West Virginia who pay for renovations to achieve certification under the U.S. Green Building Council's LEED system or the Green Globes Building Initiative. The credit equals the actual cost of renovations and improvements needed for certification, minus any reimbursements received. Eligible taxpayers (commercial building owners) can apply this credit against corporation net income tax, business franchise tax, or personal income tax, with unused portions carryable for up to three years. This policy directly supports commercial property owners seeking to adopt sustainable building practices through financial incentives.
