Bill > SB169

This bill establishes a new state tax credit for West Virginia residents who claim a childcare expenses credit on their federal tax return, beginning in tax year 2027. The amount of this state credit will be a percentage of the federal credit, with higher percentages for lower federal adjusted gross incomes: 50% for incomes up to $30,000, 30% for incomes between $30,001 and $45,000, and 20% for incomes between $45,001 and $65,000. Individuals with a federal adjusted gross income of $65,000 or more will not be eligible for this credit. If the state credit exceeds the amount of income tax owed, the unused portion will be refunded to the taxpayer rather than being carried forward to future tax years. This credit is generally not available to those receiving childcare assistance from the Department of Health and Human Resources, unless it's for out-of-pocket expenses that qualify for the federal credit. The bill also clarifies that the "federal childcare tax credit" refers to IRS Form 2441, and for the purpose of this state credit and any refund, the dependent child must be under 13 years old by the end of the tax year.

Health and Social Services

http://www.wvlegislature.gov/Bill_Status/Bills_history.cfm?input=169&year=2026&sessiontype=RS&btype=bill