Bill > SB243

This bill, titled the West Virginia Disaster Repair and Recovery Tax Credit Act, establishes a new tax credit for businesses that are subject to West Virginia's severance tax (a tax on the extraction of natural resources) and business privilege tax, and that incur costs for disaster repair and recovery efforts. The Legislature finds that encouraging private sector involvement in repairing public property and infrastructure after a disaster, by providing equipment, materials, services, and labor, is in the public interest and helps communities recover more quickly, thus promoting economic opportunity and general welfare. To qualify for this credit, a business must be an "eligible taxpayer," meaning they make "qualified expenditures for disaster repair and recovery efforts" and are subject to the severance tax. "Disaster" is defined broadly to include natural catastrophes like hurricanes, floods, and fires. "Expenditures for repair and recovery efforts" cover a wide range of activities, including debris removal, preparation of land for construction, and the actual repair or installation of public property and infrastructure, as well as the cost of machinery and equipment used in these efforts, provided these costs do not exceed fair market value. Before undertaking any repair or recovery project, an eligible taxpayer must apply for and receive certification from the Secretary of the Department of Environmental Protection, detailing the work, timeline, costs, and requested credit amount. The Secretary is authorized to certify no more than $5 million in expenditures annually for this credit, and will stop accepting applications once this limit is reached. The credit amount is capped at $500,000 per disaster, and can be used to offset up to 20% of a taxpayer's annual severance tax liability, claimed monthly. Any unused credit can be carried forward for up to nine years after the year it was first available, after which it is forfeited. The credit can also be transferred to a successor business if the original business is acquired or its form changes, as long as the successor continues to operate in the state. The bill also mandates that the Secretary of the Department of Environmental Protection and the Tax Commissioner develop rules to implement these provisions, and the credit will be effective for tax years beginning on or after January 1, 2026.

Budget and Finance, Transportation and Infrastructure

http://www.wvlegislature.gov/Bill_Status/Bills_history.cfm?input=243&year=2026&sessiontype=RS&btype=bill