Bill > HB5084

This bill proposes to eliminate the existing non-refundable child tax credit and establish a new, refundable child tax credit for West Virginia taxpayers. A "refundable" credit means that if the credit amount is more than the taxes owed, the taxpayer will receive the difference back as a refund, rather than just reducing their tax liability to zero. The bill's stated purpose is to support working families with children, reduce child poverty, and boost the state's economy, mirroring the positive impacts observed from the federal child tax credit. An "eligible child" is defined as a child who qualifies for the federal child tax credit, and the "federal child tax credit" refers to the credit allowed under Section 24 of the Internal Revenue Code, including its refundable portion known as the "additional child credit." Starting with tax years beginning on or after January 1, 2026, eligible West Virginia residents who claim the federal child tax credit for an eligible child will receive a $1,000 state tax credit, and any amount of this credit that exceeds their state income tax liability will be refunded to them.

Budget and Finance

http://www.wvlegislature.gov/Bill_Status/Bills_history.cfm?input=5084&year=2026&sessiontype=RS&btype=bill