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WV HB5432

WV HB5432
Relating to establishing disaster repair and recovery effort tax credit for taxpayers subject to the severance and business privilege tax in certain circumstances


summary

Introduced
02/11/2026
In Committee
02/11/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

The purpose of this bill is to create a credit against the severance tax to encourage private companies to assist with repair and recovery efforts following disasters in this state. The bill limits the total amount of repair and recovery effort credits which can be certified by the Secretary of the Department of Environmental Protection. The bill requires the Secretary of the Department of Environmental Protection and the Tax Commissioner to propose legislative rules and emergency legislative rules for promulgation to implement the provisions of the bill The bill will increase economic opportunity in this state. The bill authorizes the claiming of the credits. Finally, the bill provides for an effective date.

AI Summary

This bill establishes the "West Virginia Disaster Repair and Recovery Tax Credit Act" to incentivize private companies, specifically those subject to the severance and business privilege tax (a tax on the extraction and sale of natural resources), to help with disaster recovery efforts. It allows eligible taxpayers who incur costs for repairing public property and infrastructure after a disaster, including labor, materials, and equipment, to claim a tax credit against their severance tax liability. The credit amount is based on certified expenditures, but can only offset up to 20% of a taxpayer's annual severance tax, with any unused credit allowed to be carried forward for up to 10 years. The Secretary of the Department of Environmental Protection is authorized to certify these projects and has a cap of $5 million in total expenditures that can be approved for the credit annually, and will stop accepting applications once this limit is reached. The bill also requires the Secretary and the Tax Commissioner to create rules to implement these provisions, and the credit will be available for tax years beginning on or after January 1, 2026.

Committee Categories

Transportation and Infrastructure

Sponsors (1)

Last Action

To House Energy and Public Works (on 02/11/2026)

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