The bill amends and reenacts section 11-21-9 of the West Virginia Code, which pertains to the definitions and terms used in the state's Personal Income Tax Act. It clarifies that terms used in this article will have the same meanings as those in the federal income tax laws, specifically referencing the Internal Revenue Code of 1986 and any amendments made to it. Notably, the bill stipulates that any amendments to federal laws made after December 31, 2023, and before January 1, 2025, will be considered for state tax purposes, while any changes made on or after January 1, 2025, will not be recognized.

Additionally, the bill addresses specific provisions regarding medical savings accounts, defining "taxable trust" and detailing the surtax on withdrawals from these accounts. It also establishes that the amendments made in 2025 are retroactive to the extent permitted by federal law, preserving the previous law for taxable years before January 1, 2025. Furthermore, it clarifies the definition of "low income" for the purpose of refundable credits for low-income senior citizens and specifies how exemptions are to be interpreted in light of changes to federal tax law regarding personal exemptions.

Statutes affected:
Introduced Version: 11-21-9
Engrossed Version: 11-21-9
Enrolled Version: 11-21-9