The bill amends and reenacts section 11-21-9 of the West Virginia Code, which pertains to the Personal Income Tax Act. It updates the definition of federal adjusted gross income and other related terms, aligning them with the Internal Revenue Code of 1986 and subsequent amendments. Notably, the bill stipulates that any amendments to federal tax laws made after December 31, 2023, and before January 1, 2025, will be considered for state tax purposes, while changes made on or after January 1, 2025, will not be recognized. Additionally, the bill clarifies the treatment of medical savings accounts and defines the term "surtax" in relation to these accounts.

Furthermore, the bill establishes that the amendments are retroactive to the extent permitted by federal law, preserving the tax laws in effect for taxable years prior to January 1, 2025. It also specifies that for low-income senior citizens claiming a refundable credit for property tax on their homestead, the term "laws of the United States" includes the definition of "low income" as per state guidelines. Lastly, it clarifies that references to personal exemptions in the context of federal income tax will reflect the status prior to the elimination of personal exemptions for tax years beginning on or after January 1, 2018.

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