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 any 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 specifies 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 clarifies the definition of "low income" for the purpose of refundable credits for low-income senior citizens and addresses the treatment of personal exemptions in light of federal tax law changes that eliminated personal exemptions starting in 2018. Overall, the bill aims to ensure that West Virginia's tax laws remain consistent with federal regulations while providing specific provisions for medical savings accounts and senior citizen tax credits.

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