The bill amends and reenacts section 11-21-9 of the West Virginia Code, which pertains to the definitions and terms used in the West Virginia Personal Income Tax Act. It updates the meaning of federal adjusted gross income and other related terms to align with the Internal Revenue Code of 1986, as amended. Notably, the bill specifies that all amendments to federal laws made between December 31, 2023, and January 1, 2025, will be considered for state tax purposes, while any amendments made after January 1, 2025, will not be recognized. Additionally, it clarifies that employer contributions to medical savings accounts are not considered wages for withholding purposes and defines the term "surtax" in relation to medical savings account withdrawals.

Furthermore, the bill establishes that the amendments made in 2025 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 "laws of the United States" in relation to refundable credits for low-income senior citizens and specifies how exemptions are to be interpreted for tax years beginning on or after January 1, 2018, in light of changes to federal tax law.

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