The bill aims to amend and reenact 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 to align with changes in federal tax law. Notably, the bill changes the effective date for amendments to the laws of the United States from December 31, 2022, to December 31, 2023, and from January 1, 2024, to January 1, 2025. This means that any amendments made to federal tax laws after December 31, 2023, but before January 1, 2025, will be considered for state tax purposes, while those made on or after January 1, 2025, will not be applicable.

Additionally, the bill clarifies the treatment of medical savings accounts and the definition of "surtax" related to withdrawals from these accounts. It also specifies that the amendments will be retroactive to the extent allowed under federal law, preserving the law in effect for taxable years prior to January 1, 2025. Furthermore, it defines "low income" for the purpose of refundable credits for low-income senior citizens based on federal poverty guidelines. Overall, the bill seeks to ensure that West Virginia's tax laws remain consistent with federal regulations and provide clarity on specific terms and provisions.

Statutes affected:
Introduced Version: 11-21-9