The bill aims to amend and reenact section 11-21-9 of the West Virginia Code, which pertains to the definitions of terms used in the West Virginia Personal Income Tax Act. Key changes include updating the reference year for amendments to the laws of the United States from December 31, 2022, to December 31, 2023, and adjusting the effective date for these amendments from January 1, 2024, to January 1, 2025. This ensures that any changes made to federal income tax laws after December 31, 2023, but before January 1, 2025, will be considered in determining state taxes, while prohibiting the effect of any amendments made after January 1, 2025.

Additionally, the bill clarifies the treatment of medical savings accounts and the definition of "surtax" related to 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 in relation to property tax paid on their homesteads, aligning it with federal poverty guidelines. Overall, the bill seeks to modernize the state's tax code in line with federal updates and provide clarity on specific tax-related terms.

Statutes affected:
Introduced Version: 11-21-9