This bill proposes to amend the Code of West Virginia by introducing a new section, 11-21-98, which establishes a refundable child tax credit for eligible taxpayers. The legislation aims to support working families with children, reduce child poverty, and positively impact the local economy and early childhood development. The bill defines "eligible child" in accordance with the federal child tax credit and specifies that for tax years beginning on or after January 1, 2025, residents who claim a federal child tax credit for an eligible child will receive a refundable credit of $1,000 against their state tax liability.

Additionally, the bill repeals the existing non-refundable child and dependent care credit, thereby streamlining the tax benefits available to families. The new refundable credit allows individuals to receive a refund for any amount exceeding their state income tax liability, ensuring that families benefit directly from the credit even if their tax owed is less than the credit amount. This change reflects the Legislature's intent to enhance financial support for families in West Virginia.

Statutes affected:
Introduced Version: 11-21-98, 61-8B-16