This bill proposes the addition of a new section, 11-21-98, to the Code of West Virginia, establishing a state child tax credit aimed at supporting working families with children. The Legislature recognizes the positive impact of the federal child tax credit on reducing child poverty and enhancing early childhood development. The intent is to create a permanent and refundable state child tax credit for eligible taxpayers, thereby contributing to the local economy and providing financial relief to families.

The bill defines "eligible child" in accordance with the federal child tax credit criteria and specifies that for tax years starting January 1, 2025, residents who claim a federal child tax credit for an eligible child will receive a refundable credit equal to 50% of the federal child and dependent care tax credit. Additionally, any amount of the credit that exceeds the individual's income tax liability will be refunded to them. This initiative aims to provide significant financial support to families in West Virginia.

Statutes affected:
Introduced Version: 11-21-98