The West Virginia Disaster Repair and Recovery Tax Credit Act establishes a new tax credit for eligible taxpayers who incur expenses related to disaster repair and recovery efforts. This legislation allows taxpayers subject to the severance and business privilege tax to claim a credit of up to $500,000 against their annual severance tax liability for qualified expenditures made in response to disasters, such as hurricanes, floods, and other natural catastrophes. The credit can be applied against up to 20% of the taxpayer's annual severance tax liability and can be carried forward for up to ten years if not fully utilized. Taxpayers must file an application for certification with the Secretary of the Department of Environmental Protection within 72 hours of commencing a project to be eligible for the credit.

Additionally, the Act includes provisions for the transfer of tax credits to successor businesses, ensuring that credits are not lost due to changes in business structure or ownership. The Secretary of the Department of Environmental Protection is tasked with certifying eligible projects and is limited to certifying a total of $5 million in expenditures annually for the credit. The Act also mandates that taxpayers maintain sufficient records to substantiate their claimed expenditures and outlines the rulemaking authority for implementing the provisions of the Act. The credit is effective for tax years beginning on or after January 1, 2026.

Statutes affected:
Introduced Version: 11-13NN-1, 11-13NN-2, 11-13NN-3, 11-13NN-4, 11-13NN-5, 11-13NN-6, 11-13NN-7, 11-13NN-8, 11-13NN-9
Committee Substitute: 11-13NN-1, 11-13NN-2, 11-13NN-3, 11-13NN-4, 11-13NN-5, 11-13NN-6, 11-13NN-7, 11-13NN-8, 11-13NN-9
Enrolled Committee Substitute: 11-13NN-1, 11-13NN-2, 11-13NN-3, 11-13NN-4, 11-13NN-5, 11-13NN-6, 11-13NN-7, 11-13NN-8, 11-13NN-9