The proposed bill aims to establish a new tax credit in West Virginia, known as the "West Virginia Disaster Repair and Recovery Tax Credit Act," to incentivize private sector involvement in disaster repair and recovery efforts. It introduces a series of provisions under a new article in the state code, which includes definitions of key terms, the amount of credit available, and the application process for eligible taxpayers who incur qualified expenditures related to disaster recovery. The credit is applicable against the severance tax liability and can be carried forward for up to ten years if not fully utilized. The bill also stipulates that no credit can be claimed without prior certification from the Secretary of the Department of Environmental Protection.

Additionally, the bill outlines the procedures for applying for the tax credit, including the requirement for a detailed project description and cost breakdown. It limits the total amount of credits that can be certified to $5 million and allows for the transfer of credits to successor businesses under certain conditions. The Secretary of the Department of Environmental Protection and the Tax Commissioner are tasked with creating rules to implement the provisions of the bill, which is set to take effect for tax years beginning January 1, 2026. Overall, the legislation seeks to promote economic recovery and community resilience in the aftermath of disasters by encouraging private investment in repair efforts.

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