This bill amends the personal income tax provisions in West Virginia, specifically targeting the alleviation of double taxation on foreign income. It introduces a credit for income tax paid to foreign countries, in addition to existing provisions for taxes paid to other U.S. states and the District of Columbia. The bill specifies that a resident taxpayer is allowed a credit for income tax paid to a foreign country, provided they can demonstrate to the Tax Commissioner that double taxation will occur on their foreign income included in their federal adjusted gross income. The bill also includes a sunset provision, stating that this credit will be effective until July 1, 2070.

In terms of legal language changes, the bill replaces the phrase "shall be" with "is" in the context of allowing a credit for taxes paid, and modifies the limitations on the credit to indicate that it "may not exceed" a certain percentage of the tax due. Additionally, it clarifies that no credit will be allowed for taxes from jurisdictions that provide a similar credit against West Virginia taxes. The bill aims to ensure that West Virginia residents are not unfairly taxed on income earned abroad, while also establishing a clear timeline for the credit's expiration.

Statutes affected:
Introduced Version: 11-21-20