The bill amends the Code of West Virginia to establish a framework for voluntary portable benefit accounts aimed at supporting independent contractors. It introduces new sections and articles that define key terms, outline the types of contributions allowed, and specify the tax modifications related to these accounts. Specifically, it allows West Virginia taxpayers to subtract contributions made to portable benefit plans from their federal adjusted gross income for personal income tax and corporate net income tax purposes, effective for taxable years beginning on or after January 1, 2026.

Additionally, the bill emphasizes that contributions to these portable benefit accounts cannot be used to determine a worker's employment classification, thereby protecting independent contractors from being reclassified as employees based on their participation in these benefit plans. The legislation also authorizes the Commissioner of Labor to propose rules to ensure the proper administration of these accounts, including safeguarding contributions for the benefit of independent contractors. Overall, the bill aims to enhance financial stability for independent contractors by providing them with access to affordable benefits while maintaining their independent status.

Statutes affected:
Introduced Version: 31A-10-1, 31A-10-2, 31A-10-3
Committee Substitute: 11-21-12o, 11-24-6d, 33-64-1, 33-64-2, 33-64-3, 33-64-4, 33-64-5
Engrossed Committee Substitute: 11-21-12o, 11-24-6d, 33-64-1, 33-64-2, 33-64-3, 33-64-4, 33-64-5
Enrolled Committee Substitute: 11-21-12o, 11-24-6d, 21-18-1, 21-18-2, 21-18-3, 21-18-4, 21-18-5