The bill amends West Virginia's Code to extend the modification that reduces federal taxable income for qualified opportunity zone businesses. It specifies that businesses must be newly registered in West Virginia between January 1, 2019, and January 1, 2033, to qualify for this modification. The bill defines key terms such as "Newly registered business," "Reorganization of an existing business," "Qualified Opportunity Zone Business," and "Qualified Opportunity Zone," all of which are tied to federal law under 26 U.S.C. 1400Z. The modification allows for a subtraction from federal taxable income for net income derived from these qualified businesses for a period of ten years, starting from the first full taxable year in which the business qualifies.

Additionally, the bill outlines that the modification will be effective for taxable years beginning on or after January 1, 2019, and will terminate for taxable years starting on or after January 1, 2033, unless terminated sooner by law. However, businesses that have already qualified will retain their entitlement for the remainder of the ten-year period, provided they comply with the requirements. Importantly, the amendment will have a retrospective effective date for taxable years beginning on or after January 1, 2024, allowing businesses that meet the criteria to benefit from the modification even if they were established after the initial effective date.

Statutes affected:
Introduced Version: 11-24-6b
Committee Substitute: 11-24-6b
Committee Substitute for the Committee Substitute: 11-24-6b
Engrossed Committee Substitute for the Committee Substitute: 11-24-6b
Enrolled Version: 11-24-6b