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 this credit is applicable only when taxpayers can demonstrate to the Tax Commissioner that double taxation will occur on their foreign income included in their federal adjusted gross income. Furthermore, the bill includes a sunset provision, stating that the credit for foreign income tax will be effective until July 1, 2070.

Key changes in the bill include the insertion of language that allows for credits on foreign income taxes and the deletion of certain phrases to clarify the conditions under which these credits can be claimed. The bill also modifies the limitations on the credit, ensuring it does not reduce the tax liability below what would be owed if foreign income were excluded from West Virginia income. Overall, the legislation aims to provide relief to residents who earn income abroad, while also establishing a clear timeline for the credit's expiration.

Statutes affected:
Introduced Version: 11-21-20