This bill proposes the addition of a new section, 11-21-98, to the Code of West Virginia, establishing a state child tax credit aimed at supporting working families with children. The legislation recognizes the positive impact of the federal child tax credit on reducing child poverty and enhancing early childhood development. It intends to create a permanent and refundable state child tax credit for eligible taxpayers, thereby contributing to the local economy and providing financial relief to families.

Under the new provisions, starting from tax years beginning on or after January 1, 2025, residents who claim a federal child tax credit for an eligible child will be entitled to a refundable credit amounting to 50% of the federal child and dependent care tax credit. Additionally, any credit amount that exceeds the individual's income tax liability will be refunded to them. The bill includes definitions for "eligible child" and "federal child tax credit" to clarify the criteria for eligibility and the basis for the state credit.

Statutes affected:
Introduced Version: 11-21-98