This bill proposes to amend the Code of West Virginia by repealing the existing non-refundable child and dependent care credit (Section 11-21-26) and establishing a new refundable child tax credit (Section 11-21-98). The new legislation aims to support working families with children by providing a refundable credit of $1,000 for eligible residents who claim a federal child tax credit for qualifying children on their federal tax returns. The bill emphasizes the positive impact of the federal child tax credit on reducing child poverty and supporting local economies, and it seeks to create a permanent state-level credit to further these goals.

The new section defines key terms, including "eligible child" and "federal child tax credit," and outlines that any amount of the credit exceeding the individual's income tax liability will be refunded to the taxpayer. This initiative is intended to enhance financial support for families in West Virginia, thereby contributing to the overall economic well-being of the state.

Statutes affected:
Introduced Version: 11-21-98, 11-21-26