The proposed bill aims to establish a new tax credit in West Virginia, known as the "West Virginia Disaster Repair and Recovery Tax Credit Act," to incentivize private sector involvement in disaster repair and recovery efforts. It introduces a series of provisions that define eligible taxpayers, outline the types of expenditures that qualify for the credit, and set the maximum amount of credit that can be certified by the Secretary of the Department of Environmental Protection. The credit is designed to cover up to 20% of a taxpayer's annual severance tax liability, with unused credits able to be carried forward for up to ten years. The bill also stipulates that taxpayers must apply for certification of their repair and recovery projects before claiming the credit.

Additionally, the bill includes provisions for the transfer of tax credits to successor businesses, ensuring that credits are not lost due to changes in business structure or ownership. It mandates that taxpayers maintain adequate records to substantiate their claims and requires the Secretary of the Department of Environmental Protection and the Tax Commissioner to develop rules for implementing the credit. The effective date for the credit is set for tax years beginning on or after January 1, 2026. Overall, the bill seeks to promote economic recovery and community resilience in the aftermath of disasters by encouraging private investment in repair and recovery efforts.

Statutes affected:
Introduced Version: 11-13NN-1, 11-13NN-2, 11-13NN-3, 11-13NN-4, 11-13NN-5, 11-13NN-6, 11-13NN-7, 11-13NN-8, 11-13NN-9