WEST VIRGINIA LEGISLATURE
2023 REGULAR SESSION
Introduced Senate Bill 438
BY SENATORS CLEMENTS, SWOPE, CHAPMAN, AND
NELSON
[Introduced January 23, 2023; referred to the Committee on Finance]
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1 A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article,
2 designated §11-13MM-1, §11-13MM-2, §11-13MM-3, §11-13MM-4, §11-13MM-5, and
3 §11-13MM-6, all relating to creating the Return to West Virginia Tax Credit Act; providing
4 for a title, findings, and purpose; providing for a non-refundable credit against state
5 personal income taxes; providing a definition; providing for limitations and eligibility
6 requirements of the credit; authorizing legislative rule; authorizing the Tax Commissioner
7 to create forms and require documentation; providing for effective and expiration dates of
8 the credit; and requiring reporting.
Be it enacted by the Legislature of West Virginia:
ARTICLE 13MM. RETURN TO WEST VIRGINIA TAX CREDIT ACT.
§11-13MM-1. Short title.
1 This article may be cited as the Return to West Virginia Tax Credit Act.
§11-13MM-2. Findings and purpose.
1 The Legislature finds that it is an important public policy to encourage former West
2 Virginians to return home and seek employment in West Virginia. West Virginia is enjoying low
3 unemployment rates and seeks the return of West Virginians who have been gone because they,
4 or their family members, felt the need to pursue employment opportunities outside of the state. In
5 furtherance of its findings and as an incentive to return home and work in the state, the purpose
6 of this article is to create a non-refundable credit against state personal income taxes.
§11-13MM-3. Amount and limitation of credit.
1 There is allowed to an eligible taxpayer a non-refundable credit against taxes imposed by
2 §11-21-1 et seq. of this code in the amount $25,000. If the total amount of the credit authorized
3 by this article is not used in any tax year, the unused portion of the credit may be applied to a
4 future tax year to which this credit applies: Provided, That the total amount of the credit claimed
5 by an eligible taxpayer may not exceed $25,000. No carryback to a prior taxable year is allowed
6 for any unused portion of the credit.
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§11-13MM-4. Eligibility for credit; definition.
1 "Eligible taxpayer " as used in this article means an individual in this state who meets the
2 following criteria:
3 (1) The individual resided and was employed in West Virginia for a minimum of 10 years;
4 or the individual was born in West Virginia; and
5 (2) The individual has not been a resident of West Virginia for at least 10 consecutive
6 years preceding the year 2023; and
7 (3) The individual became a West Virginia resident again on or after January 1, 2023.
§11-13MM-5. Legislative rules; authority of the Tax Commissioner.
1 (a) The Tax Commissioner may propose rules for legislative approval in accordance with
2 the provisions of §29A-3-1 et seq. of this code as may be necessary to carry out the purpose of
3 this article.
4 (b) The Tax Commissioner may create forms and require the submission of documentation
5 from any taxpayer who claims entitlement to the credit authorized by this article in order to verify
6 such entitlement.
§11-13MM-6. Effective date and expiration of credit; reporting.
1 (a) The credit authorized in this article may be claimed after December 31, 2023.
2 (b) The credit authorized in this article shall expire and not be authorized or applied for
3 any taxable year after December 31, 2029.
4 (c) On or before July 1, 2024, and annually thereafter for as long as the credit authorized
5 in this article may be claimed, the Tax Commissioner shall provide an annual report in an
6 electronic format to the Joint Committee on Government and Finance setting forth details
7 concerning the utilization of the credit, including the number of taxpayers claiming the credit, the
8 number of taxpayers deemed eligible or ineligible by the Tax Commissioner to receive the credit,
9 benefits realized as a result of the credit, and the annual amount of the credit.
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Statutes affected:
Introduced Version: 11-13MM-1, 11-13MM-2, 11-13MM-3, 11-13MM-4, 11-13MM-5