HB 2523
Eliminate double taxation on foreign income at the state level
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill aims to prevent double taxation of income earned by West Virginia residents from sources outside of the state. It proposes to allow a credit against West Virginia state income tax for income taxes paid to other U.S. states, the District of Columbia, or foreign countries. The credit is limited to the percentage of West Virginia income subject to tax, and it includes a sunset provision, expiring in 2070. The bill also addresses pass-through entities and clarifies the conditions under which a credit for foreign income taxes can be claimed.
Key provisions
- Allows a credit against West Virginia state income tax for income taxes paid to other states, D.C., or foreign countries.
- The credit is limited to the percentage of West Virginia income subject to tax.
- Includes a sunset provision, expiring in 2070.
- Addresses pass-through entities and clarifies liability for taxes paid by these entities.
- Specifies that a credit for foreign income taxes can only be claimed if double taxation would occur without the credit.
- Excludes credits from jurisdictions that already offer similar credits to West Virginia residents.
Who is affected
- West Virginia Residents
- Individuals with income from other states or foreign countries
- Pass-through entities
- Taxpayers
- The West Virginia Department of Revenue
Notable changes
- Establishes a credit for income taxes paid to other jurisdictions.
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