HB 5432
Relating to establishing disaster repair and recovery effort tax credit for taxpayers subject to the severance and business privilege tax in certain circumstances
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill creates a tax credit for West Virginia taxpayers who pay the severance and business privilege tax and make expenditures for disaster repair and recovery efforts. The credit is designed to incentivize private sector assistance in responding to disasters like hurricanes or floods. Eligible taxpayers can claim a portion of their repair expenses as a credit against their severance tax liability, with unused credits able to be carried forward for up to 10 years. The bill also establishes procedures for applying for and certifying disaster repair projects.
Key provisions
- Creates a disaster repair and recovery effort tax credit for eligible taxpayers.
- The credit can be applied against up to 20% of a taxpayer’s annual severance tax liability.
- Eligible taxpayers must receive certification from the Secretary of the Department of Environmental Protection for their repair and recovery efforts project.
- The Secretary of the Department of Environmental Protection can certify a maximum of $5 million in expenditures for the credit.
- Unused tax credits can be carried forward for up to 10 years.
- The bill allows for the transfer of tax credits to successor businesses.
- Requires taxpayers to maintain records to support their claimed expenditures.
- Establishes a process for rulemaking by the Secretary of the Department of Environmental Protection and the Tax Commissioner.
Who is affected
- Taxpayers subject to the severance and business privilege tax
- Private sector businesses
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