SB 624
Extending sunset date for modification to personal and corporate income tax for qualified businesses
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill extends the availability of a tax modification for West Virginia businesses located in qualified opportunity zones. Specifically, it extends the sunset date for a reduction in federal adjusted gross income for individuals and partners, and a reduction in federal taxable income for corporations, that is tied to income generated by these businesses. The modification is available for newly registered businesses established between January 1, 2019, and January 1, 2024, and applies for a 10-year period, provided the business continues to meet eligibility requirements.
Key provisions
- Extends the sunset date for the tax modification for qualified opportunity zone businesses.
- Allows individuals and partners to deduct a portion of their income derived from qualified opportunity zone businesses from their federal adjusted gross income.
- Allows corporations to deduct a portion of their income derived from qualified opportunity zone businesses from their federal taxable income.
- Defines eligibility criteria, including the business’s registration date and location within a qualified opportunity zone.
- The modification applies for a 10-year period, starting with the first year the business qualifies as a qualified opportunity zone business.
- Provides for rules and interpretive guidelines for administering the modification.
- Defines key terms such as ‘Qualified Opportunity Zone Business’ and ‘Qualified Opportunity Zone’ referencing the Internal Revenue Code.
- Specifies that the modification will terminate on the date federal tax relief for qualified opportunity zones is no longer available.
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