2026 Regular Session
SB 735
Phasing out corporate net income tax over 4 years
In Committee
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill proposes to gradually reduce the corporate net income tax rate in West Virginia over a four-year period. Starting in 2027, the tax rate will be reduced by 25% annually, continuing down to 75% by 2029. After 2029, the corporate net income tax will be eliminated.
Key provisions
- The corporate net income tax rate will be phased out over four years.
- The rate will be reduced by 25% in 2027.
- The rate will be reduced by 50% in 2028.
- The rate will be reduced by 75% in 2029.
- After 2029, the corporate net income tax will be eliminated.
- The reduction in tax is contingent on the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund - Part B reaching a certain threshold.
Who is affected
- Corporations
- Businesses operating in West Virginia
- Investors in West Virginia
Notable changes
- The bill significantly reduces the corporate income tax rate over a four-year period.
- The reduction is tied to the state's revenue fund balance, potentially allowing for adjustments based on financial conditions.
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