FISCAL NOTE
Date Requested: February 17, 2026
Time Requested: 01:34 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2679 |
Introduced |
HB5635 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to create a tax credit for rehabilitation of vacant or dilapidated residential properties in coalfield counties.
This bill would establish a tax credit for 50 percent of the taxpayer’s eligible contribution to the rehabilitation of vacant or dilapidated residential properties in coalfield counties. Coalfield counties are defined as any that have historically had coal mining within its boundaries; have economically benefitted, or presently benefit, from the coal mining industry; have had economic activity related to the coal mining industry; or have otherwise been, or will be, significantly affected by the coal mining industry.
The bill does not define the tax type against which the credit can be applied. According to the West Virginia Department of Environmental Protection, there were nearly 1,300 dilapidated properties in the state as of January 31, 2024. Due to the broad definition of “coalfield counties,” we can reasonably assume that every county in West Virginia may qualify. Beyond the approximate number of dilapidated properties, there is little data to reasonably estimate the revenue impact from this bill.
Additional administrative costs to the State Tax Division would be $34,650 in FY2027 and $11,000 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
34,650 |
11,000 |
| Personal Services |
0 |
11,000 |
11,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
22,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill would establish a tax credit for 50 percent of the taxpayer’s eligible contribution to the rehabilitation of vacant or dilapidated residential properties in coalfield counties. Coalfield counties are defined as any that have historically had coal mining within its boundaries; have economically benefitted, or presently benefit, from the coal mining industry; have had economic activity related to the coal mining industry; or have otherwise been, or will be, significantly affected by the coal mining industry.
The bill does not define the tax type against which the credit can be applied. According to the West Virginia Department of Environmental Protection, there were nearly 1,300 dilapidated properties in the state as of January 31, 2024. Due to the broad definition of “coalfield counties,” we can reasonably assume that every county in West Virginia may qualify. Beyond the approximate number of dilapidated properties, there is little data to reasonably estimate the revenue impact from this bill.
Additional administrative costs to the State Tax Division would be $34,650 in FY2027 and $11,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to create a tax credit for rehabilitation of vacant or dilapidated residential properties in coalfield counties.
It is unclear against what tax this credit can be applied. Further, it appears to overlap the rehabilitated buildings tax credit to some degree, and it is unclear whether the taxpayer can claim both. The bill is silent as to whether the credit is refundable; whether it is subject to transfer, carry back, or carry forward; whether it can be recaptured; how it is claimed; and how pass-through entities are treated if they earn this credit. “Eligible contribution” is not defined.
Subsection (d) defines “coalfield.”
(d) For purposes of this section, the term “coalfield” means any county in the state of West Virginia that has:
(1) Historically had coal mining within its boundaries;
(2) Economically benefitted, or presently benefits, from the coal mining industry within its boundaries;
(3) Historically had economic activity ancillary, or related, to the coal mining industry within its boundaries; or
(4) Otherwise been, or will be, significantly affected by the coal mining industry.
This definition is very broad; almost any county in West Virginia would qualify.
Person submitting Fiscal Note: Peter Shirley
Email Address: RADfiscal@wv.gov