FISCAL NOTE
Date Requested: February 17, 2026
Time Requested: 01:55 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4045 |
Introduced |
HB5668 |
|
|---|
| CBD Subject: |
Economic Development |
|---|
|
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 the Central West Virginia Economic Development and Rural Revitalization Act.
According to our interpretation, effective July 1, 2026, a small business located within central West Virginia would be eligible for an investment tax credit and a small business job creation tax credit. The central West Virginia region includes the counties of Webster, Clay, Braxton, Roane, Calhoun, Wirt, Lewis, and Gilmer. This proposed tax credits offset both the Personal Income Tax and Corporation Net Income Tax. The investment credit is equivalent to 25 percent of the qualified investment. The qualified investment is determined by the Department of Commerce and the State Tax Division and must be in a business or facility located within the Central West Virginia region. The proposed Small Business Job Creation Tax Credit would allow a credit of up to $3,000 per new full-time job created. Based on data from Workforce West Virginia, Braxton, Lewis, and Gilmer counties gained between 40 to 100 jobs between December 2024 and December 2025, while the remaining five counties lost between 10 to 270 jobs during this period. The total Central West Virginia region lost 170 jobs within the past year, despite gains in three counties.
The bill includes two separate tax credits. The tax credit of $3,000 per new job created would result in a minimal loss to the General Revenue Fund. The 25 percent investment tax credit would result in a revenue loss of more significance given that investment is not defined in the bill and would likely include at a minimum all capital investment, including normal costs of maintaining a business. Most of these investments would already be occurring without the added tax credit benefit. The total revenue loss is not readily quantifiable but could be significant.
Additional administrative costs incurred by the State Tax Division would be $22,000 in FY2026, $12,650 in FY2027, and $11,000 per year in FY2028 and thereafter.
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 |
22,000 |
12,650 |
11,000 |
| Personal Services |
0 |
11,000 |
11,000 |
| Current Expenses |
0 |
1,650 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
22,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, effective July 1, 2026, a small business located within central West Virginia would be eligible for an investment tax credit and a small business job creation tax credit. The central West Virginia region includes the counties of Webster, Clay, Braxton, Roane, Calhoun, Wirt, Lewis, and Gilmer. This proposed tax credits offset both the Personal Income Tax and Corporation Net Income Tax. The investment credit is equivalent to 25 percent of the qualified investment. The qualified investment is determined by the Department of Commerce and the State Tax Division and must be in a business or facility located within the Central West Virginia region. The proposed Small Business Job Creation Tax Credit would allow a credit of up to $3,000 per new full-time job created. Based on data from Workforce West Virginia, Braxton, Lewis, and Gilmer counties gained between 40 to 100 jobs between December 2024 and December 2025, while the remaining five counties lost between 10 to 270 jobs during this period. The total Central West Virginia region lost 170 jobs within the past year, despite gains in three counties.
The bill includes two separate tax credits. The tax credit of $3,000 per new job created would result in a minimal loss to the General Revenue Fund. The 25 percent investment tax credit would result in a revenue loss of more significance given that investment is not defined in the bill and would likely include at a minimum all capital investment, including normal costs of maintaining a business. Most of these investments would already be occurring without the added tax credit benefit. The total revenue loss is not readily quantifiable but could be significant.
Additional administrative costs incurred by the State Tax Division would be $22,000 in FY2026, $12,650 in FY2027, and $11,000 per year in FY2028 and thereafter.
Memorandum
The stated purpose of this bill is to create the Central West Virginia Economic Development and Rural Revitalization Act.
The titling hierarchy in ยง5B-12-3 is incorrect as the section denotes the definitions as subdivisions, e.g. (1), (2), (3), etc., when there are no subsections.
This bill also creates the Small Business Job Creation Tax Credit. This proposed credit is problematic because the bill does not specify which taxes the credit may be taken against.
Giving rulemaking authority to agencies other than the Tax Division regarding tax credits may be problematic and cause administrative difficulties. The effective date of July 1, 2026, may cause administrative difficulty as the State Tax Division and the Department of Commerce will need to update forms and create rules to accommodate the new credits.
Person submitting Fiscal Note: Peter Shirley
Email Address: RADfiscal@wv.gov