FISCAL NOTE
Date Requested: February 12, 2026
Time Requested: 05:24 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4081 |
Introduced |
HB5474 |
|
|---|
| 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 incentive to encourage the continued growth of the outdoor recreation economy in West Virginia to be known as the “Gateway to the Gorge Outdoor Recreation Industry Act.”
The provisions of this bill would create two separate tax credits related to business and employment activity within a large geographic area encompassing parts of Lincoln, Kanawha, Boone, Raleigh, Summers, Fayette, Mercer, Greenbrier, Clay and Nicholas Counties if the activity is engaged in “businesses that facilitate, manufacture or sell products and services for leisure activities that occur outdoors”. The first tax credit equal to 80 percent of the business Taxpayer’s total tax liability applies to any business that either creates five or more jobs associated with the outdoor or recreation industry or makes a $1 million investment on or after July 1, 2026. The business tax credit may apply against corporation net income tax or business and occupation tax. The State business and occupation tax applies only to electric power generators, public utilities and natural gas storage, a group of businesses not closely tied to the outdoor recreation industry. The second tax credit equals 80 percent of the individual Taxpayers total personal income tax liability if that person works in a qualified business within the geographic area. We are unable to quantify the revenue loss associated with these proposed tax credits, but the loss would be highly significant given the lack of stricter guidance for who qualifies for these tax credits and the lack of any tax credit cap other than 80 percent of the Taxpayer’s tax liability for activities both within the geographic area and outside of the geographic area.
Additional administrative costs incurred by the State Tax Division would be $46,150 in FY2027 and $22,500 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 |
46,150 |
22,500 |
| Personal Services |
0 |
22,500 |
22,500 |
| 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):
The provisions of this bill would create two separate tax credits related to business and employment activity within a large geographic area encompassing parts of Lincoln, Kanawha, Boone, Raleigh, Summers, Fayette, Mercer, Greenbrier, Clay and Nicholas Counties if the activity is engaged in “businesses that facilitate, manufacture or sell products and services for leisure activities that occur outdoors”. The first tax credit equal to 80 percent of the business Taxpayer’s total tax liability applies to any business that either creates five or more jobs associated with the outdoor or recreation industry or makes a $1 million investment on or after July 1, 2026. The business tax credit may apply against corporation net income tax or business and occupation tax. The State business and occupation tax applies only to electric power generators, public utilities and natural gas storage, a group of businesses not closely tied to the outdoor recreation industry. The second tax credit equals 80 percent of the individual Taxpayers total personal income tax liability if that person works in a qualified business within the geographic area. We are unable to quantify the revenue loss associated with these proposed tax credits, but the loss would be highly significant given the lack of stricter guidance for who qualifies for these tax credits and the lack of any tax credit cap other than 80 percent of the Taxpayer’s tax liability for activities both within the geographic area and outside of the geographic area.
Additional administrative costs incurred by the State Tax Division would be $46,150 in FY2027 and $22,500 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to create a tax incentive to encourage the continued growth of the outdoor recreation economy in West Virginia to be known as the “Gateway to the Gorge Outdoor Recreation Industry Act.”
The bill cites the Ascend Program and the goal of bringing "remote employees to West Virginia who desire to live in areas that provide... outdoor recreation opportunities". However, the bill defines "Remote Worker" strictly as "any individual full-time or part-time employee of a business in the outdoor recreation industry”. This definition may exclude the very demographic described in the Ascend Program (e.g., a software developer working remotely for a tech firm who moves to WV to take advantage of outdoor recreation rather than participate in it as an employee). It restricts the personal income tax credit solely to people who work for outdoor recreation companies, limiting the scope of the incentive.
The "Outdoor Recreation Industry" is defined to include lists such as "Slacklining," "Bird Watching," and "Shooting". Without tighter NAICS code definitions (similar to the Manufacturing Investment Credit), this could lead to disputes over whether general retailers (e.g., a store selling binoculars or birdseed) qualify as "outdoor recreation" businesses eligible for the credit.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov