FISCAL NOTE
Date Requested: February 12, 2026
Time Requested: 04:51 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3213 |
Comm. Sub. |
HB4784 |
|
|---|
| 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.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to extend Qualified Opportunity Zones until July 1, 2032.
This bill would change the sunset date from the tax periods that begin on and after January 1, 2024 to those taxable years which begin on and after July 1, 2032.
The opportunity zone program was created in 2019 and ceased in 2024. However, this bill would extend the sunset date. For periods ending December 31, 2020, through December 31, 2024, there were $7.8 million of qualified opportunity zone income modifications for pass through entities and $1.6 million for the personal income tax for an average annual revenue decrease of approximately $0.5 million at current tax rates.
Additional administrative costs to the State Tax Division would be $16,500 in FY2026.
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 |
16,500 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
16,500 |
0 |
0 |
| 2. Estimated Total Revenues |
-500,000 |
-500,000 |
-500,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
This bill would change the sunset date from the tax periods that begin on and after January 1, 2024 to those taxable years which begin on and after July 1, 2032.
The opportunity zone program was created in 2019 and ceased in 2024. However, this bill would extend the sunset date. For periods ending December 31, 2020, through December 31, 2024, there were $7.8 million of qualified opportunity zone income modifications for pass through entities and $1.6 million for the personal income tax for an average annual revenue decrease of approximately $0.5 million at current tax rates.
Additional administrative costs to the State Tax Division would be $16,500 in FY2026.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
The stated purpose of this bill is to extend Qualified Opportunity Zones until July 1, 2032.
By deleting the January 1, 2024 date, the bill creates uncertainty about whether the decreasing modification is retroactively revived for tax years beginning on and after January 1, 2024.
This bill only changes the sunset date for the modification found in W. Va. Code §11-24-6b. The bill does not change the sunset date for the similar reducing modification found in current W. Va. Code §11-21-12I.
Person submitting Fiscal Note: Peter Shirley
Email Address: radfiscal@wv.gov