HB 4191 — Relating to providing child care generally

WEST VIRGINIA LEGISLATURE REGULAR SESSION ENGROSSEDENROLLED Committee Substitute for House Bill 4191 ByBYD DelegatesELEGATESFEHRENBACHER Fehrenbacher,, Hall,ALL, Funkhouser,UNKHOUSER, Hott,HOTT,AND and G.

HowellOWELL [Originating[Passed inMarch the13, Committee2026; on Finance, February 26, 2026] Eng CS for HB 4191 A BILL to amend and reenact §11-21-97, §11-24-44 and §49-2-121 of the Code of West Virginia, 1931, as amended;

andin toeffect amendJuly the1, code2026] byEnr addingCS twofor newHB sections,4191 designatedAN §49-2-ACT 113ato amend and §49-2-1101,reenact all§11-21-97, relating§11-24-44 toand providing§49-2-121 childof carethe generally;Code of West Virginia, 1931, as amended;

and to amend the code by adding two new sections, designated §49- 2-113a and §49-2-1101, all relating to providing child care generally;

(3) “Department“Division” Division” or “Tax Department Division” means the West Virginia State Tax Department Division.

An employer sponsored child-care facility may 1Enr Eng CS for HB 4191 be located anywhere within the state of West Virginia and shall not be subject to proximity or employee usage thresholds.

(6) (7) “Premises of the employer” refers to any location within the State of West Virginia and located on the workplace premises of the employer providing the child care or one of the employers providing the child care in the event that the child care property is owned jointly or severally by the taxpayer and one or more unaffiliated employers:

(7) (8) “Qualified child-care property” means all real property, other than land, and tangible personal property purchased or acquired on or after July 1, 2022, or which property is first placed in service on or after July 1, 2022, for use exclusively in the construction, expansion, improvement, or operation of an employer provided child-care facility, but only if:

(8) (9) “Recapture amount” means, with respect to property as to which a recapture event has occurred, an amount equal to the applicable recapture percentage of the aggregate credits 2Enr Eng CS for HB 4191 claimed under subsection (d) of this section for all taxable years preceding the recapture year, whether or not such credits were used.

(9) (10) ”Recapture event” means any disposition of qualified child-care property by the taxpayer, or any other event or circumstance under which property ceases to be qualified child- care property with respect to the taxpayer, except for:

(10) (11) “Recapture percentage” refers to the applicable percentage set forth in the following table:

Five full years after the qualified child-care property is placed in service .......................................................100 The sixth full year after the qualified child-care property is placed in service ........................................................90 The seventh full year after the qualified child-care property is placed in service .....................................................80 The eighth full year after the qualified child-care property is placed in service ........................................................70 The ninth full year after the qualified child-care property is placed in service ........................................................60 The tenth full year after the qualified child-care property is 3Enr Eng CS for HB 4191 placed in service ........................................................50 The eleventh full year after the qualified child-care property is placed in service .....................................................40 The twelfth full year after the qualified child-care property is placed in service .....................................................30 The thirteenth full year after the qualified child-care property is placed in service ............................................20 The fourteenth full year after the qualified child-care property is placed in service ............................................10 Any period after the close of the fourteenth full year after the qualified child-care property is placed in service ....................0 (11) (12) “Recapture year” means the taxable year in which a recapture event occurs with respect to qualified child-care property.

The sale, merger, acquisition, 4Enr Eng CS for HB 4191 or bankruptcy of any taxpayer shall not create new eligibility for the credit in any succeeding taxpayer;

5Enr Eng CS for HB 4191 (1) The credit otherwise allowable under subsection (b) of this section with respect to such property for the recapture year and all subsequent taxable years shall be reduced by the applicable recapture percentage;

and 6Enr Eng CS for HB 4191 (3) The employer shall certify to the department division the names of the employees, the name of the child-care provider, and such other information as may be required by the department division to ensure that credits are granted only to employers who provide or sponsor approved child care pursuant to this section.

(3) “Department“Division” Division” or “Tax Department Division” means the West Virginia State Tax Department Division.

An employer sponsored child-care facility may 7Enr Eng CS for HB 4191 be located anywhere within the state of West Virginia and shall not be subject to proximity or employee usage thresholds.

(6) (7) “Premises of the employer” refers to any location within the State of West Virginia and located on the workplace premises of the employer providing the child care or one of the employers providing the child care in the event that the child-care property is owned jointly or severally by the taxpayer and one or more unaffiliated employers:

(7) (8) “Qualified child-care property” means all real property, other than land, and tangible personal property purchased or acquired on or after July 1, 2022, or which property is first placed in service on or after July 1, 2022, for use exclusively in the construction, expansion, improvement, or operation of an employer provided child-care facility, but only if:

(8) (9) “Recapture amount” means, with respect to property as to which a recapture event has occurred, an amount equal to the applicable recapture percentage of the aggregate credits 8Enr Eng CS for HB 4191 claimed under subsection (d) of this section for all taxable years preceding the recapture year, whether or not such credits were used.

(9) (10) ”Recapture event” refers to any disposition of qualified child-care property by the taxpayer, or any other event or circumstance under which property ceases to be qualified child- care property with respect to the taxpayer, except for:

(10) (11) “Recapture percentage” refers to the applicable percentage set forth in the following table:

Five full years after the qualified child-care property is placed in service .......................................................100 The sixth full year after the qualified child-care property is placed in service ........................................................90 The seventh full year after the qualified child-care property is placed in service .....................................................80 The eighth full year after the qualified child-care property is placed in service ........................................................70 The ninth full year after the qualified child-care property is placed in service ........................................................60 The tenth full year after the qualified child-care property is 9Enr Eng CS for HB 4191 placed in service ........................................................50 The eleventh full year after the qualified child-care property is placed in service .....................................................40 The twelfth full year after the qualified child-care property is placed in service .....................................................30 The thirteenth full year after the qualified child-care property is placed in service ............................................20 The fourteenth full year after the qualified child-care property is placed in service ............................................10 Any period after the close of the fourteenth full year after the qualified child-care property is placed in service ....................0 (11) (12) “Recapture year” means the taxable year in which a recapture event occurs with respect to qualified child-care property.

The sale, merger, acquisition, 10Enr Eng CS for HB 4191 or bankruptcy of any taxpayer shall not create new eligibility for the credit in any succeeding taxpayer;

11Enr Eng CS for HB 4191 (1) The credit otherwise allowable under subsection (b) of this section with respect to such property for the recapture year and all subsequent taxable years shall be reduced by the applicable recapture percentage;

and 12Enr Eng CS for HB 4191 (3) The employer shall certify to the department division the names of the employees, the name of the child-care provider, and such other information as may be required by the department division to ensure that credits are granted only to employers who provide or sponsor approved child care pursuant to this section.

Pursuant to rules promulgated by the Tax Department Division, a non-profit corporation applicant shall provide a schedule to the Tax Department Division with all information required under §11-24-44(c)(3) of this code.

The Tax Department Division shall within 90 days certify the amount of transferrable credit available to be transferred, sold, or assigned to another taxpayer.

PartPART 1.

GeneralGENERAL AuthorityAUTHORITY andAND DutiesDUTIES ofOF theTHEDEPARTMENT DepartmentOF ofHUMAN HealthS andERVICES Human Resources Services 13 Eng CS for HB 4191 §49-2-113a.

Enr CS for HB 4191 (a) (1) A licensed child care program shall be paid subsidy payments based on monthly enrollment.

(a) The secretary shall promulgate propose for legislative approval rules in accordance with §29A-3-1 et seq.

PartP XI.ARTXI.

ChildCHILDC CareARES SubsidiesUBSIDIES 14 Eng CS for HB 4191 §49-2-1101.

Enr CS for HB 4191 (a) The Legislature finds that abrupt loss of child care assistance due to modest increases in family income creates a benefits cliff that discourages wage growth, limits workforce participation, and destabilizes child care arrangements for children and families.

(f) The department shall submit an annual written report, in electronic format, to the Joint Committee on Government and Finance on or before the first day of each regular session of the 15Enr Eng CS for HB 4191 Legislature regarding the implementation and impact of cliff mitigation strategies implemented under the provisions of this statute.

16Enr CS for HB 4191 The Clerk of the House of Delegates and the Clerk of the Senate hereby certify that the foregoing bill is correctly enrolled.

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Clerk of the House of Delegates ...............................................................

Clerk of the Senate Originated in the House of Delegates.