SB 243 — Establishing disaster repair and recovery effort tax credit for taxpayers subject to severance and business privilege tax in certain circumstances

WESTSB243 VIRGINIAHFIN LEGISLATUREAM REGULARMcOThe SESSIONCommittee Enrolledon CommitteeFinance Substitutemoves forto Senateamend Billthe 243bill BYon SENATORPHILLIPSpage ROSEone, [Passedfollowing Marchthe 14,enacting 2026;clause, by striking out the remainder of the bill and inserting in lieu thereof the following:

inAARTICLE effect13NN. 90 days from passage (June 12, 2026)] Enr CS for SB 243 AN ACT to amend the Code of West Virginia, 1931, as amended, by adding a new article, designated §11-13NN-1, §11-13NN-2, §11-13NN-3, §11-13NN-4, §11-13NN-5, §11- 13NN-6, §11-13NN-7, §11-13NN-8, and §11-13NN-9, relating to establishing disaster repair and recovery effort tax credit for taxpayers subject to the severance and business privilege tax in certain circumstances;

providing a short title;

setting out legislative findings and purpose;

defining terms;

specifying the amount of the credit;

providing for the application of credit and carry forward of unused credit;

requiring filing of application for disaster repair and recovery effort tax credit as condition precedent to claiming credit;

specifying procedure of application for certification, contents of application, and limitation on maximum amount of credits which can be approved;

allowing transfer of credits to successors;

providing for forfeiture of unused tax credits;

providing legislative and emergency rulemaking;

and establishing an effective date.

Be it enacted by the Legislature of West Virginia:

ARTICLE 13NN.

§11-13NN-1.§11-13NN-1. Short title.

Short title.

In order to promote the private sector’s willingness to assist Enr CS for SB 243 with disaster repair and recovery efforts in this state, and to provide the necessary equipment, materials, services, and labor to promptly complete such repair and recovery efforts, there is hereby enacted a disaster repair and recovery tax credit.

(a) When used in this article, or in the administration of this article, terms defined in this section shall have the meanings ascribed to them by this section, unless a different meaning is clearly required by either the context in which the term is used, or by specific definition, in this article.article.(b) Defined terms:"Designee" when used in reference to the Secretary of the Department of Environmental Protection, shall mean any officer or employee of the Department of Environmental Protection duly authorized by the Secretary of the Department of Environmental Protection directly, or indirectly, by one or more delegations of authority, to perform the functions mentioned or described in this article."Disaster" shall mean any natural catastrophe, including, but not limited to, a hurricane, tornado, derecho, earthquake, landslide, mudslide, snowstorm, ice storm, fire, flood, or explosion.

(b) Defined terms:

"Designee", when used in reference to the Secretary of the Department of Environmental Protection, shall mean any officer or employee of the Department of Environmental Protection duly authorized by the Secretary of the Department of Environmental Protection directly, or indirectly, by one or more delegations of authority, to perform the functions mentioned or described in this article.

"Disaster" shall mean any natural catastrophe, including, but not limited to, a hurricane, tornado, derecho, earthquake, landslide, mudslide, snowstorm, ice storm, fire, flood, or explosion.

of this code.code."Expenditures for repair and recovery efforts" shall include payments made by an eligible taxpayer for labor done, tangible personal property, materials, services, or supplies furnished in furtherance of the removal of debris, damaged structures, earth and other disaster-related refuse, clearing, grubbing, grading, and excavation of the ground in preparation for construction, installation and repair of public property and infrastructure, and the construction, installation, and repair of public property and infrastructure following a disaster.

"Expenditures In addition, the term "expenditures for repair and recovery efforts" shallincludes includethe paymentscost madeof bymachinery anand eligibleequipment, taxpayerincluding forthe laborcost done,of tangiblerepairs, personalupgrades, property, materials, services, or suppliesrefurbishments furnished in furtherance of the removalmachinery ofand debris,equipment, damagedpurchased structures,or earthleased andby otheran disaster-relatedeligible refuse,taxpayer clearing, grubbing, grading, and excavationdirectly ofused theas groundpart in preparation for construction, installation and repair of public property and infrastructure, and the construction, installation, and repair of public property and infrastructurerecovery followingefforts. a disaster.

In addition, the term "expenditures Enr CS for SB 243 for repair and recovery efforts" includes the cost of machinery and equipment, including the cost of repairs, upgrades, or refurbishments of the machinery and equipment, purchased or leased by an eligible taxpayer and directly used as part of the repair and recovery efforts.

The terms "includes" and "including", when used in a term or phrase defined in this article, shall not be deemed to exclude other things otherwise within the meaning of the term defined.defined."Secretary of the Department of Environmental Protection" shall mean the same as that term is defined in §22-1-2 of this code."Tax Commissioner" shall mean the Commissioner of the West Virginia State Tax Division."Taxpayer" shall mean any person subject to the tax imposed by §11-13A-1 et seq.

"Secretary of the Department of Environmental Protection" shall mean the same as that term is defined in §22-1-2 of this code.

"Tax Commissioner" shall mean the Commissioner of the West Virginia State Tax Division.

"Taxpayer" shall mean any person subject to the tax imposed by §11-13A-1 et seq.

The amount of this credit shall be determined and applied as provided in this article.article.(b) The amount of credit allowable is $500,000 of the taxpayer's expenditures for repair and recovery efforts on each disaster as determined and certified by the Secretary of the Department of Environmental Protection.

(b) The amount of credit allowable is $500,000 of the taxpayer's expenditures for repair and recovery efforts on each disaster as determined and certified by the Secretary of the Department of Environmental Protection.

The aggregate annual credit Enr CS for SB 243 allowance may be claimed by taxpayer against its severance tax liability shown on its monthly tax returns at the rate of one twelfth of the annual credit allowance per month.month.(d) If any credit remains after application of subsection (c) of this section, the amount thereof may be carried forward to each ensuing tax year until used or until the expiration of the ninth taxable year subsequent to the year in which the credit was first available.

(d) If any credit remains after application of subsection (c) of this section, the amount thereof may be carried forward to each ensuing tax year until used or until the expiration of the ninth taxable year subsequent to the year in which the credit was first available.

The Secretary of the Department of Environmental Protection may coordinate repair and recovery projects with other departments as necessary.necessary.(b) Applications for certification of a repair and recovery effort project shall contain a description of the work to be performed, an estimate of the cost of the project, and any other information which the Secretary of the Department of Environmental Protection or his or her designee may require.(c) Applications for certification of a repair and recovery effort project shall be filed with the Secretary of the Department of Environmental Protection within 72 hours of commencement of any project.

(b) Applications for certification of a repair and recovery effort project shall contain a description of the work to be performed, an estimate of the cost of the project, and any other information which the Secretary of the Department of Environmental Protection or his or her designee may require.

(c) Applications for certification of a repair and recovery effort project shall be filed with the Secretary of the Department of Environmental Protection within 72 hours of commencement of any project.

Applications for credit may be supplemented or amended at any time after filing until all the information required by subsection (b) of this section has been Enr CS for SB 243 provided.

Once a complete application has been filed, the Secretary of the Department of Environmental Protection shall review it promptly to determine whether the project should be certified as eligible for credit under this article.(d) The Secretary of the Department of Environmental Protection is authorized to certify no more than $5 million of expenditures annually for repair and recovery efforts as eligible for the credit provided in this article.

(d) The Secretary of the Department of Environmental Protection isshall authorizedkeep totrack certifyof nothe moretotal thanexpenditures $5approved millionand ofwill expenditurescease annuallyaccepting applications once the expenditure limit has been reached.(e) The eligible taxpayer claiming the credit for certified expenditures for repair and recovery efforts asshall eligibleinclude forinformation supporting the computation of the credit providedand inany other information the Tax Commissioner requires with its severance tax returns filed under this article.chapter.

The Secretary of the Department of Environmental Protection shall keep track of the total expenditures approved and will cease accepting applications once the expenditure limit has been reached.