House Bill 2928 creates a new personal income tax credit program called “The Young Professional Tax Credits” for West Virginia residents ages 18 through 40 who have student loan debt. For tax years beginning on or after January 1, 2025, eligible taxpayers could claim a credit equal to the amount of student loan interest paid during the year. The bill also includes a separate provision for a refundable child care credit for taxpayers in the same age range, tied to the federal deduction for dependent children of a college graduate who resides in the state.
The bill further provides that a college graduate with no student loan debt may claim an annual credit of up to $1,000 against personal income tax until age 40 or until leaving West Virginia, whichever occurs first. To qualify for the student loan credit, a taxpayer must also have been a resident of the state for at least three years. The measure is framed as an incentive for young professionals and graduates to remain in or move to West Virginia while helping offset education and family-related costs.
Impact
HB2928 would amend the West Virginia Code by adding a new article creating a state income tax credit for student loan interest and a refundable child care credit for eligible young adult taxpayers. It would affect personal income tax liability for residents ages 18 to 40, particularly college graduates and borrowers, and would add a residency requirement of three years for the student loan credit. The bill would also create a new refundable credit structure, which could reduce state revenue and expand tax benefits for younger working families and recent graduates.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes, the measure appears to be presented as a pro-workforce, pro-retention incentive for young professionals in West Virginia. The sponsors suggest support for easing student debt burdens and helping graduates with child care costs, indicating a generally favorable policy intent toward attracting and keeping younger residents. Because no transcripts or vote history are provided, there is no documented public opposition or support beyond the bill’s sponsorship.
Contention
The main points of potential contention are fiscal cost, eligibility limits, and fairness. Critics could question whether a student-loan interest credit and a refundable child care credit for only ages 18 to 40 are the best use of state tax policy, especially given the added revenue impact and the separate $1,000 credit for graduates without student debt. The three-year residency requirement may also be debated as either a reasonable safeguard for long-term residents or an unnecessary barrier for newer arrivals and recent graduates.
Making a supplementary appropriation to the Department of Human Services, Bureau for Medical Services – Policy and Programming and State Board of Education – State Department of Education