West Virginia 2026 Regular Session

West Virginia House Bill HB4954

Introduced
1/29/26  

Caption

To provide a reduction of the tax for companies who have 75% or more of their workforce as West Virginia residents

Summary

House Bill 4954 would create a new section in West Virginia’s business and occupation tax law to give a tax rate reduction to companies that employ at least 75 percent West Virginia residents. The bill states a legislative finding that encouraging employers to hire in-state workers benefits the state economy, and it sets the reduction at 2.5 percent of the company’s overall business and occupation tax rate. To qualify, a company would need to provide evidence that at least 75 percent of its workforce are West Virginia residents. The Department of Tax and Revenue would be authorized to issue guidance on how the reduction is implemented. The bill would apply beginning with the 2026 tax year and continue thereafter.

Impact

The bill would amend Chapter 11, Article 13 of the West Virginia Code by adding a new tax incentive tied to workforce residency. Its effect would be to lower business and occupation tax liability for eligible companies, while creating an administrative verification role for the Department of Tax and Revenue. The measure would primarily affect employers with significant in-state hiring and could influence business recruitment, staffing, and tax planning decisions.

Sentiment

Based on the bill text and the absence of recorded committee discussion or votes in the provided materials, the overall sentiment appears supportive of encouraging local hiring and economic development. The bill’s findings frame the proposal as a way to strengthen the state economy by rewarding companies that employ West Virginia residents. No formal opposition or recorded controversy is shown in the available context.

Contention

The main potential point of contention is the 75 percent workforce-residency threshold, which may be viewed as either a strong incentive for local hiring or a restrictive standard that could exclude many employers. Another likely issue is verification: companies would need to prove workforce residency, and the Department of Tax and Revenue would need to define implementation details. Concerns could also arise over revenue loss from the tax reduction and whether the incentive fairly treats businesses with regional or remote workforces.

Companion Bills

No companion bills found.

Previously Filed As

WV HB2552

To provide a reduction of the tax for companies who have 75% or more of their workforce as West Virginia residents

WV HB2096

Providing authority for West Virginia law enforcement agencies to fine individual vehicle owners who fail to register their vehicle that have have been parked at their residence for more than sixty days

WV HB2944

Providing authority for West Virginia law enforcement agencies to fine individual vehicle owners who fail to register their vehicle that have been parked at their residence for more than sixty days

WV HR9

Urging the Governor and our federal representatives to assist West Virginians who have and will lose their federal jobs and to do all it their power to prevent these job losses in our state

WV HB2593

Relating to the limitations on the financial relationships with foreign entities that have values antithetical to those of the State of West Virginia

WV HB2553

To exempt the first $20,000 of earnings from the state income tax for West Virginia residents

WV HB2985

Assure West Virginians proper access to water and sewage service at reasonable rates

WV HB3064

To give an additional $20,000 dollar Homestead Exemption on the property tax of any West Virginia citizen farmer that produces more than 50% of his or her income from their farm

WV HB3458

Relating to tax on the privilege of holding a license to operate West Virginia Lottery table games

WV HB3091

To revise and update all provisions of state code relating to the West Virginia State Guard

Similar Bills

No similar bills found.