West Virginia Senate Bill SB508

West Virginia 2026 Regular Session

• Introduced: 1/19/26
• Refer: 1/19/26

Caption

Permitting businesses to receive tax credit for using WV manufactured products

Summary

Senate Bill 508 creates a new business tax credit for purchases of products that are produced or manufactured in West Virginia. A business operating in the state may claim a credit of up to 50 percent of the cost of qualifying in-state products, so long as the business maintains its corporate headquarters in West Virginia and can provide proof of purchase if requested. The bill states that the credit applies in the taxable year the investment was made and is intended to encourage businesses to buy West Virginia-made goods. The credit is capped in two ways: no more than $100,000 in total credits may be allowed under the new section, and the total credit used in any taxable year by the taxpayer and certain owners cannot exceed $10,000. Any unused credit may be carried forward for up to four taxable years after the year of investment, after which it expires. The bill also specifies how the credit is applied against the business franchise tax, corporation net income tax, and, for pass-through entities, the owners’ taxes, while prohibiting use against withholding tax.

Impact

SB508 would add a new section to West Virginia Code chapter 11, article 13NN, creating a state tax incentive tied to the purchase of West Virginia-produced or manufactured products. It would affect business franchise tax and corporation net income tax liability, and it would also extend benefits to owners of LLCs, electing small business corporations, and partnerships through pass-through treatment. The bill would not change tax rates directly, but it would reduce state tax revenue for eligible businesses that make qualifying in-state purchases.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the bill appears to be framed positively as an economic development and in-state purchasing incentive. The caption and purpose statement suggest support for West Virginia manufacturing and local business retention. No recorded opposition, amendments, or floor debate are included in the materials, so there is no documented controversy in the provided record.

Contention

The main policy questions raised by the bill are likely to be the cost to state revenue, the fairness of limiting the credit to businesses with corporate headquarters in West Virginia, and whether the incentive meaningfully increases demand for in-state manufactured goods. Another possible point of contention is the administrative burden of verifying purchases and allocating credits among owners of pass-through entities. Because no committee transcript or vote history is provided, no specific legislator or stakeholder opposition can be identified from the record.