Charleston, W.Va. – West Virginia Governor Patrick Morrisey signed legislation on Monday conforming the state’s tax code to the permanent provisions of the 2017 federal tax cuts enacted under the Trump administration. The bills, Senate Bills 393 and 400, aim to ensure West Virginians fully benefit from federal tax relief, according to a statement released by the Governor’s office.
“President Trump delivered meaningful tax relief to the American people that reward work, encourage investment, and strengthen our economy,” Morrisey said. “By aligning our state code with the permanent changes in the Trump Tax Cuts, we ensure that West Virginians receive the full benefit of those cuts right here at home.”
The legislation restores 100 percent bonus depreciation for businesses investing in novel property and equipment. It also reinstates full expensing for domestic research and development activities, including software development. Individual taxpayers will be able to deduct up to $1,000 for single filers and $2,000 for joint filers for charitable contributions. The plan further expands the business interest deduction and increases the small business investment expensing limit to $2.5 million.
Beyond the conformity measures, the legislation includes provisions designed to provide future tax relief to families. Starting in 2026, the Child and Dependent Care Credit will increase to as much as 50 percent. Flexible Spending Account limits for childcare expenses will also rise to $7,500 for joint filers, up from the current $5,000.
Whereas celebrating the passage of the tax conformity bills, Governor Morrisey emphasized the need for further tax relief measures. He specifically called for an across-the-board income tax cut for West Virginia residents, framing it as a response to the state’s affordability challenges. “Conformity is significant, but we still have work to do. The people of West Virginia are expecting relief, they’re expecting an answer to the affordability crisis, and they’re looking to us for the solution. That’s why we must pass an across-the-board income tax cut. The citizens of West Virginia deserve this,” Morrisey stated.
Recent reporting from West Virginia Watch highlighted that while Governor Morrisey has focused on tax cuts, he has not yet presented a plan to address the state’s rapidly increasing power bills. Mountain State Spotlight reported that Morrisey has simultaneously advocated for infrastructure and education investments alongside his push for income tax reductions. WSAZ News reported on the Governor’s calls for tax cuts without detailing specific proposals.
