House Finance Postpones Action on Tax Bill

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Legislators postponed action on a bill that would provide a credit for West Virginians earning income in another country, following concerns about needing more information.

In a Thursday morning Finance Committee meeting, members took up Senate Bill 170. Counsel explained that residents earning income from another state earn credits against the taxes paid if West Virginia has a memorandum of understanding with that state. This bill would expand the credit to people earning income in any foreign country, regardless of whether there is a memorandum of understanding.

This bill would apply to income more than $100,000. Income that is not reflected in federally adjusted gross income, under $100,000, would not be subject to the credit. The tax credit under this bill would be for the full amount. The bill would also apply to companies as well, counsel explained.

Twenty other states have adopted similar legislation.

Delegates expressed some concerns about the bill including not knowing the full fiscal effect it would have on the state’s revenue. Delegate Paul Espinosa, R-Jefferson, moved to lay the bill over to the next Finance Committee meeting to get more information. The committee adopted this motion.