The Senate passed Senate Bill 1, the Small Business Growth Act, which would establish a new program administered by the West Virginia Department of Commerce to encourage capital investment in eligible West Virginia businesses.
The program defines terms like “affiliate” (an entity controlled by another), “capital investment” (cash invested in a growth fund for specific purposes), “growth fund” (a certified entity investing in rural businesses), and “eligible business” (a business with fewer than 250 employees and principal operations in West Virginia). Growth investors making capital investments in certified growth funds can receive tax credits against their state tax liability, with the credit amount determined by an “applicable percentage” that increases over time.
The legislation outlines application procedures for growth funds, including requirements for business plans and revenue-impact assessments, and sets limits on the total amount of credits that can be issued annually. It also includes provisions for recapturing credits if growth funds fail to meet investment or reinvestment requirements, prohibits certain investments by eligible businesses in growth funds, and mandates annual reporting by growth funds on job creation and salaries. The act would take effect on January 1, 2027.
The bill now heads to the House of Delegates for consideration.
The Senate is adjourned until Monday, Feb. 9, at 11 a.m.
The Judiciary Subcommittee for SB593 will meet Monday at 9 a.m. in 208W
