West Virginia lawmakers hope $25,000 in tax credits entice people to come home on country roads

West Virginia may be famous for its “Country Roads,” but state lawmakers are hoping that $25,000 in tax credits will help attract former residents to come back.

Senate Bill 438, passed on to the West Virginia House of Delegates Monday, offers taxpayers a $25,000 non-refundable credit against their West Virginia income taxes.

There are, however, stipulations. The credits cannot be retroactively applied to a previous tax year, and while unused portions of the credit can be rolled forward, the maximum amount of tax credit allowed yearly under the bill remains $25,000.

The bill’s writers seek to capitalize on low unemployment rates in the state to recoup human capital and bring back those who left West Virginia to make money elsewhere. Due to the decline of coal and other industries, West Virginia is the only state with a lower population now than it had in 1950.

“West Virginia is enjoying low unemployment rates and seeks the return of West Virginians who have been gone because they, or their family members, felt the need to pursue employment opportunities outside of the state,” the lawmakers wrote as the purpose of the bill.

To be eligible, taxpayers must meet the following criteria:

• The taxpayer must have either been born in the state or resided and worked in West Virginia for at least 10 years.
• The taxpayer must not have resided in West Virginia for at least 10 consecutive years prior to 2023.
• The taxpayer must have become a West Virginia resident again on or after Jan. 1, 2023.

If the bill passes as currently written, the $25,000 credit will become available on Dec. 31, 2023, and will lapse after Dec. 31, 2029.

The Senate is not the only part of the state’s government to try out financial incentives as a way to attract people to West Virginia.

Ascend WV, a public-private partnership that includes participation by the state departments of Tourism and Economic Development, offers remote workers $12,000 to move to West Virginia, $10,000 as an initial incentive and another $2,000 if the participant stays for a second year.