Governor Patrick Morrisey has proposed a new tax relief package ahead of the upcoming legislative session in West Virginia. The plan includes a reduction in personal income taxes, changes to the historic rehabilitation tax credit, and an expansion of the Tourism Development Action tax credit. It also outlines efforts to align with provisions from the Trump Administration’s “One Big Beautiful Bill,” aiming to provide tax relief for working residents across the state.
“We did the hard work first,” Governor Morrisey said. “Strong revenues did not happen by accident, and they allow us to deliver meaningful tax relief without sacrificing essential services. West Virginians are spending more and contributing to a stronger state budget. That gives us the ability and the responsibility to return more money to the people who earned it.”
According to data from the first half of this fiscal year, West Virginia’s general revenue collections have surpassed estimates by five percent, totaling $128 million above projections. This is an increase compared to last year at this time when revenues were $40 million over estimate.
The current proposal follows several pro-growth initiatives under Governor Morrisey’s administration over the past year. These include reducing regulatory barriers, reforming permitting processes, launching economic initiatives such as “Backyard Brawl,” and attracting over $4.2 billion in private sector investment with expectations of creating more than 4,200 jobs. Investments have also been made in infrastructure projects like water and sewer improvements; broadband expansion funded by $546 million from federal sources; and establishing a Rural Health Transformation Fund that has secured $199 million in federal funds for 2026.
“Kentucky and Ohio already cut their income tax rates, and I don’t want to see West Virginia get left behind,” said Governor Morrisey.
The administration’s plan would incorporate elements from President Trump’s bill that support families and business investment. These measures include increasing credits for child and dependent care, raising limits on childcare flexible spending accounts, restoring full bonus depreciation for qualified property purchases, allowing immediate expensing of domestic research costs, and offering more favorable business interest deductions.
“The Trump tax cuts provide significant savings for West Virginia and will allow for further economic growth,” Governor Morrisey said.
As lawmakers prepare for the legislative session, Governor Morrisey expressed his intention to collaborate on simplifying the state’s tax code while focusing on continued economic growth.
