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Progress Report
2022 Legislative Session
The West Virginia State Legislature adjourned its 2022 session on March 12 after 60 days of discussion and debate . In this 2022 legislative review , West Virginia Executive takes a look at just a few of the House bills ( HB ) and Senate bills ( SB ) that were intended to have a major impact on West Virginians and the business community . From childcare facility tax credits to the BUILD WV Act , the Legislature is moving to put our people and our businesses first .
SB 656
CHILDCARE TAX CREDIT By Brian Dayton
SENATE : 30-2 � HOUSE : 92-2
SB 656 was designed to help alleviate the serious lack of available childcare in West Virginia and to aid people who want to re-enter the workforce but are otherwise prohibited due to the need to care for their children . Under SB 656 , a business that starts an on-site childcare facility is eligible to receive a 50 % tax credit over five years against the initial startup costs . The credit can be applied to costs such as buildings , building improvements , construction , furniture and operations . All businesses — for-profits , nonprofits and pass-through entities — are eligible for the credit , and the bill also allows multiple businesses to team up to start a childcare facility . There is also a clawback provision in the bill to ensure that an employer doesn ’ t quickly establish and disestablish a childcare facility for the sole purpose of gaining the credit .
HB 2096
FILM INVESTMENT TAX CREDIT By Rachel Coffman
SENATE : 32-1 � HOUSE : 87-11
The state ’ s film tax incentive credit , established in 2007 , was terminated in 2018 after a Legislative Auditor ’ s Report communicated the credit ’ s limited economic impact . Despite what the fine print reported , the state ’ s growing film industry came to a halt . Many pre-production projects transferred to other states with incentives , like Kentucky . West Virginia became an outlier for film projects .
Delegate Diana Graves , the lead sponsor of HB 2096 , recognized this gap and developed legislation for the credit to be a viable economic tool . Graves reviewed the auditing process for the previous credit and corrected those issues . HB 2096 establishes movies , television shows and music video productions produced in West Virginia with a minimum cost of $ 50,000 are eligible for 27 % tax reimbursement on expenses accrued in the state . The Senate Finance Committee amended the bill , removing the annual cap of $ 10 million among other actions .
Despite the concerns that arose previously , the House concurred with the Senate ’ s changes , reestablishing the credit for the state ’ s film industry to once again have the chance to grow . The credit will be monitored by the West Virginia Department of Economic Development , and a project will not be eligible for the credit if it displays the state in a negative manner .
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