Severely disabled veterans in West Virginia will be eligible for a tax break starting in 2024. Lawmakers approved this tax break for West Virginia veterans during the regular session this year. The credit will apply only to the tax paid on real property used for residential purposes.
Tax break for West Virginia veterans: who will get it and how much?
West Virginia’s tax break for veterans is part of the Property Tax Adjustment Act of 2023 (H.B.2526), which was passed during the 2023 regular session. Beginning Jan. 1, 2024, a veteran with a 90% or greater Veterans Administration Combined Disability Rating will be eligible for a tax break for West Virginia veterans.
Specifically, eligible veterans will qualify for an income tax credit in the amount of property tax that they paid to their county. The credit will be applied as a discount on the eligible veteran’s 2024 taxes filed in 2025.
It must be noted that the credit can’t be used toward any delinquent real property tax or any back taxes owed. For a property to qualify for the credit, the property tax amount must have been paid to the county sheriff on the homestead that is used exclusively for residential purposes.
The tax break for West Virginia veterans is a refundable tax credit. This means that if the amount of credit is more than the veteran’s personal income tax, the veteran will be allowed to claim the excess amount as a refundable tax credit.
As per the legislation, the tax break will immediately terminate if the property owner dies, or the assessor determines that the property in question no longer qualifies for the credit, or if the property is sold.
Not many veterans are aware of this tax credit. It is recommended that veterans stay in contact with veterans organizations to get updates on available tax credits.
Other credits part of H.B.2526
In addition to creating a tax break for West Virginia veterans, H.B.2526 also reduces the graduated personal income tax rates by approximately 21.25%. The reduction in tax rate applies to individuals, heads of household, surviving spouses, couples filing joint or separate returns, as well as to nonresident composite returns and withholding obligations.
H.B.2526 also implements a “motor vehicle property tax adjustment credit.” Eligible taxpayers will get a refundable credit for personal property taxes timely paid on motor vehicles. The credit amount will be 100% of the personal property tax. This credit isn’t available to motor vehicle dealers.
H.B.2526 also implements a “small business property tax adjustment credit.” Eligible small businesses could receive a credit of 50% of the property tax due, owing and timely paid. A small business, for the purpose of the credit, doesn’t include any person having a working interest in oil, natural gas, or natural gas liquid producing property. It also doesn’t include public utilities.
