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HB 5460

Construction Cost Relief Act

2026 Regular Session Introduced by Eric Brooks and 9 co-sponsors

West Virginia will refund sales tax paid on materials for qualifying new single-family homes, up to 30% of the sale price, at project completion and sale.

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Bill Summary · HB 5460

Summary of HB 5460 (2026) – Construction Cost Relief Act (West Virginia)

Purpose and Intent

HB 5460 aims to provide a tax-related incentive to support new single-family home construction in West Virginia. It creates a refund (rebate) of sales tax paid on construction materials used for building new residential homes, with the goal of reducing overall construction costs for new homebuyers.

Key Provisions

  • Establishment of a new statute (Article 27 – Construction Cost Relief Act).

    • Adds §§ 11-27-1 through 11-27-5 to the West Virginia Code.

  • Refund of sales tax for materials used in new housing construction (§11-27-2).

    • The sales tax imposed on construction materials for new single-family housing intended for home ownership in West Virginia shall be refunded.
    • The rebate is provided at the conclusion of construction and at the time of home sale.
    • The recorded sales price on the Closing Disclosure determines the basis for the rebate.

  • Calculation of the rebate (§11-27-3).

    • The annual housing index report from the State Tax Department is used for calculation and remains in effect until a new report is published.
    • Sales price adjustment:
    • In counties above the state average sales price, the maximum eligible sale value uses 1.35 times the county’s average.
    • In counties below the state average, the maximum sale value uses 1.35 times the state average.
    • Limitations:
    • A new home builder who sells the home may claim up to 30% of the sales price (as reported on the Closing Disclosure) as the established value of materials.
    • Alternatively, if the builder uses the home as their primary residence, the construction loan amount may be used in place of the sales price for calculating the rebate.

  • Non-assignability of the refund (§11-27-4).

    • The right to receive the refund cannot be assigned; any attempted assignment is void.
    • Refunds are issued only upon timely filing with the Tax Commissioner, using prescribed forms, within one year after construction completion.
    • Late claims are not recognized as a moral obligation of the state.

  • Effective date (§11-27-5).

    • The act applies to all homes for which construction begins on or after July 1, 2026.

Who is Affected

  • Primary beneficiaries: Builders of new single-family homes in West Virginia and, indirectly, home buyers, who would receive a refund of sales tax paid on construction materials.
  • Timing and eligibility: Applies to qualifying new-home construction starting July 1, 2026 onward; refunds are claimed at construction completion and home sale.

Potential Impact

  • Could reduce the total cost of construction for new single-family homes by providing a tax rebate on materials.
  • The value of the rebate depends on county-specific housing prices and the 1.35 multiplier, which may impact the rebate amount differently across counties.
  • Non-assignability ensures the rebate remains with the buyer/owner and not transferable.

If you’d like, I can add a quick comparison with typical tax credit structures or a sample scenario showing how the rebate would be calculated for a hypothetical new home.

Compiled from official sources — confirm details with the bill’s official record.

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