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SB 735

Phasing out corporate net income tax over 4 years

2026 Regular Session Introduced by Zack Maynard and 1 co-sponsor

SB 735 phases out West Virginia's corporate net income tax over four years, eliminating a major state revenue source without specifying replacement funding mechanisms.

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#corporations #taxation
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Bill Summary · SB 735

Legislative bill overview

SB 735 proposes to eliminate West Virginia's corporate net income tax through a four-year phase-out period. The bill would gradually reduce the tax rate annually until complete elimination, shifting the state's revenue base away from corporate taxation.

Why is this important

Corporate income taxes currently provide a significant portion of state revenue used for education, infrastructure, and public services. Phasing out this revenue source will require either substantial spending cuts, replacement revenue from other tax sources, or both—affecting state budgets and service delivery for years to come.

Potential points of contention

  • Revenue replacement: A four-year phase-out of corporate income tax eliminates a major revenue stream without specifying how the state will replace lost funding or maintain essential services
  • Distributional effects: Corporate tax cuts primarily benefit shareholders and business owners; elimination could increase tax burdens on individual workers or consumers through alternative tax mechanisms
  • Competitive justification: While proponents argue tax cuts attract business investment, evidence on whether corporate tax rates significantly influence location decisions is mixed and contested
  • Implementation timeline: A four-year phase-out is relatively rapid; businesses may plan around interim rates rather than commit to long-term expansion in the state

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

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