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HB 5675

WV Reshoring Manufacturing Act

2026 Regular Session Introduced by Ray Canterbury and 10 co-sponsors

West Virginia reshoring manufacturing incentives provide a time-limited, tiered tax credit (up to $1 million per year) for companies replacing imported goods with WV-made products,

To House Finance
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Bill Summary · HB 5675

Summary of HB 5675 (2026) — West Virginia Reshoring Manufacturing Act

Purpose and intent

  • Create a new, time-limited, performance-based state tax credit program to incentivize West Virginia businesses to replace imported goods with goods manufactured in West Virginia.
  • Aim: strengthen in-state production, expand the workforce, and promote long-term economic growth by increasing domestic manufacturing activity.

Key provisions and changes

  • New legal framework: Establishes Article 11-13NN (West Virginia Reshoring Manufacturing Act) adding definitions, eligibility rules, credit mechanics, administration, and sunset provisions.
  • Definitions (§11-13NN-3)
    • Eligible taxpayer: any taxpayer that purchases goods for resale, distribution, or use in West Virginia.
    • Imported goods: tangible property manufactured outside the U.S. and imported for consumption.
    • Qualified West Virginia manufacturer: entity with a physical WV manufacturing facility where manufacturing is the primary production of the reshored product.
    • Reshoring activity: replacing imported goods with WV-manufactured goods.
    • Reshoring activity verification report: CPA-reviewed report confirming credits qualifications.
    • Verified initial reshoring value: annual dollar value of imported goods replaced by WV-made goods.
    • Verified continued reshored activity value: annual value of repeat purchases of WV-made goods that previously replaced imports.
  • Credit creation and calculation (§11-13NN-4; §11-13NN-5)
    • Eligible taxpayers may receive a nonrefundable tax credit equal to a percentage of:
    • Verified initial reshoring value, and
    • Verified continued reshored activity value.
    • Expenditures used to calculate the credit cannot be double-counted for other WV tax incentives (economic opportunity credit or manufacturing investment credit).
    • Base credit: 25% of Verified initial reshoring value.
    • Continued reshored activity credits (repeat purchases):
    • 2nd taxable year: 20% of Verified continued reshored activity value
    • 3rd taxable year: 15%
    • 4th taxable year: 10%
    • 5th taxable year: 5%
    • annual credit cap: $1 million per eligible taxpayer per taxable year.
    • Credit applies to state taxes as described in §11-13NN-7.
  • Eligibility and certification (§11-13NN-6)
    • WV Office of Economic Development (OED) determines eligibility of the taxpayer, the reshoring activity, and the WV manufacturer; reports to the Tax Commissioner as agreed.
    • Application process through OED; taxpayer must agree to satisfy West Virginia tax obligations and delay filing the credit claim until OED confirms fulfillment.
    • After completing reshoring activity, taxpayers must file required WV tax reports, pay any due taxes, and submit a reshoring activity verification report.
    • OED approves the credit and issues a credit-grant document to the taxpayer and reports to the Tax Commissioner.
  • Application of the credit to state taxes (§11-13NN-7)
    • Beginning in the taxable year with eligible expenditures, credits reduce WV taxes in the following sequence: corporate net income tax first, then any remaining credit against personal income tax for eligible pass-through entities or individuals, allocated among members as profits/losses are allocated.
  • Uses, carryforward, and expiration (§11-13NN-8)
    • No credit against employer withholding taxes.
    • Unused credits may be carried forward to offset future taxes in succeeding years, but:
    • Carryback is not allowed.
    • Carryforward limited to the second taxable year after the year of expenditures.
    • Any remaining credit after that period is forfeited.
  • Administrative rules and burden of proof (§11-13NN-9; §11-13NN-10)
    • Agencies may promulgate rules to implement the act.
    • Claimants must prove eligibility and credit entitlement by clear and convincing evidence.
  • Sunset and expiration (§11-13NN-11–§11-13NN-14)
    • Sunset: The act expires December 31, 2030, unless reauthorized.
    • No new credits may be earned or certified for reshoring activity occurring after sunset.
    • Credits earned and certified prior to sunset remain valid and may be claimed under the act.
    • Effective date: July 1, 2026; applies to taxable years including or after that date.
  • Miscellaneous
    • No credit against WV employer withholding taxes.
    • Credit interacts with other WV tax credits to ensure no double-dipping on the same expenditures.

Who is affected

  • Eligible taxpayers purchasing goods for WV operations that are seeking to replace imported goods with WV-manufactured goods.
  • Qualified West Virginia manufacturers that maintain WV manufacturing facilities and produce the reshored goods.
  • Office of Economic Development and WV Tax Commissioner, which administer the program, verify eligibility, and process credits.
  • CPAs conducting reshoring verification reports.

Timeline and procedural aspects

  • Effective date: July 1, 2026.
  • Eligible expenditures trigger credits in the taxable year they occur; carryforward available for up to two additional years.
  • Sunset date: December 31, 2030; no new credits earned after that date, but previously earned/approved credits may be claimed as specified.
  • Administrative controls require pre-approval and post-activity verification via OED and CPA-assisted reports before claiming credits.

Potential impact (high-level)

  • Encourages in-state manufacturing and potential job growth by offsetting a portion of the cost to reshore production.
  • Provides a diminishing, multi-year credit for ongoing reshoring activity, incentivizing both initial reshoring and sustained purchases of WV-made goods.
  • Caps per taxpayer help limit large exposure for state revenue; subject to the overall effectiveness of reshoring activity in practice.
  • Establishes a robust verification framework to ensure credits reflect genuine in-state production shifts.

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

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