West Virginia offers several tax credits that may reduce the amount of tax you owe or increase your refund. Some credits are refundable, meaning you may receive the credit even if you owe no tax, while others are nonrefundable and can only reduce your tax liability to zero.
If any of the credits below apply to your situation, you may be eligible to claim them on your West Virginia income tax return.
Non-Family Adoption Tax Credit
West Virginia provides a credit for certain expenses related to the adoption of a child who is not related to the taxpayer.
What expenses may qualify?
Qualifying adoption expenses may include:
- Agency fees
- Court costs
- Attorney fees
- Other necessary adoption-related expenses
Keep documentation of all expenses in case the West Virginia State Tax Department requests verification.
Senior Citizen Tax Credit for Property Tax Paid
Eligible senior citizens may qualify for a credit based on property taxes paid on their primary residence.
Who may qualify?
Eligibility generally depends on:
- Age requirements established by West Virginia law
- Ownership of the residence
- Property taxes paid during the tax year
- Income limitations, if applicable
Supporting property tax records should be retained with your tax documents. See West Virginia Senior Citizens Tax Credit (SCTC‑A) for Property Tax Paid for more details.
Build WV Property Value Adjustment Refundable Credit
The Build WV Program provides incentives intended to encourage residential development and growth within West Virginia communities.
Eligible taxpayers who participate in qualifying projects may be entitled to a refundable credit based on property value adjustments authorized under the program.
Why is it refundable?
A refundable credit may be paid to you even if the credit exceeds your West Virginia income tax liability.
Disabled Veteran Real Property Tax Credit
Certain disabled veterans may qualify for a credit related to property taxes paid on a qualifying residence.
Who may qualify?
Eligibility generally depends on:
- Veteran status
- Disability qualification requirements
- Ownership and occupancy of the property
Keep any disability and veteran status documentation with your permanent records.
Small Business Property Tax Adjustment Credit
West Virginia provides a credit for eligible taxpayers who pay certain property taxes on qualifying small business property.
This credit is intended to help offset the impact of business personal property taxes for eligible business owners.
Documentation needed
Maintain copies of:
- Property tax receipts
- Assessment records
- Business records supporting the credit claim
Credit for Taxes Paid to Another State
If you're a West Virginia resident and paid income tax to another state on income that is also taxed by West Virginia, you may qualify for a credit.
Why is this credit available?
The credit helps prevent the same income from being taxed twice.
The allowable credit is generally limited to the lesser of:
- The tax paid to the other state, or
- The West Virginia tax attributable to that same income
Keep a copy of the other state's return and proof of tax paid with your records.
Motor Vehicle Property Tax Credit
West Virginia allows many taxpayers to claim a credit for qualifying personal property taxes paid on motor vehicles.
What vehicles may qualify?
Eligible vehicles often include:
- Passenger automobiles
- Motorcycles
- Pickup trucks used for personal purposes
- Other qualifying personal-use vehicles
The credit is generally based on property taxes actually paid during the tax year.
What documentation should I keep?
Retain:
- County property tax receipts
- Vehicle registration records
- Assessment notices
Homestead Excess Property Tax Credit
Homeowners who qualify for the Homestead Exemption Program may be eligible for the Homestead Excess Property Tax Credit.
What is the credit for?
This credit helps provide relief when property taxes exceed certain thresholds established under West Virginia law.
Eligibility depends on factors such as:
- Participation in the Homestead Exemption Program
- Household income
- Property tax amounts paid
Supporting homestead and property tax records should be retained.
Total Nonrefundable Tax Credits
West Virginia also allows taxpayers to claim certain additional nonrefundable credits authorized by state law.
These credits may reduce your West Virginia income tax liability but generally cannot generate a refund by themselves.
Examples may include credits related to:
- Economic development programs
- Business incentives
- Investment programs
- Other state-authorized tax credit programs
If claiming a credit from a state-issued certificate or authorization, keep all supporting documentation with your tax records.
How Do I Claim West Virginia Tax Credits?
- Navigate to the West Virginia Return section.
- Select Credits.
- Review each available credit category.
- Enter any required information and supporting amounts.
- Continue through the remainder of the West Virginia return.
What Records Should I Keep?
Keep documentation supporting any credit claimed on your return, including:
- Property tax receipts
- Vehicle tax records
- Adoption expense records
- Veteran disability documentation
- Homestead exemption records
- Other state tax returns
- Credit certificates and supporting schedules
Keeping these records with your tax documents can help support your credit if the West Virginia State Tax Department requests additional information after your return is filed.