All Roll Calls
Yes: 267 • No: 40
West VirginiaSB 12026 Regular SessionSenateWALLET
Small Business Growth Act
Sponsored By: Randy E. Smith (Republican)
Signed by Governor
§5B-12-1§5B-12-2§5B-12-3§5B-12-4§5B-12-5§5B-12-6§5B-12-7
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 0 costs, 3 mixed.
State tax credits for growth investors
When you make a certified capital investment, you get a state tax credit. The credit percent is 0% for the first two allowance dates and 15% for each of the next four. You cannot claim any credit for tax years that start before 2029. You cannot claim more than your state tax bill, and you can carry forward unused amounts for up to five years. Credits are nonrefundable and cannot be sold; pass‑throughs can allocate credits to owners with notice. Insurers can use the credit to fully offset premium or retaliatory taxes without extra taxes or fees. The state caps total credits claimed to $15 million each calendar year, not counting carryforwards.
Rules for investing in WV businesses
A business is eligible if it has fewer than 250 employees and its main operations are in West Virginia: at least 60% of employees or payroll are in‑state. Once eligible at the first investment, it stays eligible for follow‑on rounds. A fund must put 100% of the cash purchase price into qualified investments by the third anniversary of the initial credit allowance date. A fund and its affiliates may invest at most the greater of 20% of the fund’s authority or $7,500,000 in one business. Revolving credit and senior‑secured real‑estate loans do not count unless the business tried to get a similar bank loan and was denied. Businesses that receive a qualified investment, or their affiliates, cannot own, lend to, or invest in a growth fund to finance these capital investments.
How growth funds get certified
The law creates the WV First Small Business Growth Program, run by the Department of Commerce. To apply, a fund must state its requested capital authority, show an RBIC or SBIC license, prove at least $100 million of prior investments in small‑county companies, file a 10‑year jobs and revenue plan from a national forecaster, and pay a nonrefundable $5,000 fee. The Department decides within 30 days and can deny if the plan is not fiscally positive over 10 years or if the program’s annual authority is already used. Certifications are first‑come; same‑day filings share authority pro rata. After certification, the fund must receive investor cash within 90 days and show proof by day 95, or the certification lapses and it must reapply. At least 10% of fund capital must come from insiders, and the purchase price cannot exceed the fund’s certified authority. The Department begins accepting applications within 90 days of the law’s effective date.
Reporting, recapture, and exit for funds
Growth funds must file an annual report by June 30 during the compliance period. The report after the third anniversary must prove 100% of the purchase price was invested and list investees, bank statements, eligibility letters, jobs, and average pay. The Department may recapture credits for failing the 100% invest‑and‑maintain rules, early distributions, or violations, but must give notice and six months to cure. Funds can ask the Department before investing if a business is eligible; no answer by the 20th business day means it is deemed eligible. On or after the sixth anniversary, a fund may apply to exit; the Department must respond within 15 days or it is deemed approved by the 20th business day. Recaptured credits return to the Department and are reissued pro rata to applicants whose allocations were reduced.
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Sponsors & Cosponsors
Sponsor
Randy E. Smith
Republican • Senate
Cosponsors
Mike Azinger
Republican • Senate
Trenton Barnhart
Republican • Senate
T. Kevan Bartlett
Republican • Senate
Vince Deeds
Republican • Senate
Anitra Hamilton
Democratic • House
Brian Helton
Republican • Senate
Zack Maynard
Republican • Senate
Robbie Morris
Republican • Senate
Chris Phillips
Republican • House
Ben Queen
Republican • Senate
Rollan A. Roberts
Republican • Senate
Tom Takubo
Republican • Senate
Jay Taylor
Republican • Senate
Darren Thorne
Republican • Senate
Jimmy Willis
Republican • House
Jack Woodrum
Republican • Senate
Zack Maynard
Republican • Senate
Roll Call Votes
Senate vote • 2/16/2026
Tarr #1 amends. to House amends rejected (Roll No. 86)
Yes: 6 • No: 26
House vote • 2/16/2026
Passed House (Roll No. 83)
Yes: 87 • No: 3
Senate vote • 2/16/2026
Effective from passage (Roll No. 88)
Yes: 31 • No: 0
Senate vote • 2/16/2026
Senate concurred in House amendments and passed bill (Roll No. 87)
Yes: 29 • No: 2
House vote • 2/13/2026
Effective from passage (Roll No. 84)
Yes: 87 • No: 3
Senate vote • 2/6/2026
Passed Senate (Roll No. 47)
Yes: 27 • No: 6
Actions Timeline
Approved by Governor 2/23/26 - House Journal
2/23/2026HouseApproved by Governor 2/23/2026
2/23/2026SenateTo Governor 2/17/2026 - Senate Journal
2/19/2026SenateTo Governor 2/17/2026 - House Journal
2/19/2026HouseHouse received Senate message
2/17/2026HouseTo Governor 2/17/2026
2/17/2026SenatePassed House (Roll No. 83)
2/16/2026HouseHouse Message received
2/16/2026SenateHouse amendments reported
2/16/2026SenateTarr amends. to House amends. reported
2/16/2026SenateTarr amendments to House amends. withdrawn by unanimous consent
2/16/2026SenateTarr #1 amends. to House amends rejected (Roll No. 86)
2/16/2026SenateSenate concurred in House amendments and passed bill (Roll No. 87)
2/16/2026SenateEffective from passage (Roll No. 88)
2/16/2026SenateCommunicated to House
2/16/2026SenateCompleted legislative action
2/16/2026SenateOn 3rd reading, Special Calendar
2/13/2026HouseRead 3rd time
2/13/2026HouseTitle amendment adopted (Voice vote)
2/13/2026HouseEffective from passage (Roll No. 84)
2/13/2026HouseCommunicated to Senate
2/13/2026HouseOn 2nd reading, Special Calendar
2/12/2026HouseRead 2nd time
2/12/2026HouseAmendment reported by the Clerk
2/12/2026HouseAmendment adopted (Voice vote)
2/12/2026House
Bill Text
Committee Substitute
Enrolled
Introduced Version
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