# West Virginia HB 4418: Creating “The Tax Efficiency Act of 2026”

West Virginia HB 4418, Creating “The Tax Efficiency Act of 2026”, is a 2026 Regular Session House bill sponsored by David McCormick (Republican); status signed, last action 2026-06-29 (Chapter 283, Acts, Regular Session, 2026) (as of 2026-11-04).

- Canonical: https://policyrisk.com/state-bill/WV-HB4418-2026rs
- As of: 2026-11-04
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: West Virginia HB 4418
- State: West Virginia
- Session: 2026 Regular Session
- Title: Creating “The Tax Efficiency Act of 2026”
- Status: signed
- Chamber: House
- Introduced: 2026-01-16
- Last action: 2026-06-29, Chapter 283, Acts, Regular Session, 2026
- Sponsor: David McCormick (Republican)
- Cosponsors: 7
- Subjects: §8-13-5
- Touches household money: no
- Roll calls: 2 (127 yes, 1 no in all)
- Economic provisions PRIA read: 8

## Summary

No summary available.

## Bill overview: provisions PRIA read

- Cities can give business tax credits: benefit, high. When a city has a business tax, it may grant credits to new or expanding businesses inside its limits. The city decides who qualifies and how much the credit is.
- City tax on new cars ends: benefit, medium. The law cuts, then ends, city business tax on sales of new cars never registered in an individual’s name. Starting July 1, 2023, the tax is cut by 50%. Starting July 1, 2024, it is cut by another 50% of the total tax. Beginning July 1, 2025, the city tax on these sales is eliminated. Automobiles in…
- Fairer rules for city business taxes: benefit, medium. If your business works in more than one West Virginia city, state rules divide income and stop the same income from being taxed twice. New or higher city taxes on contracting work apply only to contracts signed after the tax takes effect. A payment is on time if it is postmarked or submitted throug…
- City tax caps for HMOs: benefit, low. For HMOs with a state certificate, city B&O tax is capped at 0.5% on Medicaid and similar program income used for administrative expenses (not claims or provider payments). It is also capped at 0.5% on enrollee or employer income from nonfederal sources. Income from use of real property is not cove…
- City tax on nonprofit business income: cost, low. Since July 1, 2007, cities may tax income from a charity’s or religious group’s business activities, but only if the IRS taxes that income as unrelated business income. Other charitable income remains outside this city tax.
- City business tax allowed but capped: mixed, medium. The law lets cities tax business activity that the state taxed before July 1, 1987. Cities cannot tax activities the state exempted before that date. City rates cannot be higher than state caps, including 1.0% for some classes and 0.3% for others. These limits keep local B&O taxes within statewide…
- Very low city tax on aircraft repair: mixed, low. Cities may tax aircraft repair, maintenance, modification, and refurbishing done inside city limits. The rate on this activity is capped at 0.10%. This makes the activity taxable but keeps the city tax very small.
- Optional statewide system for city business taxes: mixed, low. The Tax Commissioner runs an optional online system to file and pay city business taxes. Cities choose whether to join and keep audit and collection powers. The system starts only after committed cities together expect over $30 million a year; it then opens on a July 1 at least 12 months after that…

## Sponsors and cosponsors

- Sponsor: David McCormick (Republican), House
- Cosponsor: Ryan Browning (Republican), House
- Cosponsor: Vernon Criss (Republican), House
- Cosponsor: Bob Fehrenbacher (Republican), House
- Cosponsor: Joe Funkhouser (Republican), House
- Cosponsor: Jonathan Kyle (Republican), House
- Cosponsor: Jordan Maynor (Republican), House
- Cosponsor: Clay Riley (Republican), House

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-03-13 | Senate | Passed Senate (Roll No. 535) | pass | 34 | 0 |   |
| 2026-03-04 | House | Passed House (Roll No. 286) | pass | 93 | 1 |   |

## Bill text

- Committee Substitute: [HTML](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1.htm), [PDF](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1.pdf)
- Engrossed: [HTML](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1 eng.htm), [PDF](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1 eng.pdf)
- Enrolled: [HTML](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1 enr.htm), [PDF](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1 enr.pdf)
- Introduced Version: [HTML](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 intr.htm), [PDF](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 intr.pdf)

## Related bills

- HB 4390: Relating to the temporary payment to a kinship parent of a subsidy equal to that of a foster parent (signed)
- HB 4354: Relating to necessity allowance (signed)
- HB 4191: Relating to providing child care generally (became law)
- HB 4106: Allowing constitutional carry for 18- to 20-year-olds (signed)
- HB 4138: Relating to persons convicted of a crime (signed)
- HB 5694: Supplemental appropriation to Department of Education, fund 0313. (signed)

## Sources
- [Committee Substitute (HTML)](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1.htm)
- [Committee Substitute (PDF)](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1.pdf)
- [Engrossed (HTML)](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1 eng.htm)
- [Engrossed (PDF)](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1 eng.pdf)
- [Enrolled (HTML)](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1 enr.htm)
- [Enrolled (PDF)](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 sub1 enr.pdf)
- [Introduced Version (HTML)](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 intr.htm)
- [Introduced Version (PDF)](https://www.wvlegislature.gov/Bill_Text_HTML/2026_SESSIONS/RS/bills/hb4418 intr.pdf)

## Related
- [HB 4390: Relating to the temporary payment to a kinship parent of a subsidy equal to tha…](https://policyrisk.com/state-bill/WV-HB4390-2026rs)
- [HB 4354: Relating to necessity allowance](https://policyrisk.com/state-bill/WV-HB4354-2026rs)
- [HB 4191: Relating to providing child care generally](https://policyrisk.com/state-bill/WV-HB4191-2026rs)
- [HB 4106: Allowing constitutional carry for 18- to 20-year-olds](https://policyrisk.com/state-bill/WV-HB4106-2026rs)
- [HB 4138: Relating to persons convicted of a crime](https://policyrisk.com/state-bill/WV-HB4138-2026rs)
- [HB 5694: Supplemental appropriation to Department of Education, fund 0313.](https://policyrisk.com/state-bill/WV-HB5694-2026rs)
- [West Virginia bills](https://policyrisk.com/states/west-virginia/bills)
- [West Virginia state hub](https://policyrisk.com/states/west-virginia)
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Source: PRIA, https://policyrisk.com/state-bill/WV-HB4418-2026rs (as of 2026-11-04).