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Read. Follow. Verify.West Virginia Senate Bill 646 Expands Employer Child Care Tax Credits and Extends Credit Carry-Forward Periods
Last action · February 13, 2026: To FinanceSponsors: Vince Deeds and 2 others
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What This Bill Proposed
Senate Bill 646 increases the employer-provided or sponsored child care tax credit from 50 percent to 100 percent of capital investment and operating costs, eliminates the requirement that child care centers primarily serve sponsoring employers' workers, and extends the credit period to 20 years. The measure applies to personal income tax and corporation net income tax, and allows eligible non-profit corporations to transfer or sell their available tax credits.
West Virginia employers and non-profit organizations providing child care benefits gain larger tax offsets and longer timeframes to use accumulated credits, while third-party providers can receive financial support from employers without meeting strict employee usage ratios.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
West Virginia employers
Employers receive increased tax credit percentages of 100 percent for capital investments and operating costs, as well as an extended 20-year carry-forward period.
Non-profit corporations
Qualified non-profit corporations under IRC §501(c)(3) or §501(c)(6) are granted transferable tax credits that can be sold or assigned to other taxpayers.
Third-party child care providers
Providers receiving financial contributions from employers can operate without strict employee usage ratios or proximity restrictions.
Key Facts
- The aggregate amount of the capital investment tax credit is increased from 50 percent to 100 percent of the cost of qualified child-care property.
- The tax credit for operating costs is increased from 50 percent to 100 percent of the cost of operation to the employer less employee-paid amounts.
- Unused capital investment and operating cost tax credits may be carried forward for 20 years instead of 3 and 5 years.
- Employer-sponsored child care provided by third parties is exempted from proximity or employee usage thresholds.
Show all 8 facts
- Non-profit corporations organized under IRC §501(c)(3) or §501(c)(6) can transfer, sell, or assign their available child care tax credits to other taxpayers.
- The Tax Department must certify the amount of transferable credit available to a non-profit corporation within 90 days of receiving a schedule.
- The requirement that child care facilities primarily serve the children of a sponsoring employer's workforce is eliminated for qualifying third-party arrangements.
- The Tax Commissioner is authorized to promulgate interpretive, legislative, procedural, and emergency rules.
Frequently Asked Questions
What is the new percentage for the employer child care tax credit?
How long can unused tax credits be carried forward under the bill?
Can non-profit organizations benefit from these tax credits?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in Senate committee.
Procedural history
6 actions- Feb 13, 2026SenateCommitteeTo Finance
- Feb 13, 2026SenateCommitteeReported do pass, but first to Finance
- Jan 28, 2026SenateCommitteeTo Economic Development
- Jan 28, 2026SenateIntroducedIntroduced in Senate
- Jan 28, 2026SenateCommitteeTo Economic Development then Finance
- Jan 28, 2026SenateIntroducedFiled for introduction
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Expansion of Child Care Tax Incentives
The legislation shifts state policy from a 50 percent tax credit cap to a 100 percent credit, while removing traditional workplace proximity and employee usage ratio hurdles for third-party providers.
Connected Entities
Sources
www.wvlegislature.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 65)
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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