WV HB2523

Allows West Virginia residents a credit against state personal income tax for income taxes paid to foreign countries, in addition to the existing credit for taxes paid to other U.S. states and the District of Columbia

Credit for foreign income tax applies only when the taxpayer demonstrates to the Tax Commissioner that double taxation would occur after federal tax provisions are applied

Credit is limited to the proportion of West Virginia tax attributable to income taxed by the foreign jurisdiction and cannot reduce tax below what would be owed if foreign income were excluded

No credit is allowed for taxes paid to jurisdictions that offer West Virginia residents a substantially similar reciprocal credit

The foreign income tax credit provision expires July 1, 2070