27/07/2026
The devastating floods that have struck West Virginia require everyone able to pitch in for recovery, and thankfully our tax code incentivizes this assistance.
Thanks to the West Virginia Legislature passing the West Virginia Disaster Repair and Recovery Tax Credit Act (for more information, see West Virginia Code §11-13OO et seq.), many of our state’s corporations can receive tax benefits for their disaster recovery assistance. This year, the Legislature implemented this credit to incentivize the private sector “to provide the necessary equipment, materials, services, and labor to promptly complete such repair and recovery efforts,” and thus to “reduce[] the amount of time it takes for communities to cleanup, repair, and recover from disasters in this state.”
If a corporation pays severance tax, a 5% tax on the extraction of natural resources (specifically on coal and on oil and natural gas), it can write off the expenses it incurs in assisting with recovery. Work eligible for this credit includes cleanup assistance and debris removal, ground repair, reconstruction projects, providing supplies, and much more. The credit also covers the cost of operating machinery.
The total amount of credit allowed is $500,000 gross and can be refunded at a maximum of 20 percent of an entity’s annual severance tax liability for up to nine taxable years. Large contributions to helping our communities get back on their feet could result in years-long tax write-offs.
As your Chief Business Official, I will do everything in my power to ensure that our state’s businesses know about this opportunity. But I need your help. Please spread the word about this opportunity to anyone you know who works at a business that pays severance taxes.
When we work together, we show why West Virginia is truly the greatest state in the country!
