Coronavirus Aid, Relief and Economic Security (CARES) Act and American Rescue Plan Act


Update: With the passage and signing by Governor Justice of HB 2359 and SB 693, West Virginia has fully conformed with all amendments to federal tax law, which impact West Virginia taxable income, made prior to the following dates:

  • HB 2359. This bill updates the meaning of “federal taxable income” and certain other terms used in the West Virginia Corporation Net Income Tax Act to incorporate federal changes made before January 1, 2021.
  • SB 693. This bill updates the meaning of “federal adjusted gross income” and certain other terms used in the West Virginia Personal Income Tax Act to incorporate federal changes made before March 12, 2021.

This means that West Virginia conforms with changes to the Internal Revenue Code enacted in 2020 and 2021 made by the:

  • Coronavirus Aid, Relief and Economic Security (CARES) Act:
    • The CARES Act allows for a federal corporate NOL carryback of 5 years for those NOL originating after 12/31/2017 and before 1/1/2021.
  • Families First Coronavirus Response Act
  • Setting Every Community Up for Retirement Enhancement (SECURE) Act
  • Consolidated Appropriations Act and
  • American Rescue Plan Act (ARP):
    • ARP exempts the first $10,200 of unemployment compensation from federal adjusted gross income for tax year 2020 for those taxpayers who have a federal adjusted gross income of less than $150,000.
    • An amended West Virginia return would need to be filed if you included your full unemployment compensation in your original Federal Adjusted Gross Income calculation.
    • The 1099-G information must be included to claim this exclusion. For electronically filed original or amended returns, enter the 1099-G information in the appropriate areas. For paper original or amended returns, the 1099-G must be attached.