Senate 1058

WEST VIRGINIA LEGISLATURE

2026 REGULAR SESSION

Introduced

Senate Bill 1058

By Senator Rose

[Introduced February 21, 2026; referred
to the Committee on Economic Development; and then to the Committee on Finance]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding a new article, designated §11-13NN-1, §11-13NN-2, §11-13NN-3, §11-13NN-4, §11-13NN-5, §11-13NN-6, §11-13NN-7, §11-13NN-8, §11-13NN-9, §11-13NN-10, §11-13NN-11, §11-13NN-12, §11-13NN-13, and §11-13NN-14, relating to creating the  Economic Freedom Zones Act grounded in equal treatment under law; and providing a broad-based tax reduction, regulatory simplification, and fiscal neutrality.

Be it enacted by the Legislature of West Virginia:

ARTICLE 13NN. ECONOMIC FREEDOM ZONES ACT.

§11-13NN-1. Short title.

This article shall be known and may be cited as the "Economic Freedom Through Equal Treatment Act."

§11-13NN-2. Legislative findings and intent.

(a) The Legislature finds that:

(1) Economic growth is best achieved through equal application of law, low taxation, protection of private property, and limited government;

(2) Targeted subsidies and selective incentives distort markets and promote cronyism; and

(3) Regulatory barriers disproportionately harm small and startup businesses.

(b) It is the intent of this article to remove barriers to voluntary exchange and entrepreneurship in distressed areas without creating preferential treatment for specific industries or firms.

§11-13NN-3. Definition.

For the purposes of this article:

"Department" means the West Virginia Department of Economic Development.

"Distressed area" means a census tract with:

(A) An unemployment rate at least 150 percent of the statewide average;   

(B) A poverty rate of at least 20 percent.

"Qualified taxpayer" means any individual or lawful business entity physically operating within a Zone.

"Zone" means a geographic area designated pursuant to this article.

§11-13NN-4. Zone designation; legislative approval required.

(a) No zone may be designated except by act of the Legislature.

(b) No more than five zones may exist statewide at any time.

(c) Designation shall expire after eight years unless renewed by legislative act.

(d) No executive agency may expand or modify zone boundaries without legislative approval.

§11-13NN-5. Broad-based tax rate reductions.

(a) For income derived from within a zone:

(1) The corporate net income tax rate shall be reduced by 50 percent; and

(2) The personal income tax rate applicable to sole proprietors and pass-through business income shall be reduced by 50 percent.

(b) Reductions apply uniformly to all qualified taxpayers and shall not be conditioned upon job creation quotas, industry type, or political approval.

(c) No refundable credits shall be permitted under this article.

§11-13NN-6. Revenue neutrality safeguard.

(a) The State Tax Commissioner shall annually certify the aggregate fiscal impact of this article.

(b) If total foregone revenue exceeds 0.5 percent of General Revenue Fund collections in any fiscal year, rate reductions shall be proportionally adjusted for the following tax year to maintain fiscal neutrality.

(c) No borrowing or bonded indebtedness may be issued to finance this article.

§11-13NN-7. Regulatory reduction requirements.

(a) For each new state administrative rule applicable within a zone, two existing rules of equivalent economic burden shall be repealed statewide.

(b) State agencies shall complete permit reviews for qualified taxpayers  within 30 days.

(c) Failure to act within 30 days shall result in automatic approval, except where prohibited by federal law.

§11-13NN-8. Occupational licensing reciprocity.

(a) Any individual licensed in another state shall be recognized as licensed in this state for purposes of working within a zone, unless federal law requires otherwise.

(b) No new occupational licensing requirement may be imposed within a zone unless approved by a two-thirds vote of the Legislature.

§11-13NN-9. Protection of private property.

(a) No property within a zone may be taken by eminent domain for the purpose of economic development or transfer to a private entity.

(b) Any regulatory action reducing property value by more than 25 percent shall require just compensation.

§11-13NN-10. Equal treatment clause.

Benefits under this article shall apply equally to all lawful businesses and individuals within a zone and shall not be awarded based on industry, political contribution, or negotiated agreement.

§11-13NN-11. Transparency.

(a) The Department shall publish an annual report detailing:

(1) Total tax reductions;

(2) Changes in employment levels; and

(3) Net migration into zones.

(b) No confidential business data shall be disclosed.

§11-13NN-12. Prohibition on corporate subsidies.

Nothing in this article shall authorize grants, loans, loan guarantees, tax increment financing, or cash subsidies to any private entity.

§11-13NN-13. Severability.

If any provision of this article is held invalid, the remaining provisions shall remain in full force and effect.

§11-13NN-14. Sunset.

This article shall terminate July 1, 2035, unless reauthorized by act of the Legislature.

NOTE: The purpose of this bill is to remove barriers to voluntary exchange and entrepreneurship in distressed areas without creating preferential treatment for specific industries or firms.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.