The West Virginia Legislature today completed action on Senate Bill 1, the Small Business Growth Act, making it the first piece of legislation that will be sent to Governor Patrick Morrisey for action for the 2026 Regular Session.
SB 1, sponsored by Senate President Randy E. Smith, R-Preston, was designed entirely to help West Virginia small businesses take advantage of a tax credit to secure private investment. The bill incorporates most of House Bill 4003, the West Virginia First Small Business Growth Act, to offer a limited tax credit against the West Virginia Insurance Premium Tax to financial institutions that invest in state-certified growth funds. The Department of Commerce would oversee the program to ensure qualification and compliance.
To qualify for the funds, a business must principally operate in West Virginia, have fewer than 250 employees at the time of application, and have at least 60 percent of their workforce in the state.
“This bill shows our small businesses in West Virginia that we’ve got their backs,” Senate President Smith said. “West Virginia has done great work in the past 10 years with its economic development efforts, but I’ve heard from small business owners across the state that they’re hurting, too, and they also need help. They also could benefit from the same kind of investment that large corporations get. Thanks to the hard work of the House of Delegates, we’ve got a bill that will accomplish that.”
Senate President Smith added that this program is modeled after a successful federal program that currently exists in 18 other states.
“We’ve put in safeguards to ensure the taxpayers are protected and their money will not be wasted on bad investments,” Senate President Smith said. “The program requires a capital investment in West Virginia, and we’re allowing private equity to make those investments in private business.”
Speaker of the House Roger Hanshaw, R-Clay, said he’s eager to see the benefits this bill will bring to West Virginia’s communities.
“I’m really excited about Senate Bill 1 because of the opportunity it will provide exclusively for our small, West Virginia businesses that can benefit from a pool of capital to grow,” Speaker Hanshaw said. “A business in my community that adds five new positions may not make the top story of statewide news, but that is a tangible, lasting impact with ripple effects for our entire economy.”
The 2026 Regular Session ends on Saturday, March 14.
