Senate committee backs Small Business Growth Act, sends substitute to full Senate
February 02, 2026 | 2026 Legislature WV, West Virginia
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Charleston — The West Virginia Senate Finance Committee on Tuesday agreed to a committee substitute for Senate Bill 1, the "Small Business Growth Act," and reported the measure to the full Senate with a recommendation that it pass.
Counsel told the committee the bill would establish the Small Business Growth Act within the Department of Commerce to allow growth funds seeking equity investments in small businesses to apply for approval to raise capital in the state. "This bill would create the Small Business Growth Act within the Department of Commerce," counsel said during the committee explanation.
Under the substitute the department would certify a project’s capital investments authority and a schedule of insurance premium tax credits. Counsel said the credits are capped at $15,000,000 per calendar year, excluding any carry-forward amounts, and that an investor’s credit would not be available until three years after the initial investment. The substitute also sets a $5,000 nonrefundable application fee, limits claims to a growth fund’s insurance premium tax liability for a year with a five-year carryforward, and includes recapture and reapplication provisions.
Senator from Harrison praised the approach as private capital with guardrails, saying: "This is not government picking winners and losers. This is private money taking private risk with a few guardrails and accountability." He urged the committee to support the substitute and expressed hope for a unanimous floor vote.
Committee members held no recorded roll-call vote; the chair called for a voice vote and declared the ayes had it. The vice chairman moved that the committee substitute be reported to the full Senate with a recommendation that it do pass.
Fiscal notes filed with the committee projected the cost of the tax credit at $15,000,000 and estimated Department of Commerce costs of about $500,000, though counsel noted those fiscal effects would be realized after the three-year delay before credits are claimable under the bill.
The committee’s action sends the substitute to the full Senate for further consideration. No amendments were adopted in committee.
Counsel told the committee the bill would establish the Small Business Growth Act within the Department of Commerce to allow growth funds seeking equity investments in small businesses to apply for approval to raise capital in the state. "This bill would create the Small Business Growth Act within the Department of Commerce," counsel said during the committee explanation.
Under the substitute the department would certify a project’s capital investments authority and a schedule of insurance premium tax credits. Counsel said the credits are capped at $15,000,000 per calendar year, excluding any carry-forward amounts, and that an investor’s credit would not be available until three years after the initial investment. The substitute also sets a $5,000 nonrefundable application fee, limits claims to a growth fund’s insurance premium tax liability for a year with a five-year carryforward, and includes recapture and reapplication provisions.
Senator from Harrison praised the approach as private capital with guardrails, saying: "This is not government picking winners and losers. This is private money taking private risk with a few guardrails and accountability." He urged the committee to support the substitute and expressed hope for a unanimous floor vote.
Committee members held no recorded roll-call vote; the chair called for a voice vote and declared the ayes had it. The vice chairman moved that the committee substitute be reported to the full Senate with a recommendation that it do pass.
Fiscal notes filed with the committee projected the cost of the tax credit at $15,000,000 and estimated Department of Commerce costs of about $500,000, though counsel noted those fiscal effects would be realized after the three-year delay before credits are claimable under the bill.
The committee’s action sends the substitute to the full Senate for further consideration. No amendments were adopted in committee.
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