HB5364: West Virginia Autism Trust Tax Deduction Expires in 2027

Buried in HB5364 (Reforming Boards and Commissions) is a provision that will affect small business owners in real estate and property management who are parents or guardians of children with autism. The autism trust tax deduction—currently available to eligible owners—has a hard sunset date of December 31, 2026.

What the Deduction Does Today

Under West Virginia Code §11-21-12i(h) and §44-16-7, certain small business owners can claim an annual tax deduction for contributions made to a qualifying autism trust. The deduction works as a decreasing modification against West Virginia personal income tax:

• Single filers: up to $1,000 per year
• Joint filers: up to $2,000 per year

This applies to sole proprietors, partners in partnerships, and S-corporation shareholders who are parents or guardians of a child with autism and who make qualifying contributions to an autism trust.

The Sunset: What Changes and When

HB5364 codifies an expiration date for this deduction. For tax years beginning on or after January 1, 2027, the deduction will no longer be available. This means:

• The last tax year for which this deduction can be claimed is 2026 (filed in 2027)
• Contributions made after December 31, 2026 will not qualify for the deduction
• No deduction is available for any tax period beginning January 1, 2027 or later

Who This Affects

This provision specifically impacts real estate and property management business owners who structure their operations as sole proprietorships, partnerships, or S-corporations and who support a child with autism through a qualifying trust. Owners who have been using this deduction to offset business income should plan accordingly.

C-corporation owners and W-2 employees are not affected by this deduction, as it applies only to pass-through business structures and self-employed individuals.

What Property Owners Should Do Now

If you currently claim this deduction, you have approximately one year to:

• Verify your trust qualifies under the statute
• Confirm you're claiming the maximum allowable amount through 2026
• Plan for the loss of this deduction in your 2027 tax year and beyond
• Consult with a tax professional about alternative strategies for supporting your child's care after the deduction expires

The deduction will not automatically disappear from your return—you'll need to stop claiming it after 2026. Missing this change could result in errors on future filings.

The Bigger Picture

While HB5364's primary focus is reforming state boards and commissions, this tax provision was included in the final bill. The sunset is now law, making this a firm deadline rather than a temporary measure subject to renewal.

Property and real estate management professionals who rely on every available deduction should mark their calendars and discuss this change with their accountants or tax advisors before year-end 2026.

Source: West Virginia Code §11-21-12i(h) and §44-16-7, as amended by HB5364.