A personal income tax break for families with autistic children—buried in a recent bill—is set to expire at year-end 2026, and most business owners don't know it's coming.
Most West Virginia real estate and property management owners have never heard of it. But if you're a parent or guardian of a child with autism, you may be using a tax deduction that's about to disappear—and the deadline to act is December 31, 2026.
The provision is hidden inside HB5364, a bill focused on reforming state boards and commissions. Tucked into that legislation is a formal sunset of West Virginia's autism trust tax deduction, effective January 1, 2027.
Under West Virginia Code §11-21-12i(h), paired with §44-16-7, qualifying taxpayers can deduct up to $1,000 per year (single filers) or $2,000 per year (joint filers) for contributions made to a qualified trust established for a child with autism. The deduction also includes a four-year carryforward provision, meaning unused deductions can be applied to future tax years—but only through 2026.
This deduction has allowed small business owners, property managers, and other self-employed individuals to reduce their state taxable income while setting aside funds for a child's long-term care and support.
The impact falls primarily on:
Small business owners and self-employed professionals in real estate and property management who are parents or guardians of a child with autism and have been claiming this deduction on their state tax returns.
Families using special needs trusts to plan for a child's future while protecting eligibility for means-tested benefits.
If you've been using this deduction and carrying forward unused amounts, you need to understand the hard stop coming.
The deduction expires for all tax periods beginning on or after January 1, 2027. This means:
Last year to claim: Tax year 2026 (filed in 2027) is the final opportunity to use the deduction for new contributions and any remaining carryforward amounts.
No extensions: Unlike some tax provisions that phase out gradually, this one ends completely. There is no phase-down period or extension mechanism built into the law.
Planning window: If you have unused carryforward deductions, you have until the end of 2026 to use them. After that, they're gone.
If this deduction applies to your situation, review your tax records to determine whether you've been claiming it and whether you have any unused carryforward amounts. Consider consulting with your tax advisor or accountant about maximizing contributions before the end of 2026 if it makes sense for your family's financial plan.
This provision didn't receive significant public attention when HB5364 passed, which is why many business owners are unaware of it. But the deadline is real, and it's less than two years away.
Source: West Virginia Code §11-21-12i(h) and §44-16-7, as amended by HB5364.