A tax break for parents and guardians of children with autism is quietly expiring under a West Virginia reform bill—and most property owners don't know the deadline.
Buried in HB5364, West Virginia's Reforming Boards and Commissions bill, is a provision that will eliminate a personal income tax deduction many small-business owners and self-employed real estate professionals have relied on. Unless you act before the end of 2026, you'll lose the ability to deduct contributions to qualified autism trusts.
West Virginia currently allows individual taxpayers to deduct up to $1,000 per year (or $2,000 for joint filers) for contributions made to qualified autism trusts. This deduction has provided meaningful tax relief for parents and guardians of children with autism who are also business owners or self-employed—a common situation in real estate and property management.
Effective January 1, 2027, this deduction sunsets. After that date, new contributions to qualified autism trusts will no longer be tax-deductible under West Virginia law. The provision is codified in §11-21-12i(h) and §44-16-7.
The sunset doesn't mean you lose the deduction overnight. Here's the key window: any contributions made on or before December 31, 2026 remain eligible for the deduction. You can also carry forward deductions from prior years if you didn't fully use them.
This means if you're a property manager, real estate investor, or small-business owner with a child with autism, you have roughly one year to make contributions and claim the deduction before the law changes.
This provision matters most to self-employed real estate professionals and small-business owners who are parents or guardians of children with autism. If you file a Schedule C, operate as an LLC, or manage rental properties as a sole proprietor or partnership, this deduction may have reduced your taxable income.
Larger real estate firms with W-2 employees may also have owners or principals affected, depending on their business structure and personal tax situation.
If you currently benefit from this deduction or have been considering establishing a qualified autism trust, the December 31, 2026 deadline is a hard stop. After that date, contributions won't generate a state income tax deduction, even if they did before.
This doesn't affect federal tax treatment—only West Virginia state income tax. It also doesn't change the underlying purpose or function of autism trusts; it only removes the state tax incentive.
If you're affected, review your current contributions and trust arrangements with your tax advisor or CPA before year-end 2026. Confirm whether you've fully utilized the $1,000 (or $2,000 joint) annual deduction and whether you have any carryforward amounts available.
HB5364 was signed into law and the sunset provision is now in effect, with the deduction expiring as written on January 1, 2027.
Source: West Virginia HB5364, §11-21-12i(h) and §44-16-7. For state-specific tax guidance, consult a West Virginia tax professional or your state tax authority.