CHARLESTON, WV (WOWK) — On Saturday, West Virginia Gov. Jim Justice said lawmakers reached a deal on the largest tax cut in state history.

The West Virginia Senate passed a bill that cuts income taxes by 21.25% in the first year. The Senate had originally proposed a 15% tax cut. It will also use a formula to determine additional tax cuts in the following years.

It comes after house republicans backed by Gov. Justice had wanted to cut taxes by 30% in the first year and 10% in each of the following two years.

The bill passed with a 32-1 majority. The bill now goes to the house.

According to Gov. Justice, the deal comes after weeks of negotiations with both parties in the State House and Senate.

“This deal returns over $750 million to hardworking West Virginians through a major cut to our personal income tax, rebate of the car tax, a 50% rebate of the property tax on machinery and inventory to small businesses, and tax credits to West Virginia Veterans.”

Gov. Jim Justice

Gov. Justice also said this is a major step toward eliminating the personal income tax.

“It’s a win-win for all West Virginians and I couldn’t be more pleased with the outcome. … I applaud the House and Senate for all their hard work. I am hopeful that both bodies pass it quickly, so that we can all celebrate its signing together very soon.”

Gov. Jim Justice