Senate Bill No. 124
(By Senator Hunter)
[Introduced February 9, 2005; referred to the Committee
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-21-10b, to read as
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-10b. Earned income tax credit.
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-21-10b, relating
to providing a nonrefundable earned income tax credit from the
state personal income tax for certain taxpayers with
(a) A taxpayer with a qualifying child or children is allowed
a tax credit equal to fifteen percent of the earned income credit
allowed under section thirty-two of the Internal Revenue Code, as amended and in effect for the current taxable year.
(b) The credit under this section is allowed against the taxes
imposed by this article for the taxable year reduced by other
credits permitted by this article. If the credit exceeds the tax
as so reduced, the Commissioner shall disregard the excess.
(c) When a husband and wife files their state tax returns
separately, the credit allowed pursuant to this section may be
applied against the tax of either, or divided between them, as they
(d) The Commissioner shall make efforts every year to alert
taxpayers who may be eligible to receive the credit provided under
this section. In making a determination as to whether a taxpayer
may be eligible for the credit, the Commissioner shall use data as
may be appropriate and available, including, but not limited to,
data available from the United States Department of Treasury, the
Internal Revenue Service, and state income tax returns from
preceding tax years.
(e) The Commissioner shall prepare a written report each year
which shall contain statistical information regarding the credits
granted for the prior calendar year. The reports shall contain,
but need not be limited to, the total amount of revenue expended on
the earned income credit; the number of credits claimed; and the
average value of the credits granted to taxpayers whose earned
income falls within various income ranges. The report shall be forwarded to the Joint Committee on Government and Finance by the
first day of September.
(f) This section takes effect for taxable years beginning on
or after the first day of January, two thousand five.
NOTE: The purpose of this bill is to provide a nonrefundable
earned income tax credit from the state personal income tax for
taxpayers with qualifying children. The earned income tax credit
is equal to 15% of the federal credit.
This section is new; therefore, strike-throughs and
underscoring have been omitted.