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Introduced Version Senate Bill 134 History

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sb134 intr
Senate Bill No. 134

(By Senator Hunter)

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[Introduced February 9, 2005; referred to the Committee

on Finance.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-21-10b; and to amend said code by adding thereto a new section, designated §11-24-9d, all relating to allowing a credit against corporate and personal income tax for employers who provide child day care services for their employees.

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; and to amend said code by adding thereto a new section, designated §11-24-9d, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-10b. Credit for child day care assistance.
(a) Any taxpayer that pays for or provides child day care services, including the provision of the service of locating child day care services, to its employees or that provides facilities and necessary equipment for child day care services is allowed a credit against income tax imposed by this article as follows:
(1) Forty percent of the total amount expended in the State during the taxable year by a taxpayer for child day care services purchased to provide care for the dependent children of the taxpayer's employees or for the provision of the service of locating day care services for employees' dependent children;
(2) (A) In the taxable year in which a facility providing child day care services in the State for use primarily by the dependent children of the taxpayer's employees is established, sixty percent of the total amount expended during the year by a taxpayer in the establishment and operation of the day care facility;
(B) In the taxable years other than the taxable year to which paragraph (A), subdivision (2), subsection (a) of this section applies, forty percent of the amount equal to the total amount expended during the taxable year by a taxpayer for the operation of a facility described in paragraph (A), subdivision (2), subsection (a) of this section less the amount of moneys received by the taxpayer for the use of the facility for child day care services;
(3) (A) In the taxable year in which a facility providing child day care services in the State for use primarily by the dependent children of the taxpayer's employees is established in conjunction with one or more other taxpayers, sixty percent of the total amount expended during the year by a taxpayer in the establishment and operation of the day care facility;
(B) In the taxable years other than the taxable year to which paragraph (A), subdivision (3), subsection (a) of this section applies, forty percent of the amount equal to the total amount expended during the taxable year by a taxpayer for the operation of a facility described in paragraph (A), subdivision (3), subsection (a) of this section less the amount of moneys received by the taxpayer for use of the facility for child day care services.
(b) No credit is allowed under this section unless the child day care facility or provider is licensed or registered pursuant to West Virginia law.
(c) The credit allowed by paragraph (B), subdivisions (1), (2) and (3), subsection (a) of this section may not exceed sixty-five thousand dollars for any taxpayer during any taxable year. The amount of the credit which exceeds the tax liability for a taxable year shall be refunded to the taxpayer. If the taxpayer is a partnership, the credit provided by this section shall be claimed by the partners of the partnership in the same manner as partners account for their proportionate shares of the income or loss of the partnership.
(d) The aggregate amount of credits claimed under this section and section nine-d, article twenty-four of this chapter for any fiscal year may not exceed four million dollars.
The provisions of this section apply to all taxable years commencing after the thirty-first day of December, two thousand five.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-9d. Credit for child day care assistance.
(a) Any taxpayer that pays for or provides child day care services, including the provision of the service of locating child day care services, to its employees or that provides facilities and necessary equipment for child day care services is allowed a credit against income tax imposed by this article as follows:
(1) Forty percent of the total amount expended in the State during the taxable year by a taxpayer for child day care services purchased to provide care for the dependent children of the taxpayer's employees or for the provision of the service of locating day care services for employees' dependent children;
(2) (A) In the taxable year in which a facility providing child day care services in the State for use primarily by the dependent children of the taxpayer's employees is established, sixty percent of the total amount expended during the year by a taxpayer in the establishment and operation of the day care facility;
(B) In the taxable years other than the taxable year to which paragraph (A), subdivision (2), subsection (a) of this section applies, forty percent of the amount equal to the total amount expended during the taxable year by a taxpayer for the operation of a facility described in paragraph (A), subdivision (2), subsection (a) of this section less the amount of moneys received by the taxpayer for the use of the facility for child day care services;
(3) (A) In the taxable year in which a facility providing child day care services in the State for use primarily by the dependent children of the taxpayer's employees is established in conjunction with one or more other taxpayers, sixty percent of the total amount expended during the year by a taxpayer in the establishment and operation of the day care facility;
(B) In the taxable years other than the taxable year to which paragraph (A), subdivision (3), subsection (a) of this section applies, forty percent of the amount equal to the total amount expended during the taxable year by a taxpayer for the operation of a facility described in paragraph (A), subdivision (3), subsection (a) of this section less the amount of moneys received by the taxpayer for use of the facility for child day care services.
(b) No credit is allowed under this section unless the child day care facility or provider is licensed or registered pursuant to West Virginia law.
(c) The credit allowed by paragraph (B), subdivisions (1), (2) and (3), subsection (a) of this section may not exceed sixty-five thousand dollars for any taxpayer during any taxable year. The amount of the credit which exceeds the tax liability for a taxable year shall be refunded to the taxpayer. If the taxpayer is a corporation having an election in effect under subchapter (S) of the federal Internal Revenue Code, the credit provided by this section shall be claimed by the shareholders of the corporation in the same manner as shareholders account for their proportionate shares of the income or loss of the corporation.
(d) The aggregate amount of credits claimed under this section and section eleven, article twenty-one of this chapter for any fiscal year may not exceed four million dollars.
The provisions of this section apply to all taxable years commencing after the first day of December, two thousand five.

NOTE: The purpose of this bill is to give a tax credit to employers who provide or pay for child day care services for their employees' dependent children.

These sections are new; therefore, strike-throughs and underscoring have been omitted.

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