Senate Bill No. 44
(By Senators Jenkins and Plymale)
[Introduced January 12, 2011; referred to the Committee on Finance.]
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 an earned income tax credit from the state personal income tax for certain taxpayers with qualifying children.
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 follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-10b. Earned income tax credit.
(a) A taxpayer with a qualifying child or children is allowed a tax credit equal to twenty percent of the earned income credit allowed under Section 32 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 reduced, the commissioner shall disregard the excess.
(c) When a husband and wife file 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 elect.
(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 September 1.
(f) This section takes effect for taxable years beginning on or after January 1, 2011.
NOTE: The purpose of this bill is to provide an earned income tax credit from the state personal income tax for taxpayers with qualifying children. The earned income tax credit is equal to twenty percent of the federal credit.
This section is new; therefore, strike-throughs and underscoring have been omitted.