Senate Bill No. 41

(By Senator Whitlow, By Request)

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[Introduced February 10, 1993;

referred to the Committee on Finance.]

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A BILL to amend article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section twenty-one, relating to granting a credit against personal income tax for any resident individual who purchases or constructs a home, or who purchases a newly constructed home for the purpose of living in such home; stating amount of credit; and providing that double credit is not allowed for purchase and resale.

Be it enacted by the Legislature of West Virginia:
That article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section twenty-one, to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.

§11-21-21. Credit against tax for purchase or construction of home; amount; double credit prohibited.

A credit shall be allowed against the tax imposed by section three of this article for any resident individual who purchases or constructs a home, or who purchases a newly constructed home, for the purpose of living in such home. The credit shall be equal to the smaller of the following amounts:
(1) Two thousand dollars; or
(2) One hundred percent of the individual's annual compensation (earned income) that is includible in his or her gross income.
An individual may not claim both a credit under this section and a credit under law in effect as of the effective date of this section for the purchase and resale of a home.



NOTE: This bill would grant a credit against personal income tax for any resident individual who purchases or constructs a home, or who purchases a newly constructed home for residential purposes. The credit would be equal to that allowed for a federal tax deduction for an individual who has contributed to an individual retirement account.

Section 21 is new; therefore, strike-throughs and underscoring have been omitted.