H. B. 2186
(By Delegates Amores, Farris, Compton,
Rowe, Facemyer and Jenkins)
[Introduced February 21, 1997; referred to the
Committee on Finance.]
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
eleven; and to amend article twenty-four of said chapter by adding thereto a new section, designated section nine-d, 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 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
eleven; and to amend article twenty-four of said chapter by
adding thereto a new section, designated section nine-d, all to
read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-11. 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
shall be 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 (2)(A) 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 (2)(A) 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 taxpayers' 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 (3)(A) 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
(3)(A) less the amount of moneys received by the taxpayer for use
of the facility for child day care services.
(b) No credit shall be 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 paragraphs (1), (2)(B) and (3)(B)
of subsection (a) 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, one thousand
nine hundred ninety-seven.
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
shall be 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 (2)(A) 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
(2)(A) 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 taxpayers' 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 (3)(A) 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
(3)(A) less the amount of moneys received by the taxpayer for use
of the facility for child day care services.
(b) No credit shall be 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 paragraphs (1), (2)(B) and (3)(B)
of subsection (a) 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, one thousand nine
hundred ninety-seven.
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.