H. B. 4678
(By Delegate Proudfoot, By Request)
[Introduced February 27, 1998; 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-a; 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 and private preschool 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-a; 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.
§11-21-11a. Credit for child day care and private preschool
assistance.
(a) Any taxpayer that pays for or provides child day care or
private preschool services, including the provision of the
service of locating child day care or private preschool services,
to its employees or that provides facilities and necessary
equipment for child day care or private preschool 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 or
private preschool 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 or private
preschool services for employees' dependent children;
(2) (A) In the taxable year in which a facility providing
child day care or private preschool 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 or private preschool facility;
(B) In the taxable years other than the taxable year to
which subdivision (2)(A) above 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
subdivision (2)(A) above, less the amount of moneys received by
the taxpayer for the use of the facility for child day care or
private preschool services;
(3) (A) In the taxable year in which a facility providing
child day care or private preschool 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 or
private preschool facility;
(B) In the taxable years other than the taxable year to
which subdivision (3)(A) above 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
subdivision (3)(A) above, less the amount of moneys received by
the taxpayer for use of the facility for child day care or
private preschool services.
(b) No credit may be allowed under this section unless the
child day care or private preschool facility or provider is
licensed or registered pursuant to West Virginia law.
(c) The credit allowed by subdivisions (1), (2)(B) and
(3)(B) of 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, one thousand
nine hundred ninety-eight.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-9d. Credit for child day care or private preschool
assistance.
(a) Any taxpayer that pays for or provides child day care or
private preschool services, including the provision of the
service of locating child day care or private preschool services,
to its employees or that provides facilities and necessary
equipment for child day care or private preschool 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 or
private preschool 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 or private
preschool services for employees' dependent children;
(2) (A) In the taxable year in which a facility providing
child day care or private preschool 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 or private preschool facility;
(B) In the taxable years other than the taxable year to
which subdivision (2)(A) above 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
subdivision (2)(A) above less the amount of moneys received by
the taxpayer for the use of the facility for child day care or
private preschool services;
(3) (A) In the taxable year in which a facility providing
child day care or private preschool 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 or
private preschool facility;
(B) In the taxable years other than the taxable year to
which subdivision (3)(A) above 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
subdivision (3)(A) above, less the amount of moneys received by
the taxpayer for use of the facility for child day care or
private preschool services.
(b) No credit may be allowed under this section unless the
child day care or private preschool facility or provider is
licensed or registered pursuant to West Virginia law.
(c) The credit allowed by subdivisions (1), (2)(B) and
(3)(B) of 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, one thousand nine
hundred ninety-eight.
NOTE: The purpose of this bill is to give a tax credit to
employers who provide or pay for child day care or private
preschool services for their employees' dependent children.
These sections are new; therefore, strike-throughs and
underscoring have been omitted.