H. B. 2494
(By Delegates Amores and Fleischauer)
[Introduced February 23, 2001; 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
ten-b; 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
ten-b; 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.
§11-21-10b. 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 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 (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.
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 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 (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.
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.