Senate Bill No. 23
(By Senators Hunter, Sprouse, Redd, Bailey, McKenzie,
Jackson, Mitchell, Caldwell, Unger and Kessler)
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[Introduced January 9, 2002; 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 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; that amend article twenty-four of said chapter be amended
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 taxpayer's 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 taxpayer's 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.