Senate Bill No. 74
(By Senator Hunter)
[Introduced January 8, 2003; referred to the Committee on
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, relating to providing a nonrefundable earned income tax
credit from the state personal income tax.
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,
to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-10b. Earned income tax credit.
(a) A taxpayer with a qualifying child or children is allowed
a tax credit equal to fifteen percent of the earned income credit allowed under section thirty-two of the Internal Revenue Code, as
amended and in effect for the current taxable year.
(b) The credit under this section is allowed against the taxes
imposed by this article for the taxable year reduced by other
credits permitted by this article. If the credit exceeds the tax
as so reduced, the commissioner shall disregard the excess.
(c) In the case of a husband and wife who file their state tax
returns separately, the credit allowed pursuant to this section may
be applied against the tax of either, or divided between them, as
(d) The commissioner shall make efforts every year to alert
taxpayers who may be eligible to receive the credit provided under
this section. In making a determination as to whether a taxpayer
may be eligible for the credit, the commissioner shall use data as
may be appropriate and available, including, but not limited to,
data available from the United States department of treasury, the
Internal Revenue Service, and state income tax returns from
preceding tax years.
(e) The commissioner shall prepare a written report each year
which shall contain statistical information regarding the credits
granted for the prior calendar year. The reports shall contain,
but need not be limited to, the total amount of revenue expended on
the earned income credit; the number of credits claimed; and the
average value of the credits granted to taxpayers whose earned income falls within various income ranges. The report shall be
forwarded to the joint committee on government and finance by the
first day of September.
(f) This section takes effect for taxable years beginning on
or after the first day of January, two thousand three.
NOTE: The purpose of this bill is to provide a nonrefundable
earned income tax credit from the state personal income tax for
taxpayers with qualifying children. The earned income tax credit
is equal to 15% of the federal credit.
This section is new; therefore, strike-throughs and
underscoring have been omitted.