Senate Bill No. 97
(By Senator Cann)
[Introduced February 13, 2013; referred to the Committee on
Education; and then to the Committee on Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-21-10b, relating
to personal income tax; and enacting the College Graduate Tax
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-21-10b, to read as
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-10b. College Graduate Tax Credit.
(a) A credit shall be allowed against the tax imposed by this
article equal to the amount of principal and interest paid by
graduates of qualified institutions of higher learning for repayment of qualified student loans used to pay for qualified
education expense incurred to attend qualified institutions of
higher learning. This credit is available for taxpayers graduating
on or after January 1, 2014, and is applied in the year of
graduation from a qualified institution of higher learning and for
the next succeeding nine tax years following graduation from a
qualified institution of higher learning. The annual tax credit
authorized by this section is equal to the lesser of one tenth of
the principal amount of the graduate's qualified student loans plus
interest paid in the tax year or the amount of principal and
interest paid during the tax year but shall not exceed the
taxpayer's personal income tax liability as calculated under the
provisions of this article for the tax year for which the credit is
claimed. Any annual credit remaining after application of the
credit in any tax year may not be carried-over to another
succeeding tax year nor carried-back to a prior tax year but is
forfeited. Only qualified student loans used to obtain a
baccalaureate degree, a graduate degree or a professional degree
from a qualified institution of higher learning are eligible for
the credit allowed by this section. Only qualified student loans
with interest liability of $600 or more annually are eligible for the credit allowed by this section. Only the individual graduate
is eligible for the credit allowed by this section.
(1) "Graduate" means a graduate of a qualified institution of
higher learning who has been awarded a baccalaureate degree, a
graduate degree or a professional degree by the qualified
institution of higher learning.
(2) "Qualified education expense" means the cost of tuition
and fees, room and board, books and necessary supplies and
equipment directly related to the course of education pursued at a
qualified institution of higher learning.
(3) "Qualified institution of higher learning" means an
institution that instructs students and awards baccalaureate
degrees, graduate degrees or professional degrees and which holds
accreditation by an accrediting agency or association determined by
the United States Secretary of Education, under section one
thousand ninety-nine-b, title twenty, United States Code, to be a
reliable authority for accreditation.
(4) "Qualified student loan" means a loan taken out in the
name of the taxpayer claiming the credit authorized by this section
and used solely to pay qualified education expenses for education
resulting in the award of a baccalaureate degree, a graduate degree or a professional degree by a qualified institution of higher
(c) Administration: For purposes of administering the
provisions of this section, Internal Revenue Service Form 1098E is
used to provide the necessary information relating to the identity
of the graduate claiming the credit and the qualified student loan
interest amount. The Tax Commissioner may prescribe such other
forms, schedules, returns or filings as the Tax Commissioner may
deem appropriate for claims of this credit.
NOTE: The purpose of this bill is to provide for a credit
against West Virginia personal income tax liability in the amount
of payments made on student loans.
§11-21-10b is new; therefore, strike-thoughs and underscoring
have been omitted.