FISCAL NOTE
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to authorize tax credits of up to two million dollars for qualified economic development and technology advancement centers during the fiscal year beginning on July 1, 2005, and to authorize the Economic Development Authority to adopt criteria to aid in its determination of the extent to which the applicants for credits will fulfill the purposes of the Capital Company Act.
According to our interpretation, passage of this bill would result in a reduction in General Revenue Fund collections of up to $2 million in Fiscal Year 2005-2006. The Governor’s budget proposal includes $0 in capital company credit authorizations in Fiscal Year 2005-2006.
There would be no additional administrative costs for the Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-2,000,000 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would result in a reduction in General Revenue Fund collections of up to $2 million in Fiscal Year 2005-2006. The provisions of the bill would authorize up to $2 million in tax credits for investment in qualified economic development and technology advancement centers in Fiscal Year 2005-2006. Investors in qualified economic development and technology advancement centers receive a 100% tax credit. However, the Governor’s budget proposal includes $0 in capital company credit authorizations in Fiscal Year 2005-2006.
There would be no additional administrative costs for the Tax Department.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us