Sources of Revenue:

General Fund,Special Fund,Other Fund see above

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 create a tax credit for apprenticeship training in construction trades. This bill, as written, would provide a tax credit in an amount equal to $4.00 per hour multiplied by the total number of hours worked by apprentices in the construction trades, provided that the credit allowed with respect to each apprentice may not exceed $5,000 or 50 percent of actual wages paid, whichever is less. Also, as written, the credit would be available to offset any tax imposed in Chapter 11 of the West Virginia Code. The bill defines a qualified apprenticeship training program as a program requiring at least 2,000 hours, but not more than 10,000 hours, of on the job apprenticeship training for certification by the United States Bureau of Apprenticeship and Training. The State Tax Department has neither information on the number of qualifying apprenticeships nor the wages paid to the apprentices. Thus, we are unable to estimate the potential revenue impact of this bill. If all returns with the tax credit are accepted as filed, there would be no additional administrative costs to the State Tax Department. However, the application of the tax credit to certain taxes administered by the State Tax Department may result in additional administrative costs.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2007 Increase/Decrease (use"-")	2008 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	0	0

Explanation of above estimates (including long-range effect):

Passage of this bill would provide a tax credit in an amount equal to $4.00 per hour multiplied by the total number of hours worked by apprentices in the construction trades, provided that the credit allowed with respect to each apprentice may not exceed $5,000 or 50 percent of actual wages paid, whichever is less. Also, as written, the credit would be available to offset any tax imposed in Chapter 11 of the West Virginia Code. The bill defines a qualified apprenticeship training program as a program requiring at least 2,000 hours, but not more than 10,000 hours, of on the job apprenticeship training for certification by the United States Bureau of Apprenticeship and Training. The State Tax Department has neither information on the number of qualifying apprenticeships nor the wages paid to the apprentices. Thus, we are unable to estimate the potential revenue impact of this bill. If all returns with the tax credit are accepted as filed, there would be no additional administrative costs to the State Tax Department. However, the application of the tax credit to certain taxes administered by the State Tax Department may result in additional administrative costs.

Memorandum

The stated purpose of this bill is to create a tax credit for apprenticeship training in construction trades. As written, the bill calls for “a credit for any taxpayer against the tax imposed under this chapter.” Since the chapter reference is to Chapter 11 of the West Virginia Code, the chapter dealing with most taxation, the credit may have broader application than intended.

Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us