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 extend Neighborhood Investment Program Act, and eligibility for tax credits under the act, until July 1, 2011. According to our interpretation, the extension of the Neighborhood Investment Program (beyond the current termination date of July 1, 2008) and the resultant tax credits, will extend the $2 million per year tax credit program for qualified neighborhood investment. Passage of this bill would result in a reduction in the General Revenue Fund of up to $2 million per year for a three-year period. Based upon the likely filing periods for tax returns claiming a tax credit attributable to approvals made during the proposed extension period, the revenue reduction would likely occur in fiscal years 2010, 2011 and 2012. There will be no additional administrative costs to the State Tax Department attributable to passage of this bill. However, the Development Office may incur additional administrative costs associated with passage of this bill.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
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 -2,000,000


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


Passage of this bill would extend Neighborhood Investment Program, which is currently scheduled for termination on July 1, 2008 to July 1, 2011. The extension of the Program and the resultant tax credits, will extend the $2 million per year tax credit program for qualified neighborhood investment. Passage of this bill would result in a reduction in the General Revenue Fund of up to $2 million per year for a three-year period. Based upon the likely filing periods for tax returns claiming a tax credit attributable to approvals made during the proposed extension period, the revenue reduction would likely occur in fiscal years 2010, 2011 and 2012. There will be no additional administrative costs to the State Tax Department attributable to passage of this bill. However, the Development Office may incur additional administrative costs associated with passage of this bill.



Memorandum






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