| Date Requested:February 16, 2009 Time Requested:04:54 PM |
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| FUND(S) General Revenue Fund | |||
|---|---|---|---|
Sources of Revenue | |||
| General Fund | |||
Legislation creates:
Neither Program nor Fund | |||
Effect this measure will have on costs and revenues of state government.
| The stated 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.
Passage of this bill would result in a $7.3 million loss to the General Revenue Fund in fiscal year 2010. The loss would expand each year until reaching $84 million upon full implementation in fiscal year 2018. If all returns claiming the credit for payments made on student loans are accepted as filed, there would be minimal additional administrative costs to the State Tax Department. |
| Over-all effect |
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2009 Increase/Decrease (use"-") |
2010 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 | -7,300,000 | -84,000,000 |
|
3. Explanation of above estimates (including long-range effect):
The stated 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.
Passage of this bill would result in a $7.3 million loss to the General Revenue Fund in fiscal year 2010. The loss would expand each year until reaching $84 million upon full implementation in fiscal year 2018. If all returns claiming the credit for payments made on student loans are accepted as filed, there would be minimal additional administrative costs to the State Tax Department. |
| The stated 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.
The bill indicates that Internal Revenue Service Form 1098-E shall be used to provide the necessary information relating to the identity of the graduate claiming the credit and the qualified student loan interest amount. The information appearing on the referenced form only includes this information and does not include any information on the total payments made on student loans. Also, the proposed bill does not restrict the credit to graduates of West Virginia institutions of higher learning. |