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 raise the tax credit for nonfamily adoptions from $2,000 to $4,000.
According to our interpretation and since the proposal did not specify an effective date, the increase in the credit for nonfamily adoption from $2,000 to $4,000 would be effective for adoptions occurring on or after 90 days from passage and be available to offset tax liability for tax years beginning on or after January 1, 2010. Based upon information from current nonfamily adoption credit claims, the increase in the credit amount will result in a reduction in the General Revenue Fund of roughly $250,000 per year beginning in FY2011.
There would be no additional administrative costs to the State Tax Department associated with passage of this bill.
Fiscal Note Detail
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 |
0 |
-250,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would increase the credit for nonfamily adoption from $2,000 to $4,000 effective for adoptions occurring on or after 90 days from passage and be available to offset tax liability for tax years beginning on or after January 1, 2010. Based upon information from current nonfamily adoption credit claims, the increase in the credit amount will result in a reduction in the General Revenue Fund of roughly $250,000 per year beginning in FY2011.
There would be no additional administrative costs to the State Tax Department associated with passage of this bill.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us