Date Requested:January 22, 2010
Time Requested:01:54 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2010R1406 Introduced HB4162
CBD Subject: SAWMILL "GREEN" BUILDING PARTICIPATION
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 provide a tax credit for obtaining certain certifications by the United States Green Building Council Leadership in Energy and Environmental Design (LEED) green building rating system or the Green Globes Building Initiative green building rating standard. The bill sets forth the amount of the credit, who may take the credit, the criteria for taking the credit and the amount of the credit. The bill also provides rulemaking authority and defines terms.
    
    As written, this bill would provide a credit equal to the cost of becoming certified by the United States Green Building Council Leadership in Energy and Environmental Design (LEED) green building rating system or the Green Globes Building Initiative green building rating standard. While the credit would be limited to sawmills, wood product manufacturers, and concentration yards that have their product certified and to certified timberland and tree farms, there is no apparent limit on the amount of credit that could be claimed by a qualifying taxpayer. The credit may be applied against the taxpayer’s Corporation Net Income Tax, Business Franchise Tax, and Personal Income Tax, if applicable. Potential credit claimants must file a written application with the State Tax Commissioner before any credit may be claimed. The State Tax Department does not have sufficient data on the sawmills, wood product manufacturers, concentration yards, timberlands and tree farms that would potentially qualify for the credit to estimate the potential revenue impact of this proposed credit.
    
    Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2010
Increase/Decrease
(use"-")
2011
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
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would provide a credit equal to the cost of becoming certified by the United States Green Building Council Leadership in Energy and Environmental Design (LEED) green building rating system or the Green Globes Building Initiative green building rating standard. While the credit would be limited to sawmills, wood product manufacturers, and concentration yards that have their product certified and to certified timberland and tree farms, there is no apparent limit on the amount of credit that could be claimed by a qualifying taxpayer. The credit may be applied against the taxpayer’s Corporation Net Income Tax, Business Franchise Tax, and Personal Income Tax, if applicable. Potential credit claimants must file a written application with the State Tax Commissioner before any credit may be claimed. The State Tax Department does not have sufficient data on the sawmills, wood product manufacturers, concentration yards, timberlands and tree farms that would potentially qualify for the credit to estimate the potential revenue impact of this proposed credit.
    
    Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    The stated purpose of this bill is to provide a tax credit for obtaining certain certifications by the United States Green Building Council Leadership in Energy and Environmental Design (LEED) green building rating system or the Green Globes Building Initiative green building rating standard. The bill sets forth the amount of the credit, who may take the credit, the criteria for taking the credit and the amount of the credit. The bill also provides rulemaking authority and defines terms.
    
    As written, the bill uses a number of terms (e.g., “sawmill,” “the product the sawmill manufactured,” “tree farm,” etc.) without providing a definition of the term.