Date Requested:January 17, 2011
Time Requested:01:20 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1125 Introduced HB2508
CBD Subject: COLLEGE GRADUATION TAX CREDIT
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 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 $10.0 million loss to the General Revenue Fund in fiscal year 2013. The loss would expand each year until reaching $114.0 million upon full implementation in fiscal year 2021.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
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 -114,000,000
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would result in a $10.0 million loss to the General Revenue Fund in fiscal year 2013. The loss would expand each year until reaching $114.0 million upon full implementation in fiscal year 2021.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    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.