Date Requested:January 25, 2011
Time Requested:11:43 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1334 Introduced HB2776
CBD Subject: ALTERNATIVE AND RENEWABLE ENERGY SOURCES
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 create a tax credit for residential renewable energy systems. This bill also changes the duration of the residential solar energy tax credit, as the credit created by this bill applies to several types of residential renewable energy systems, including solar systems.
    
    As written, this bill changes the termination date of the current Solar Energy Tax Credit from July 1, 2013 to June 30, 2011. It also creates a new tax credit for the installation of residential renewable energy systems, expanding upon the credit for solar energy systems. Currently, the annual loss to the General Revenue Fund is roughly $70,000 from the Solar Energy Tax Credit. This amount will likely increase with the passage of this bill since renewable energy systems include solar, biomass, geothermal, hydroenergy, and wind energy.
    
    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 0
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to create a tax credit for residential renewable energy systems. This bill also changes the duration of the residential solar energy tax credit, as the credit created by this bill applies to several types of residential renewable energy systems, including solar systems.
    
    As written, this bill changes the termination date of the current Solar Energy Tax Credit from July 1, 2013 to June 30, 2011. It also creates a new tax credit for the installation of residential renewable energy systems, expanding upon the credit for solar energy systems. Currently, the annual loss to the General Revenue Fund is roughly $70,000 from the Solar Energy Tax Credit. This amount will likely increase with the passage of this bill since renewable energy systems include solar, biomass, geothermal, hydroenergy, and wind energy. Under the provisions of this bill, the rate of tax credit would fall from 30 percent under current law to 25 percent, but the maximum credit would rise from $2,000 to $3,000. In addition, the proposed credit would be pro-rated for use over a fiver-year period.
    
    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