Date Requested:February 16, 2011
Time Requested:03:19 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2691 Introduced SB523
CBD Subject: APPRENTICESHIP TRAINING IN CONSTRUCTION TRADE
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 apprenticeship training in construction trades.
    
    As written, this bill would create a new tax credit in an amount equal to $2 multiplied by the total number of hours worked during the income year by apprentices, provided that the credit allowed with respect to each apprentice may not exceed $2,000 or 50 percent of actual wages paid in the income year. The bill provides that a qualified apprenticeship program requires at least 2,000 hours, but not more than 10,000 hours, of on the job apprenticeship training.
    
    According to our interpretation, this bill would create a new apprenticeship training tax credit similar to the current apprenticeship training tax credit established via West Virginia Code §11-13W et seq. The new tax credit, which would be in addition to the existing tax credit, provides a credit that is essentially twice the amount of the existing tax credit. Based upon claims of the West Virginia Code §11-13W apprenticeship training tax credit, passage of the new tax proposed by this bill would result in a reduction in the General Revenue Fund of roughly $900,000 per year.
    
    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
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 -900,000
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would create a new tax credit in an amount equal to $2 multiplied by the total number of hours worked during the income year by apprentices, provided that the credit allowed with respect to each apprentice may not exceed $2,000 or 50 percent of actual wages paid in the income year. The bill provides that a qualified apprenticeship program requires at least 2,000 hours, but not more than 10,000 hours, of on the job apprenticeship training.
    
    According to our interpretation, this bill would create a new apprenticeship training tax credit similar to the current apprenticeship training tax credit established via West Virginia Code §11-13W et seq. The new tax credit, which would be in addition to the existing tax credit, provides a credit that is essentially twice the amount of the existing tax credit. Based upon claims of the West Virginia Code §11-13W apprenticeship training tax credit, passage of the new tax proposed by this bill would result in a reduction in the General Revenue Fund of roughly $900,000 per year.
    
    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 create a tax credit for apprenticeship training in construction trades.
    
    According to our interpretation, this bill would create a new apprenticeship training tax credit similar to the current apprenticeship training tax credit established via West Virginia Code §11-13W et seq. The new tax credit, which would be in addition to the existing tax credit, provides a credit that is essentially twice the amount of the existing tax credit.
    
    The bill, as written, uses a number of terms without providing definitions of their intended usage. Also, the bill does not specify which taxes the proposed tax credit is to be applied.