Date Requested:January 16, 2012
Time Requested:05:22 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R1125 Carry Over 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 minor loss in revenue in fiscal year 2013 and a loss of $15.8 million to the General Revenue Fund in fiscal year 2014. The loss would expand each year until reaching $181.4 million upon full implementation in fiscal year 2023.
    
    Additional administrative costs to the State Tax Department from the passage of this bill would be $26,400 per year beginning in fiscal year 2014 due to the hiring of additional personnel in anticipation of a large volume of taxpayers that would qualify for this credit.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 26,400
Personal Services 0 0 24,900
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 1,500
2. Estimated Total Revenues 0 0 -181,400,000
3. Explanation of above estimates (including long-range effect):
    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 minor loss in revenue in fiscal year 2013 and a loss of $15.8 million to the General Revenue Fund in fiscal year 2014. The loss would expand each year until reaching $181.4 million upon full implementation in fiscal year 2023.
    
    Additional administrative costs to the State Tax Department from the passage of this bill would be $26,400 per year beginning in fiscal year 2014 due to the hiring of additional personnel in anticipation of a large volume of taxpayers that would qualify for this credit.
    
    


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.