Date Requested:February 14, 2012
Time Requested:03:34 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1620 Introduced HB4525
CBD Subject: TAX CREDITS FOR TRAINING IN CONSTRUCTION TRADES
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 increase the tax credit for apprenticeship training in construction trades.
    
     As written, this bill would increase the Apprenticeship Training Tax Credit from an amount equal to $1 multiplied by the total number of hours worked during the income year by apprentices to an amount equal to $2 multiplied by the total number of hours worked during the income year. Additionally, the bill proposes to increase the maximum credit allowed with respect to each apprentice from an amount not to exceed $1,000 to an amount not to exceed $2,000. The proposed changes would be effective for tax years beginning on or after January 1, 2012.
    
     According to our interpretation, passage of this bill would result in a reduction in the General Revenue Fund of roughly $600,000 per year beginning in FY2013.
    
     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
2012
Increase/Decrease
(use"-")
2013
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 -600,000 -600,000
3. Explanation of above estimates (including long-range effect):
     As written, this bill would increase the Apprenticeship Training Tax Credit from an amount equal to $1 multiplied by the total number of hours worked during the income year by apprentices to an amount equal to $2 multiplied by the total number of hours worked during the income year. Additionally, the bill proposes to increase the maximum credit allowed with respect to each apprentice from an amount not to exceed $1,000 to an amount not to exceed $2,000. The proposed changes would be effective for tax years beginning on or after January 1, 2012.
    
     According to our interpretation, passage of this bill would result in a reduction in the General Revenue Fund of roughly $600,000 per year beginning in FY2013.
    
     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