Date Requested:February 21, 2012
Time Requested:12:05 PM
Agency: Economic Development Authority
CBD Number: Version: Bill Number: Resolution Number:
2012R2277 Introduced SB653
CBD Subject: WV INNOVATION AND DEVELOPMENT ACT
FUND(S)
Sources of Revenue
General Fund
Legislation creates:
A New Program,A New Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    5E-C-6 contemplates appropriations of up to $5.0 million each fiscal year to provide investments and technical assistance to qualified investment companies.
    
    5E-C-7 contemplates the Authority approving up to $25.0 million in recoverable revenue credits within the next five year. This amount does not provide an annual cap, thus all credits coulde be issued in year one or it could be spread over five successive years depending upon demand for the tax credits. Estimates in the fiscal note below assumes the Authority would approve $5.0 million of recoverable revenue credits per year.

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 10,000,000 10,000,000 10,000,000
Personal Services 0 0 0
Current Expenses 20,000 10,000 10,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 100,000 200,000 200,000
3. Explanation of above estimates (including long-range effect):
    Current expenses represent the estimated legal costs the Authority would experience for the writing, filing, and implementation of the necessary program rules for 5E-C-6; 5E-C-7; and 5E-C-8.
    
    There is little to no reliability in predicting future revenues that may result from these programs.


Memorandum
Person submitting Fiscal Note:
David Warner, Executive director, WVEDA
Email Address:
David.A.Warner@wv.gov
    5E-C-5 contains a reporting requirement of July 1, 2012 and July 1 of each succeeding year. I would suggest a 30 to 60 day period to accumulate the necessary data to furnish a report to the joint committee on Government and Finance. the initial report should be July 1, 2013 instead of July 1, 2012 since the program will not have been implemented prior to July 1, 2012.