Date Requested:February 23, 2012
Time Requested:11:20 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R2102 Comm. Sub. HB4475
CBD Subject: RECENT GRADUATES OF HIGHER EDUCATION INSTITUTIONS
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.

    As written, this bill creates the West Virginia Residential Incentive Tax Credit Act.
    
    The proposed West Virginia Residential Incentive Tax Credit would be available to persons who graduate with an associate’s degree, bachelor’s degree, or a graduate degree in the area of science, technology, engineering, mathematics, nursing or teaching from any regionally accredited in-state or out-of-state higher education institution or any regionally accredited in-state community and technical college on or after January 1, 2013 and before January 1, 2018 and who continuously resides in West Virginia from the date of graduation through the next subsequent year. The proposed credit is for tax years beginning after December 31, 2012 and is not to exceed $1,500 per year with the maximum a person can receive of $3,000. The bill also would require the State Tax Commissioner to prepare and submit a report evaluating the cost of the credit.
    
    According to our interpretation and based upon available information, passage of this bill would result in a reduction in the General Revenue Fund of roughly $7 million per year beginning in FY2015.
    
    Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $50,000 per year beginning in FY2015.

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 50,000
Personal Services 0 0 50,000
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 -7,000,000
3. Explanation of above estimates (including long-range effect):
    This bill proposes a West Virginia Residential Incentive Tax Credit would be available to persons who graduate with an associate’s degree, bachelor’s degree, or a graduate degree in the area of science, technology, engineering, mathematics, nursing or teaching from any regionally accredited in-state or out-of-state higher education institution or any regionally accredited in-state community and technical college on or after January 1, 2013 and before January 1, 2018 and who continuously resides in West Virginia from the date of graduation through the next subsequent year. The proposed credit is for tax years beginning after December 31, 2012 and is not to exceed $1,500 per year with the maximum a person can receive of $3,000. The bill also would require the State Tax Commissioner to prepare and submit a report evaluating the cost of the credit.
    
    According to our interpretation and based upon available information, passage of this bill would result in a reduction in the General Revenue Fund of roughly $7 million per year beginning in FY2015.
    
    Additional administrative costs to the State Tax Department associated with passage of this bill would be roughly $50,000 per year beginning in FY2015. The additional costs would be for reviewing claims of the tax credit and preparing the required annual report.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov
    As written, this bill creates the West Virginia Residential Incentive Tax Credit Act.
    
    The body of the bill indicates the proposed West Virginia Residential Incentive Tax Credit would be available to persons who graduate with an “associate’s degree, bachelor’s degree, or a graduate degree,” while the bill title only references “bachelor’s or graduate degree.”