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 FY2014 and a loss of $15.8 million to the General Revenue Fund in FY2015. The loss would expand each year until reaching $181.4 million upon full implementation in FY 2024.
    
     Additional administrative costs to the State Tax Department from the passage of this bill would be $30,000 per year beginning in FY2015 due to the hiring of additional personnel in anticipation of a large volume of taxpayers that would qualify for this credit.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 30,000
Personal Services 0 0 28,500
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


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 FY2014 and a loss of $15.8 million to the General Revenue Fund in FY2015. The loss would expand each year until reaching $181.4 million upon full implementation in FY 2024.
    
     Additional administrative costs to the State Tax Department from the passage of this bill would be $30,000 per year beginning in FY2015 due to the hiring of additional personnel in anticipation of a large volume of taxpayers that would qualify for this credit.
    



Memorandum


     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.
    
    



    Person submitting Fiscal Note: Mark B. Muchow
    Email Address: Roger.D.Cox@wv.gov