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 improve state emergency preparedness. It requires the Office of Emergency Services to coordinate with local radio and television stations to broadcast public service announcements with information as to the location of emergency shelters. The bill provides tax credits for use of natural gas or propane fueled emergency generators. The bill also provides a protection from civil or criminal liability to persons who donate food during times of emergencies. As indicated in the stated purpose above, and in the bill itself, a number of changes in the West Virginia Code are proposed. This Fiscal Note only addresses the proposed tax credit. Other entities, including the Division of Homeland Security and Emergency Management, may be expected to submit a Fiscal Note for the portions of the bill under their purview. As written, this bill would provide a tax credit to any Taxpayer who installs or causes to be installed an emergency generator powered by natural gas or propane on property located in this state and owned by the Taxpayer and used as a place of business or residence. The credit would be effective for qualifying generators installed after July 1, 2014, and on or before June 30, 2016. The amount of the tax credit would be equal to 30 percent of the cost to purchase and install the system, up to a maximum of $3,000, and would be applied against the Personal Income Tax liability, Corporate Net Income Tax liability, and Business Franchise Tax liability of the Taxpayer. The bill also provides for the carryover of tax credit in excess of the tax liability. According to our interpretation and based upon available information from Legislative Interim Study - SCR41, passage of this bill would result in a potential reduction of the General Revenue Fund of between $23.1 million and $31.5 million spaced out over more than two fiscal years beginning in FY2015. Additional administrative costs to the State Tax Department from the passage of this bill would be approximately $50,500 in FY 2015 for personnel, programming, and other related costs.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2014 Increase/Decrease (use"-")	2015 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	50,500	35,000
Personal Services	0	35,000	35,000
Current Expenses	0	0	0
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	15,500	0
2. Estimated Total Revenues	0	0	0

Explanation of above estimates (including long-range effect):

As written, this bill would provide a tax credit to any Taxpayer who installs or causes to be installed an emergency generator powered by natural gas or propane on property located in this state and owned by the Taxpayer and used as a place of business or residence. The credit would be effective for qualifying generators installed after July 1, 2014, and on or before June 30, 2016. The amount of the tax credit would be equal to 30 percent of the cost to purchase and install the system, up to a maximum of $3,000, and would be applied against the Personal Income Tax liability, Corporate Net Income Tax liability, and Business Franchise Tax liability of the Taxpayer. The bill also provides for the carryover of tax credit in excess of the tax liability. According to our interpretation and based upon available information from Legislative Interim Study - SCR41, passage of this bill would result in a potential reduction of the General Revenue Fund of between $23.1 million and $31.5 million spaced out over more than two fiscal years beginning in FY2015. Additional administrative costs to the State Tax Department from the passage of this bill would be approximately $50,500 in FY 2015 for personnel, programming, and other related costs.

Memorandum

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