FISCAL NOTE
Date Requested: January 16, 2024
Time Requested: 04:30 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3065 |
Introduced |
SB460 |
|
|---|
| CBD Subject: |
Governor -- Bills Requested By |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to provide a credit against personal income tax in the amount of 50% of the allowable federal child and dependent care credit, effective for tax years beginning on or after January 1, 2024.
Based on our interpretation, the bill would establish a nonrefundable personal income tax credit for persons who are allowed a federal tax credit for child and dependent care pursuant to 26 U.S.C. §21. The amount of credit allowed is 50 percent of the federal child and dependent care tax credit. The legislation would be effective for taxable years beginning on and after January 1, 2024.
According to our interpretation, the legislation, if passed, would result in a decrease in General Revenue Fund collections of $4.2 million beginning in FY2025.
Additional administrative costs incurred by the State Tax Department would be $60,000 in FY2025 and $10,000 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
60,000 |
10,000 |
| Personal Services |
0 |
45,000 |
10,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
15,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-4,200,000 |
-4,200,000 |
Explanation of above estimates (including long-range effect):
Based on our interpretation, the bill would establish a nonrefundable personal income tax credit for persons who are allowed a federal tax credit for child and dependent care pursuant to 26 U.S.C. §21. The amount of credit allowed is 50 percent of the federal child and dependent care tax credit. The legislation would be effective for taxable years beginning on and after January 1, 2024.
According to our interpretation, the legislation, if passed, would result in a decrease in General Revenue Fund collections of $4.2 million beginning in FY2025.
Additional administrative costs incurred by the State Tax Department would be $60,000 in FY2025 and $10,000 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to provide a credit against personal income tax in the amount of 50% of the allowable federal child and dependent care credit, effective for tax years beginning on or after January 1, 2024.
The bill purports to add a new section designated W.Va. Code §11-21-25. However, §11-21-25 already exists.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov