FISCAL NOTE
Date Requested: February 17, 2025
Time Requested: 03:44 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2624 |
Introduced |
HB2471 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Increases Revenue From Existing Sources, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to eliminate the tax credit for solar, wind, or other renewable energy systems for corporate or other establishments or entities. It also provides restrictions for maintaining renewable energy systems.
This bill would eliminate any tax credits allowed for corporations or other entities for renewable energy systems, except for personal taxpayers with a residential renewable energy system. It would provide that no corporate or other entity taxpayer may take a credit for a solar energy system installed after July 1, 2024. Because this bill fails to adequately define “subsidies or tax breaks,” we are unable to provide an accurate fiscal estimate for this bill.
Administrative costs incurred by the Tax Division would be $1,100 in FY2025.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
1,100 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,100 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
This bill would eliminate any tax credits allowed for corporations or other entities for renewable energy systems, except for personal taxpayers with a residential renewable energy system. It would provide that no corporate or other entity taxpayer may take a credit for a solar energy system installed after July 1, 2024. Because this bill fails to adequately define “subsidies or tax breaks,” we are unable to provide an accurate fiscal estimate for this bill.
Administrative costs incurred by the Tax Division would be $1,100 in FY2025.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
The stated purpose of this bill is to eliminate the tax credit for solar, wind, or other renewable energy systems for corporate or other establishments or entities. It also provides restrictions for maintaining renewable energy systems.
This bill proposes to repeal a tax credit but does not specify what credit it is repealing. Upon review of the W. Va. Code, it is unclear which credit, if any, would be repealed by this bill.
The bill’s title … gives rise to a title defect. The bill’s title reads that the bill eliminates a credit for residential renewable energy systems which is directly contradicted by the stated purpose and substantive test of this bill, particularly the provision in §11-13BB-3 which states in part, “[t]hese rules may not eliminate the tax credit for individual taxpayers with a residential renewable energy system.”
Furthermore, the proposed article §11-13BB already exists as the West Virginia Innovative Mine Safety Technology Tax Credit Act, although it is set to terminate December 31, 2025. W. Va. Code §11-13BB-14.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov