FISCAL NOTE
Date Requested: February 05, 2026
Time Requested: 04:34 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3273 |
Introduced |
HB5262 |
|
|---|
| CBD Subject: |
Economic Development; Environment; Taxation |
|---|
|
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 tax credit for obtaining certain certifications by the United States Green Building Council Leadership in Energy and Environmental Design green building rating system or the Green Globes Building Initiative green building rating standard. The bill sets forth the amount of the credit, who may take the credit, the criteria for taking the credit and the amount of the credit. The bill also provides rule-making authority and defines terms.
This bill would create a credit for the cost of making renovations and improvements to a building that is certified by the United States Green Building Council Leadership in Energy and Environmental Design green building rating system or the Green Globes Building Initiative green building rating standard. The credit would be taken by the owner of the building and be applied against the Corporation Net Income Tax, the Business Franchise Tax, and then the Personal Income Tax. The Business Franchise Tax was terminated on January 1, 2015. The amount of the credit would be equal to 100 percent of the cost of renovations and improvements to the building incurred in the taxable year in which the building receives its certification. This bill would be effective for tax years beginning on and after January 1, 2026.
According to data provided by the United States Green Building Council, there are 43 certified buildings in West Virginia, which is on the lower end of states through 2025. There is no readily available data for planned products in the state or the potential cost of such projects. Therefore, we cannot reasonably provide an estimate for the revenue loss from this bill. However, the cost could be of some significance because the State could potentially fund 100 percent of such improvement through the tax credit mechanism.
Additional administrative costs would be $45,650 in FY2027 and $11,000 in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
45,650 |
11,000 |
| Personal Services |
0 |
11,000 |
11,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
33,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill would create a credit for the cost of making renovations and improvements to a building that is certified by the United States Green Building Council Leadership in Energy and Environmental Design green building rating system or the Green Globes Building Initiative green building rating standard. The credit would be taken by the owner of the building and be applied against the Corporation Net Income Tax, the Business Franchise Tax, and then the Personal Income Tax. The Business Franchise Tax was terminated on January 1, 2015. The amount of the credit would be equal to 100 percent of the cost of renovations and improvements to the building incurred in the taxable year in which the building receives its certification. This bill would be effective for tax years beginning on and after January 1, 2026.
According to data provided by the United States Green Building Council, there are 43 certified buildings in West Virginia, which is on the lower end of states through 2025. There is no readily available data for planned products in the state or the potential cost of such projects. Therefore, we cannot reasonably provide an estimate for the revenue loss from this bill. However, the cost could be of some significance because the State could potentially fund 100 percent of such improvement through the tax credit mechanism.
Additional administrative costs would be $45,650 in FY2027 and $11,000 in subsequent fiscal years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov