FISCAL NOTE
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 create incentives to encourage West Virginia workers to obtain the GED and incentives to encourage West Virginia employers to allow their employees to study for and obtain a GED.
According to our interpretation, passage of this bill would result in a reduction in the General Revenue Fund of no more than $4.3 million per year. The credit provided in this bill would be available to employers who encourage employees to obtain a General Education Degree (GED). The credit will apply to Personal Income Tax liabilities, Corporation Net Income Tax and Business Franchise Tax liabilities arising after December 31, 2008.
Additional administrative cost to the State Tax Department associated with passage of this bill would be approximately $29,000 in Fiscal Year 2008.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
29,240 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
28,240 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
1,000 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-4,300,000 |
Explanation of above estimates (including long-range effect):
The bill would provide for an employee to receive a minimum of five hours per week of paid release time to study for the general education degree and for the employer to be eligible for a tax credit. The eligible taxpayer may take the credit against Business Franchise Tax, and then either Personal Income Tax or the Corporation Net Income Tax. The credit is equal to half of the amount of wages paid to employees for study time up to a maximum of $1,250 per person taking the GED. There are over 3,400 persons taking the GED each year who might qualify for this program..
According to our interpretation, passage of this bill would result in a reduction in the General Revenue Fund of no more than $4.3 million per year. The credit provided in this bill would be available to employers who encourage employees to obtain a General Education Degree (GED). The credit will apply to Personal Income Tax liabilities, Corporation Net Income Tax and Business Franchise Tax liabilities arising after December 31, 2008.
Additional administrative cost to the State Tax Department associated with passage of this bill would be approximately $29,000 in Fiscal Year 2008.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us