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 provide a tax credit to sawmills that become certified by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System.
As written, this bill would provide a credit for application against the Corporation Net Income Tax equal to the cost of becoming certified by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System. The credit would be limited to taxpayers whose primary business activity is that of a sawmill. Based upon information from the Division of Forestry on the number of sawmills with 10 or more employees and the certification costs of the only current LEED sawmill, it is estimated that passage of this bill would reduce the General Revenue Fund by roughly $170,000. However, it is our understanding that in addition to certification of the sawmill itself, LEED certification also requires that the timberland from which the sawmill draws timber be certified. The estimated cost of certification of $2 per acre will increase the revenue impact of this bill by two or more times the revenue impact of the sawmill itself.
Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
As written, this bill would provide a credit for application against the Corporation Net Income Tax equal to the cost of becoming certified by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System. The credit would be limited to taxpayers whose primary business activity is that of a sawmill. Based upon information from the Division of Forestry on the number of sawmills with 10 or more employees and the certification costs of the only current LEED sawmill, it is estimated that passage of this bill would reduce the General Revenue Fund by roughly $170,000. However, it is our understanding that in addition to certification of the sawmill itself, LEED certification also requires that the timberland from which the sawmill draws timber be certified. The estimated cost of certification of $2 per acre will increase the revenue impact of this bill by two or more times the revenue impact of the sawmill itself.
The Division of Forestry has indicated that there are 57 sawmills with 10 or more employees (i.e., sawmills that would likely satisfy the requirements of this bill).
Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
Memorandum
The stated purpose of this bill is to provide a tax credit to sawmills that become certified by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System.
As written, the bill proposes that the credit shall be equal to the cost of the sawmill becoming certified in the Leadership in Energy and Environmental Design Green Building Rating System, less any reimbursement of the cost through any other means. The bill also indicates that the definition of “cost of a sawmill to become certified by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System” means the reasonable and necessary sums of money spent by the taxpayer in receiving the certification. Some further clarification of the eligible costs may be necessary.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us