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 purpose of this bill is to create a personal income tax credit for parents and guardians who contribute to a trust fund established for the future support of an autistic child.
As written, this bill would allow a 100 percent tax credit of up to $2,000 per year for contributions to a trust fund for the future support of a child with autism. This is a nonrefundable credit to be taken in the taxable year in which the payment is made and may be carried forward five taxable years. As a result, the passage of this bill would result in a loss of roughly $1.2 million per year in Personal Income Tax revenue beginning in Fiscal Year 2011. In addition, any income earned or withdrawal of funds for intended purposes would be excluded from State income tax.
There would be no additional administrative costs to the State Tax Department from the passage of this bill.
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 |
-1,200,000 |
Explanation of above estimates (including long-range effect):
As written, this bill would allow a 100 percent tax credit of up to $2,000 per year for contributions to a trust fund for the future support of a child with autism. This is a nonrefundable credit to be taken in the taxable year in which the payment is made and may be carried forward five taxable years. As a result, the passage of this bill would result in a loss of roughly $1.2 million per year in Personal Income Tax revenue beginning in Fiscal Year 2011. In addition, any income earned or withdrawal of funds for intended purposes would be excluded from State income tax. Based upon recent statistics, there are more than 600 autistic children in West Virginia, and that number continues to trend upward. Participation rates in this program are expected to be close to 100 percent given that State government would fund 100 percent of the cost up to $2,000 each year.
There would be no additional administrative costs to the State Tax Department from the passage of this bill.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us