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 reinstate the high-growth business investment tax credit which expired on July 1, 2008.
As written, this bill would reinstate the High-Growth Business Investment Tax Credit effective July 1, 2010, and would terminate the credit on July 1, 2013. The credit would apply to qualified investment made on and after July 1, 2010 but before June 13, 2013. Based upon pre-existing language in W. Va. Code §11-13U-4(b) limiting the amount of credit that may be allocated each fiscal year by the Economic Development Authority, the estimated reduction in the General Revenue Fund attributable to passage of this bill would be $1 million per year for the three-year reinstatement period.
Additional administrative costs to the State Tax Department associated with this bill would be minimal. However, the Economic Development Authority may incur additional administrative costs attributable to passage of this bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
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 |
-1,000,000 |
-1,000,000 |
Explanation of above estimates (including long-range effect):
As written, this bill would reinstate the High-Growth Business Investment Tax Credit effective July 1, 2010, and would terminate the credit on July 1, 2013. The credit would apply to qualified investment made on and after July 1, 2010 but before June 13, 2013. Based upon pre-existing language in W. Va. Code §11-13U-4(b) limiting the amount of credit that may be allocated each fiscal year by the Economic Development Authority. The estimated reduction in the General Revenue Fund attributable to passage of this bill would be $1 million per year for the three-year reinstatement period.
Additional administrative costs to the State Tax Department associated with this bill would be minimal. However, the Economic Development Authority may incur additional administrative costs attributable to passage of this bill.
Memorandum
The stated purpose of this bill is to reinstate the high-growth business investment tax credit which expired on July 1, 2008.
As written, the bill provides that “no entitlement to the tax credit will result from any qualified investment made after June 13, 2013. : The ending date of “June 13" may have been based upon a change, unmarked by strikethrough or underlining, in the second sentence of W. Va. Code §11-13U-10 that incorrectly converted “the thirtieth day of June, two thousand eight” to “June 13, 2008.”
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov