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 a tax credit for apprenticeship training in construction trades.
As written, this bill would create a new tax credit in an amount equal to $2 multiplied by the total number of hours worked during the income year by apprentices, provided that the credit allowed with respect to each apprentice may not exceed $2,000 or 50 percent of actual wages paid in the income year. The bill provides that a qualified apprenticeship program requires at least 2,000 hours, but not more than 10,000 hours, of on the job apprenticeship training.
According to our interpretation, this bill would create a new apprenticeship training tax credit similar to the current apprenticeship training tax credit established via West Virginia Code §11-13W et seq. The new tax credit, which would be in addition to the existing tax credit, provides a credit that is essentially twice the amount of the existing tax credit. Based upon claims of the West Virginia Code §11-13W apprenticeship training tax credit, passage of the new tax proposed by this bill would result in a reduction in the General Revenue Fund of roughly $900,000 per year.
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 |
2011
Increase/Decrease
(use"-") |
2012
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 |
-900,000 |
Explanation of above estimates (including long-range effect):
Passage of this bill would create a new tax credit in an amount equal to $2 multiplied by the total number of hours worked during the income year by apprentices, provided that the credit allowed with respect to each apprentice may not exceed $2,000 or 50 percent of actual wages paid in the income year. The bill provides that a qualified apprenticeship program requires at least 2,000 hours, but not more than 10,000 hours, of on the job apprenticeship training.
According to our interpretation, this bill would create a new apprenticeship training tax credit similar to the current apprenticeship training tax credit established via West Virginia Code §11-13W et seq. The new tax credit, which would be in addition to the existing tax credit, provides a credit that is essentially twice the amount of the existing tax credit. Based upon claims of the West Virginia Code §11-13W apprenticeship training tax credit, passage of the new tax proposed by this bill would result in a reduction in the General Revenue Fund of roughly $900,000 per year.
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 create a tax credit for apprenticeship training in construction trades.
According to our interpretation, this bill would create a new apprenticeship training tax credit similar to the current apprenticeship training tax credit established via West Virginia Code §11-13W et seq. The new tax credit, which would be in addition to the existing tax credit, provides a credit that is essentially twice the amount of the existing tax credit.
The bill, as written, uses a number of terms without providing definitions of their intended usage. Also, the bill does not specify which taxes the proposed tax credit is to be applied.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov