Date Requested: January 16, 2015
Time Requested: 11:17 AM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
1986 Introduced HB2165
CBD Subject: Tax


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 the bill is to create a tax credit for businesses with more than twenty-five employees that relocate to reclaimed mountaintop removal land. The bill provides that the credit lasts for ten years.
    
    The revenue loss associated with this bill cannot be determined. The bill does not state what businesses would qualify for the credit or the amount of the credit.
    
    Additional administrative costs would be $37,000 in the first year and $25,000 in subsequent years.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 37,000 25,000
Personal Services 0 25,000 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 7,000 0
Other 0 5,000 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    The revenue loss associated with this bill cannot be determined. The bill does not state what businesses would qualify for the credit or the amount of the credit. If the business relocating was a business in the activity of manufacturing, information processing, warehousing, non-retail goods distribution, qualified research and development, the relocation of a corporate headquarters or destination-oriented recreation and tourism, they would already qualify for the Economic Opportunity Tax Credit.
    
    Additional administrative costs would be $37,000 in the first year and $25,000 in subsequent years.
    



Memorandum


    The stated purpose of the bill is to create a tax credit for businesses with more than twenty-five employees that relocate to reclaimed mountaintop removal land. The bill provides that the credit lasts for ten years.
    
    The proposed bill lacks sufficient detail about the credit. It does not state the amount of the credit. It also is not limited to taxable income attributable to the business location that has relocated. A business with several locations may attempt to exempt all of its taxable income attributable to the location that has just relocated.
    
    The proposed bill does not state when the credit may be taken nor does it contain carryforward or carryback provisions.
    
    



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov