FISCAL NOTE
Date Requested: February 01, 2016
Time Requested: 03:26 PM |
| Agency: |
Tax Department, State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1249 |
Introduced |
HB4321 |
|
|---|
| 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 this bill is to remove the requirement that programs be jointly administered by labor and management trustees in order to qualify for tax credits for apprenticeship training in construction trades.
According to our interpretation, passage of this bill would modify the current WV Apprenticeship Training Tax Credit by removing the requirement that qualifying apprenticeship training programs be jointly administered by labor and management trustees. As a result, more taxpayers might qualify for this credit. However, we do not possess sufficient information to be able to measure the potential fiscal impact of this change. Between 2011 and 2014, an average of roughly 200 taxpayers claimed total tax credits averaging $425,000 per year under this program.
Additional administrative costs to the State Tax Department would be $54,350 in FY2017 and $31,840 per fiscal year thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
54,350 |
31,850 |
| Personal Services |
0 |
31,850 |
31,850 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
10,500 |
0 |
| Other |
0 |
12,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would modify the current WV Apprenticeship Training Tax Credit by removing the requirement that qualifying apprenticeship training programs be jointly administered by labor and management trustees. As a result, more taxpayers might qualify for this credit. However, we do not possess sufficient information to be able to measure the potential fiscal impact of this change. Between 2011 and 2014, an average of roughly 200 taxpayers claimed total tax credits averaging $425,000 per year under this program.
Additional administrative costs to the State Tax Department would be $54,350 in FY2017 and $31,840 per fiscal year thereafter.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov