FISCAL NOTE
Date Requested: February 22, 2017
Time Requested: 08:14 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1528 |
Introduced |
SB238 |
|
|---|
| CBD Subject: |
|
|---|
|
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 increase the tax credit allowed for rehabilitation of certified historic structures.
Under current law, a 10 percent State tax credit applies to certified historic structures that also qualify for a 20 percent federal tax credit. The tax credit applies to both Personal Income Tax and Corporation Net Income Tax. According to the provisions of the bill, the credit allowed against only Personal Income Tax for certified historic structures would be increased from 10 percent to 25 percent. However, the tax credit against the Corporation Net Income Tax would remain at 10 percent. Under the assumption of no increase in the current average amount of annual qualified rehabilitation expenditures, the increase in tax credit would result in a loss of roughly $750,000 to the General Revenue Fund in FY2018 and fiscal years thereafter.
If the provisions of this bill were amended to provide equal treatment to corporate taxpayers, then the total costs associated with no additional increase in activity would be roughly $1.6 million per year.
Additional administrative costs incurred by the State Tax Department would be $500 in FY2018.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
500 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
500 |
0 |
| 2. Estimated Total Revenues |
0 |
-750,000 |
-750,000 |
Explanation of above estimates (including long-range effect):
Under current law, a 10 percent State tax credit applies to certified historic structures that also qualify for a 20 percent federal tax credit. The tax credit applies to both Personal Income Tax and Corporation Net Income Tax. According to the provisions of the bill, the credit allowed against only Personal Income Tax for certified historic structures would be increased from 10 percent to 25 percent. However, the tax credit against the Corporation Net Income Tax would remain at 10 percent. Under the assumption of no increase in the current average amount of annual qualified rehabilitation expenditures, the increase in tax credit would result in a loss of roughly $750,000 to the General Revenue Fund in FY2018 and fiscal years thereafter.
If the provisions of this bill were amended to provide equal treatment to corporate taxpayers, then the total costs associated with no additional increase in activity would be roughly $1.6 million per year.
Additional administrative costs incurred by the State Tax Department would be $500 in FY2018.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov