Senate Bill No. 265
(By Senators Unger, Snyder, Stollings, Chafin and Kessler)
[Originating in the Committee on Education;
reported March 25, 2009.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §11-13Z-1; and to
amend said code by adding thereto a new section, designated
§18-2-19, all relating to authorizing a tax credit for new
teachers in critical needs areas; specifying effective date;
providing definition; specifying amount of credit; specifying
application of credit; specifying forfeiture of unused credit;
specifying no carryover or carryback for credit; and requiring
the State Board of Education to determine standards defining
"critical needs areas" in both subject areas and geographic
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §11-13Z-1; and that
said code be amended by adding thereto a new section, designated
§18-2-19, all to read as follows:
CHAPTER 11. TAXATION.
ARTICLE 13Z. CRITICAL NEEDS TEACHERS TAX CREDITS.
§11-13Z-1. Tax credits for new critical needs teachers.
(a) Credit allowed. --
For those tax years beginning on or
after January 1, 2009, there shall be allowed a credit for any
taxpayer, who is a new teacher, against personal income taxes
imposed by this state under article twenty-one of this chapter on
wages paid to new teachers in critical needs areas of education as
the term "critical needs areas" is defined by the State Board of
Education under section nineteen, article two, chapter eighteen of
this code, in the amounts and for the time periods set forth in
subsection (b) of this section. For the purposes of this section,
"new teacher" means a person who:
(1) Is employed by a county board as a classroom teacher, as
that term is defined by section one, article one, chapter
eighteen-a of this code, but is not employed until after the
effective date of this section;
(2) Has never been employed as a classroom teacher, as that
term is defined by section one, article one, chapter eighteen-a of
this code, in this state or in any other state prior to his or her
current employment with the county board; and
(3) Has not qualified for the tax credit for the entire eight
years pursuant to subsection (b) of this section.
(b) Amount of credit.
-- For the first three years of
employment by a new teacher in a critical needs area, the tax credit is $1000 per tax year. For the fourth through the eighth
years of employment by a new teacher in a critical needs area, the
tax credit is $500 per tax year. The tax credit shall become
available to a new teacher in a critical needs area beginning in
the first tax year in which the new teacher in a critical needs
area has completed one full academic year of employment on a full-
time basis, without regard to whether the new teacher in a critical
needs area was employed under a twelve month contract, a ten month
contract or a contract for some other time period.
(c) Legislative rule.
-- The Tax Commissioner shall propose a
legislative rule for promulgation as provided in article three,
chapter twenty-nine-a of this code to explain and implement this
(d) Excess credit forfeited; carryforward and carryback
(1) The tax credit allowed under this article is
nonrefundable. If the tax credit allowed under this article in any
taxable year exceeds the tax imposed under article twenty-one of
this chapter for that taxable year on wages paid to the new teacher
in a critical needs area of education, the excess credit is
(2) No carryback to a prior taxable year or carryforward to a
succeeding taxable year is allowed for any unused portion of the
CHAPTER 18. EDUCATION.
CHAPTER 18. EDUCATION.
ARTICLE 2. STATE BOARD OF EDUCATION.
§18-2-19. Tax credits for new teachers in critical needs areas;
(a) New teachers hired to teach in critical needs areas are
entitled to receive credit against their state personal income tax
liability pursuant to article thirteen-z, chapter eleven of this
(b) On or before July 1, 2009, the state board shall develop
and approve a definition of "critical needs areas" and communicate
the definition to the State Tax Department for use in determining
which new teachers are eligible for the tax credit. The definition
shall identify shortage areas in both subject matter and geographic
area as "critical needs areas".