Supplement: WV HB5052 | 2024 | Regular Session | Tax & Revenue Department, WV State
For additional supplements on West Virginia HB5052 please see the Bill Drafting List
Bill Title: Increase the tax credit for employers providing child care for employees.
Status: 2024-02-02 - To House Finance [HB5052 Detail]
Download: West_Virginia-2024-HB5052-Tax_Revenue_Department_WV_State.html
The stated purpose of this bill is to increase the tax credit for employers providing childcare for employees. According to our interpretation, this bill would increase the credits for capital investment in a childcare facility and operating costs of a childcare facility from 50 percent to 100 percent. The current tax credits related to capital investments and operating costs are at 50 percent. This bill simply doubles the credit amount for both credits currently in statute. Increasing the tax credits to 100 percent effectively transfers the full cost of qualified activity to the State. Passage of this bill will likely yield a reduction in the General Revenue Fund of some significance beginning in FY2025 largely due to the expansion of the current tax credits related to capital investment and operating costs of a childcare facility. The current tax credit only became effective as of July 1, 2022. Therefore, no significant claims were anticipated before the filing of tax year 2023 returns sometime in 2024. As structured, the tax credits are anticipated to be claimed by certain large employers, particularly non-profit corporations. Additional administrative costs incurred by the State Tax Department would be $10,000 in FY2025.
According to our interpretation, this bill would increase the credits for capital investment in a childcare facility and operating costs of a childcare facility from 50 percent to 100 percent. The current tax credits related to capital investments and operating costs are at 50 percent. This bill simply doubles the credit amount for both credits currently in statute. Increasing the tax credits to 100 percent effectively transfers the full cost of qualified activity to the State. Passage of this bill will likely yield a reduction in the General Revenue Fund of some significance beginning in FY2025 largely due to the expansion of the current tax credits related to capital investment and operating costs of a childcare facility. The current tax credit only became effective as of July 1, 2022. Therefore, no significant claims were anticipated before the filing of tax year 2023 returns sometime in 2024. As structured, the tax credits are anticipated to be claimed by certain large employers, particularly non-profit corporations. Additional administrative costs incurred by the State Tax Department would be $10,000 in FY2025.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov
Bill Title: Increase the tax credit for employers providing child care for employees.
Status: 2024-02-02 - To House Finance [HB5052 Detail]
Download: West_Virginia-2024-HB5052-Tax_Revenue_Department_WV_State.html
FISCAL NOTE
| Date Requested: January 23, 2024 Time Requested: 04:30 PM |
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FUND(S):
General Revenue FundSources of Revenue:
General FundLegislation creates:
Decreases Existing Revenue, Increases Existing ExpensesFiscal 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 for employers providing childcare for employees. According to our interpretation, this bill would increase the credits for capital investment in a childcare facility and operating costs of a childcare facility from 50 percent to 100 percent. The current tax credits related to capital investments and operating costs are at 50 percent. This bill simply doubles the credit amount for both credits currently in statute. Increasing the tax credits to 100 percent effectively transfers the full cost of qualified activity to the State. Passage of this bill will likely yield a reduction in the General Revenue Fund of some significance beginning in FY2025 largely due to the expansion of the current tax credits related to capital investment and operating costs of a childcare facility. The current tax credit only became effective as of July 1, 2022. Therefore, no significant claims were anticipated before the filing of tax year 2023 returns sometime in 2024. As structured, the tax credits are anticipated to be claimed by certain large employers, particularly non-profit corporations. Additional administrative costs incurred by the State Tax Department would be $10,000 in FY2025.
Fiscal Note Detail
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2024 Increase/Decrease (use"-") |
2025 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) | |
| 1. Estmated Total Cost | 0 | 10,000 | 0 |
| Personal Services | 0 | 0 | 0 |
| Current Expenses | 0 | 0 | 0 |
| Repairs and Alterations | 0 | 0 | 0 |
| Assets | 0 | 0 | 0 |
| Other | 0 | 10,000 | 0 |
| 2. Estimated Total Revenues | 0 | 0 | 0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill would increase the credits for capital investment in a childcare facility and operating costs of a childcare facility from 50 percent to 100 percent. The current tax credits related to capital investments and operating costs are at 50 percent. This bill simply doubles the credit amount for both credits currently in statute. Increasing the tax credits to 100 percent effectively transfers the full cost of qualified activity to the State. Passage of this bill will likely yield a reduction in the General Revenue Fund of some significance beginning in FY2025 largely due to the expansion of the current tax credits related to capital investment and operating costs of a childcare facility. The current tax credit only became effective as of July 1, 2022. Therefore, no significant claims were anticipated before the filing of tax year 2023 returns sometime in 2024. As structured, the tax credits are anticipated to be claimed by certain large employers, particularly non-profit corporations. Additional administrative costs incurred by the State Tax Department would be $10,000 in FY2025.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov
