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WEST virginia legislature
2020 regular session
Introduced
House Bill 4033
By Delegates Howell, Bibby, J. Jeffries, Waxman, J. Kelly, Cadle and Fast
[Introduced January 08, 2020; Referred to the Committee on Fire Departments and Emergency Medical Services then Finance]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto three new sections, designated §11-21-25, §11-21-26, and §11-21-27 all relating to creating three refundable tax credits for volunteer fire fighters, emergency medical responders, emergency medical services practitioners, and ambulance drivers for qualifying service, training expenses and mileage expenses.
Be it enacted by the Legislature of West Virginia:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-25. Emergency Responder Service Tax Credit.
(a) This section may be known and cited as the West Virginia Emergency Responder Service Tax Credit Act.
(b) When used in this section, or in the administration of this section:
“Commissioner” or “Tax Commissioner” means the Tax Commissioner of the State of West Virginia or the Tax Commissioner's delegate.
“Eligible taxpayer” means an emergency responder who qualifies for a credit under this section.
“Emergency responder” means an individual who serves in this state as a volunteer emergency medical responder, a volunteer emergency medical responder; a volunteer fire fighter; a volunteer emergency medical services practitioner; or a volunteer ambulance driver.
“Qualifying service” means service provided by the eligible taxpayer as an emergency responder at a station of the department for which he or she serves or at the scene of a call or incident to which the department has responded.
“Taxpayer” means any person subject to the tax imposed under this article.
(d) (1) A taxpayer may not claim the credit under this section unless the taxpayer is in good standing with the department for which he or she serves and either has completed 40 hours of qualifying service for the department in the year to which the claim relates or has participated in at least 50 percent of the calls or incidents to which his or her station within the department has responded in the year to which the claim relates, not including calls or incidents outside of the department’s jurisdiction. A taxpayer who holds more than one emergency responder position in the same department may include the time spent providing qualifying service in each position when determining whether the 40-hour threshold is met. A taxpayer shall provide certification from the department for which he or she serves to the Tax Commissioner, on a form prescribed by the commissioner, that the taxpayer has complied with the requirements of this subdivision and shall submit the certification with the taxpayer’s return.
(2) No credit may be claimed under this section by a part-year resident or a nonresident of this state.
(3) No credit is allowed under this section for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.
(e) For any taxable year the taxpayer is eligible to claim the credits under this section and §11-21-26 and §11-21-27 of this code, or both, the taxpayer may claim one credit under each section for that taxable year and may claim only one credit under each section regardless of the number of positions the taxpayer holds that makes the taxpayer eligible to claim the credits.
(f) If the amount of the credit calculated under subsection (c) of this section exceeds the tax otherwise due under this article, the amount of the credit calculated not used to offset the tax due shall be refunded to the taxpayer.
(g) If it appears upon audit or otherwise that any person has taken the credit against tax allowed under this section and was not entitled to take the credit, then the credit improperly taken under this article shall be recaptured. Amended returns shall be filed for any tax year for which the credit was improperly taken. Any additional taxes due under this chapter shall be remitted with the amended return or returns filed with the Tax Commissioner, along with interest, and other penalties and additions to tax as may be applicable pursuant to the provisions of §11-10-1 et seq. of this code.
(h) Notwithstanding the provisions of article §11-10-1 et seq. of this code, penalties and additions to tax imposed under that article may be waived at the discretion of the Tax Commissioner, unless the interest is not subject to waiver.
(i) The Tax Commissioner may adopt or propose, as appropriate, interpretive, procedural and legislative rules, in accordance with the provisions of §29A-3-1 et seq. of this code, the commissioner considers necessary to carry out the purposes of this section.
(j) This section is effective for tax years beginning on or after January 1, 2021.
§11-21-26. Emergency Responder Education and Training Tax Credit.
(a) This section may be known and cited as the “Emergency Responder Education and Training Tax Credit Act.”
(b) When used in this section, or in the administration of this section:
“Commissioner” or “Tax Commissioner” means the Tax Commissioner of the State of West Virginia or the Tax Commissioner's delegate.
“Course-work time” means the number of hours spent in a class or in training exercises, either in person or online, by an emergency responder if the course maintains or improves skills required by the individual to continue serving as an emergency responder or is necessary for the individual to obtain or maintain certification to continue serving as an emergency responder.
“Eligible taxpayer” means an emergency responder who is eligible to claim the credit under §11-21-25 of this code, regardless of whether a claim is filed under that section, and who files a claim under this section.
“Emergency responder” has the meaning given in §11-21-25 of this code.
“Taxpayer” means any person subject to the tax imposed under this article.
(c) Except as provided in subsection (d) of this section, there is allowed to every taxpayer a credit against the taxes under this article an amount equal to $20 for each hour of course-work time, up to 25 hours, that the taxpayer spends participating in those activities in the taxable year to which the claim relates.
(d)(1) The maximum credit that a taxpayer may claim each year under this section is $500. A taxpayer shall provide certification from the department for which he or she serves to the Tax Commissioner, on a form prescribed by the commissioner, of the hours of course-work time and that the taxpayer has complied with the requirements of §11-21-25(d)(1) and submits the certification with the taxpayer’s return.
(2) No credit may be claimed under this section by a part-year resident or a nonresident of this state.
(3) A credit is not allowed under this section for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.
(e) For any taxable year the taxpayer is eligible to claim the credits under this section and §11-21-25 or §11-21-27 of this code, or both, the taxpayer may claim one credit under each section for that taxable year and may claim only one credit under each section regardless of the number of positions the taxpayer holds that makes the taxpayer eligible to claim the credits.
(f) If the amount of the credit calculated under subsection (c) of this section exceeds the tax otherwise due under this article, the amount of the credit calculated not used to offset the tax due shall be refunded to the taxpayer.
(g) If it appears upon audit or otherwise that any person has taken the credit against tax allowed under this section and was not entitled to take the credit, then the credit improperly taken under this article shall be recaptured. Amended returns shall be filed for any tax year for which the credit was improperly taken. Any additional taxes due under this chapter shall be remitted with the amended return or returns filed with the Tax Commissioner, along with interest, and other penalties and additions to tax as may be applicable pursuant to the provisions of §11-10-1 et seq. of this code.
(h) Notwithstanding the provisions of article §11-10-1 et seq. of this code, penalties and additions to tax imposed under that article may be waived at the discretion of the Tax Commissioner, unless the interest is not subject to waiver.
(i) The Tax Commissioner may adopt or propose, as appropriate, interpretive, procedural and legislative rules, in accordance with the provisions of §29A-3-1 et seq. of this code, the commissioner considers necessary to carry out the purposes of this section.
(j) This section is effective for tax years beginning on or after January 1, 2021.
§11-21-27. Emergency Responder Mileage and Equipment Tax Credit.
(a) This section may be known and cited as the “Emergency Responder Mileage and Equipment Tax Credit Act”.
(b) As used in this section:
“Commissioner” or “Tax Commissioner” means the Tax Commissioner of the State of West Virginia or the Tax Commissioner’s delegate.
“Eligible taxpayer” means an emergency responder who is eligible to claim the credit under §11-21-25 of this code, regardless of whether a claim is filed under that section, and who files a claim under this section.
“Emergency responder” has the meaning given in §11-21-25 of this code.
“Expenses” means unreimbursed expenses, not to exceed $200, incurred by the taxpayer for gear and equipment, in the year to which the claim relates, that are primarily for his or her use while serving as an emergency responder.
“Mileage” means the number of unreimbursed miles traveled by a taxpayer in his or her personal vehicle to attend training related to service as an emergency responder, multiplied by the mileage rate.
“Mileage rate” means the standard mileage reimbursement rate for business, set by the Internal Revenue Service, that applies under federal law for the taxable year to which the claim relates.
“Taxpayer” means any person subject to the tax imposed under this article.
(c) Except as provided in subsection (d) of this section, there is allowed to every eligible taxpayer a credit against the taxes under this article in the amount equal to the sum of the taxpayer’s mileage for the taxable year for which the claim is made and expenses incurred in that year.
(d)(1) The maximum credit that a taxpayer may claim each year under this section is $400.
(2) No taxpayer may claim the credit under this section unless the taxpayer is in good standing with the department for which he or she serves.
(3) No taxpayer may claim the credit under this section unless the individual in charge of the department for which the taxpayer serves approves the expenses and mileage for which the claim is made.
(4) No taxpayer may claim the credit under this section unless the taxpayer provides, on a form prescribed by the Tax Commissioner, certification from the department for which he or she serves of the taxpayer’s compliance with subdivision (2) of this subsection and of the approval under subdivision (3) of this subsection. The taxpayer shall submit the certification with the taxpayer's return.
(5) A credit may not be claimed under this section by a part-year resident or a nonresident of this state.
(6) A credit is not allowed under this section for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.
(e) For any taxable year the taxpayer is eligible to claim the credits under this §11-21-26 or §11-21-27 of this code, or both, the taxpayer may claim one credit under each section for that taxable year and may claim only one credit under each section regardless of the number of positions the taxpayer holds that makes the taxpayer eligible to claim the credits.
(f) If the amount of the credit calculated under section (c) of this section exceeds the tax otherwise due under this article, the amount of the credit calculated not used to offset the tax due shall be refunded to the taxpayer.
(g) If it appears upon audit or otherwise that any person has taken the credit against tax allowed under this section and was not entitled to take the credit, then the credit improperly taken under this article shall be recaptured. Amended returns shall be filed for any tax year for which the credit was improperly taken. Any additional taxes due under this chapter shall be remitted with the amended return or returns filed with the Tax Commissioner, along with interest, and other penalties and additions to tax as may be applicable pursuant to the provisions of §11-10-1 et seq. of this code.
(h) Notwithstanding the provisions of article §11-10-1 et seq. of this code, penalties and additions to tax imposed under that article may be waived at the discretion of the Tax Commissioner, unless the interest is not subject to waiver.
(i) The Tax Commissioner may adopt or propose, as appropriate, interpretive, procedural, and legislative rules, in accordance with the provisions of §29A-3-1 et seq. of this code, the commissioner considers necessary to carry out the purposes of this section.
(j) This section is effective for tax years beginning on or after January 1, 2021.
NOTE: The purpose of this bill is to create three refundable tax credits for volunteer fire fighters, emergency medical responders, emergency medical services practitioners, and ambulance drivers for qualifying service, training expenses, and mileage expenses.
Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.
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