H. B. 3139
(By Delegate Michael)
[Introduced March 30, 2001; referred to the
Committee on Finance.]
A BILL to amend and reenact section ten-a, article twenty-one,
chapter eleven of the West Virginia code specifying that
credit taken in any tax year shall not exceed the personal
income tax liability for that tax year; specifying that if any
credit allowable under the said section remains after
application in the year of a qualifying nonfamily adoption and
the next succeeding two taxable years, the amount thereof
shall be forfeited; specifying no carryover of credit to a tax
year subsequent to the second tax year after the year of a
qualifying nonfamily adoption, and no carryback to any tax
year shall be allowed for any unused portion of credit allowed
under the said section, to read as follows:
Be it enacted by the Legislature of West Virginia:
That section ten-a, article twenty-one, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
PART I. GENERAL.
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-10a. Credit for nonfamily adoption.
(a) A one time credit against the tax imposed by the
provisions of this article shall be allowed as follows:
(1)
Nonfamily adoptions. -- For nonfamily adoptions, the
credit is equal to two thousand dollars which may be taken in the
year of the adoption of each nonfamily child, whose age at adoption
is under eighteen years. This credit may, at the option of the
taxpayer, be taken over a period of three years.
(b) For the purpose of this section and credit "nonfamily
adoptions" means adoptions of a child or children by a taxpayer or
taxpayers which child or children are not related to the taxpayer
or taxpayers by blood or marriage.
(c) The total credit taken by any taxpayer in any taxable year
under this section may not exceed the taxpayer's personal income
tax liability for that tax year. If any credit allowable under
this section remains after application in the year of the
qualifying nonfamily adoption giving rise to entitlement to the
credit and the next succeeding two taxable years, the amount
thereof shall be forfeited. No carryover to a taxable year
subsequent to the second taxable year after the year of a
qualifying nonfamily adoption shall be allowed for any unused portion of the credit allowed under this section. No carryback to
any taxable year shall be allowed for the amount of any unused
portion of any credit allowed under this section.
(d) Effective date. -- The amendments to this section enacted
in the year two thousand one are effective for and apply to tax
credit resulting from qualifying nonfamily adoptions occurring in
taxable years beginning after the thirty-first day of December, two
thousand.
NOTE: The purpose of this bill is to limit the nonfamily
adoption tax credit in any tax year to not exceed the personal
income tax liability of the claimant(s) for the tax year, to
expressly specify that credit unused after the three-year
application period is forfeited, limit credit carryover and
prohibit credit carryback.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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