H. B. 3165
(By Delegates Cann, Stalnaker, White, Kominar, Reynolds, Webster,
Palumbo, Craig, Anderson, Evans and Doyle)
[Introduced January 9, 2008
; referred to the
Committee on Finance.]
A BILL to amend the code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-21-10b, all
relating to personal income tax; and enacting the College
Graduate Tax Credit.
Be it enacted by the Legislature of West Virginia:
That the code of West Virginia, 1931, as amended, be amended
and reenacted by adding thereto a new section, designated §11-21-
10b, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-10b.College Graduate Tax Credit. -- A credit shall be
allowed against the tax imposed by this article equal to the amount
of principal and interest paid by graduates of qualified
institutions of higher learning for repayment of qualified student
loans used to pay for qualified education expense incurred to
attend such qualified institutions of higher learning. This credit
shall be available for taxpayers graduating on or after the first day of January, two-thousand seven and shall be applied in the year
of graduation from a qualified institution of higher learning, and
for the next succeeding nine tax years following graduation from a
qualified institution of higher learning. The annual tax credit
authorized by this section shall be equal to the lesser of one-
tenth of the principal amount of the graduate's qualified student
loans, plus interest paid in the tax year, or the amount of
principal and interest paid during the tax year, but shall not
exceed the taxpayer's personal income tax liability as calculated
under the provisions of this article for the tax year for which the
credit is claimed.
Any annual credit remaining after application of
the credit in any tax year may not be carried-over to another
succeeding tax year nor carried-back to a prior tax year but shall
be forfeited. Only qualified student loans used to obtain a
baccalaureate degree, a graduate degree or a professional degree
from a qualified institution of higher learning are eligible for
the credit allowed by this section. Only qualified student loans
with interest liability of six hundred dollars or more annually are
eligible for the credit allowed by this section. Only the
individual graduate is eligible for the credit allowed by this
section.
(b)
Definitions.
(b)(1) "
Graduate" means a graduate of a qualified institution of
higher learning who has been awarded a baccalaureate degree, a
graduate degree or a professional degree by the qualified
institution of higher learning.
(b)(2) "
Qualified education expense" means the cost of tuition and
fees, room and board, books, and necessary supplies and equipment
directly related to the course of education pursued at a qualified
institution of higher learning.
(b)(3) "
Qualified institution of higher learning" means an
institution that instructs students and awards baccalaureate
degrees or graduate degrees or professional degrees, and which
holds accreditation by an accrediting
agency or association
determined by the United States secretary of education, under
section one-thousand ninety-nine-b, title twenty, United States
Code, to be
a reliable authority for accreditation
.
(b)(4) "Qualified student loan" means a loan taken out in the name
of the taxpayer claiming the credit authorized by this section, and
used solely to pay qualified education expenses for education
resulting in the award of a baccalaureate degree, a graduate degree
or a professional degree by a qualified institution of higher
learning.
(c) Administration.
(c)(1) For purposes of administering the provisions of this
section, Internal Revenue Service Form 1098E shall be used to
provide the necessary information relating to the identity of the
graduate claiming the credit and the qualified student loan
interest amount. The tax commissioner may prescribe such other
forms, schedules, returns or filings as the tax commissioner may
deem appropriate for claims of this credit.
NOTE: The purpose of this bill is to provide for a credit
against West Virginia personal income tax liability in the amount
of payments made on student loans.
West Virginia Code §11-21-10b is new; therefore,
strike-throughs and underscoring have been omitted.