H. B. 4074
(By Mr. Speaker, Mr. Kiss, and Delegates Fleischauer,
Caputo, C. White, Leach, Poling and Boggs)
[Introduced January 17, 2002; referred to the
Committee on Finance.]
A BILL to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article twenty-one-a,
relating to the "West Virginia Earned Income Tax Credit Act";
providing for a tax credit equal to twenty percent of the
earned income credit allowed under section thirty-two of the
Internal Revenue Code; providing the credit is allowed exceeds
the tax, that it is treated as an overpayment; authorizing
spouses who file separately to apply the credit as they elect;
requiring the tax commissioner to provide notice to eligible
taxpayers regarding their eligibility; and, requiring the tax
commissioner to prepare a written report regarding the credit.
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended by adding thereto
a new article, designated article twenty-one-a, to read as follows:
ARTICLE 21A. WEST VIRGINIA EARNED INCOME TAX CREDIT.
§11-21A-1. Short title.
This article shall be called the West Virginia Earned Income
Tax Credit.
§11-21A-2. Earned income tax credit.
(a) A resident taxpayer shall be allowed a tax credit equal to
twenty percent of the earned income credit allowed under section
thirty-two of the Internal Revenue Code, as amended and in effect
for the current taxable year.
(b) The credit under this article shall be allowed against the
taxes imposed by this chapter for the taxable year reduced by other
credits permitted by this article. If the credit exceeds the tax
as so reduced, the tax commissioner shall treat the excess as an
overpayment, and shall pay the resident taxpayer, without interest,
the amount of the excess.
(c) In the case of a husband and wife who file their state tax
returns separately, the credit allowed pursuant to this article may
be applied against the tax of either, or divided between them, as
they elect.
(d) The tax commissioner shall make efforts every year to
alert resident taxpayers who may be eligible to receive the credit
under this article. In making a determination as to whether a
taxpayer may be eligible for a credit, the tax commissioner shall
use the data as may be appropriate and available, including, but
not limited to, data available from the United States Department of
Treasury, the Internal Revenue Service, and state income tax
returns from preceding tax years.
(e) The tax commissioner shall prepare a written report each
year which will contain statistical information regarding the
credits granted for the prior calender year. The reports shall
contain, but need not be limited to, the total amount of revenue
expended on the earned income tax credit; the number of credits
claimed; and the average value of the credits granted to taxpayers
whose earned income falls within various income ranges.
(f) The provisions of this article shall take effect for
taxable years two thousand three and each year thereafter.
NOTE: The purpose of this bill is to create the
"West
Virginia Earned Income Tax Credit Act". The bill provides for a
tax credit equal to twenty percent of the earned income credit
allowed under section thirty-two of the Internal Revenue Code. It also provides that if the credit allowed exceeds the tax, that it
is treated as an overpayment. The bill further authorizes spouses
who file separately to apply the credit as they elect. It requires
the tax commissioner to provide notice to eligible taxpayors
regarding their eligibility for the credit and it also requires the
tax commissioner to prepare a written report regarding the credit.
This article
is new; therefore, strike-throughs and
underscoring have been omitted.
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