FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 06:34 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1033 |
Introduced |
HB4153 |
|
|---|
| CBD Subject: |
Labor |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill relates to the creation of the West Virginia Skilled and Ready to Work Internship and Apprenticeship Incentive Act.
According to our interpretation, passage of this bill would create a 50 percent wage tax credit up to $10,000 per qualified employee for employers who provide a qualified internship or apprenticeship training program. The “Qualified Internship or Apprenticeship means a structured, paid work-based learning experience that is registered with the West Virginia Department of Economic Development or the U.S. Department of Labor.” No employer may claim more than $150,000 in tax credits per year. Unused tax credits may be carried forward for up to two consecutive years. We are unable to fully quantify the cost of this bill partly because the proposed tax credits would not necessarily be limited to activity within West Virginia but only limited by state income taxes paid in West Virginia.
There were 3,626 registered apprentices in West Virginia in FY2025, and 44 percent of these apprentices work in the construction industry. The State currently provides a separate Apprenticeship Training Tax Credit for the construction trades not to exceed up to 50 percent of actual wages paid or $2,000 at a cost of roughly $300,000 per year. If these employers in the construction industry can take full advantage of this new additional tax credit, the additional revenue loss associated with existing tax credit claiming apprenticeships could be as high as $1.5 million per year. We would expect the more generous tax credit to attract more interest from such employers. We do not possess accurate details on the number of paid internships in the private sector within West Virginia that would qualify for additional tax credits. Given both known and unknown parameters, we expect the total cost of this proposed tax credit to exceed $3.0 million per year if we include qualified employers who employ apprentices in construction (44.0 percent), health care (14.3 percent), manufacturing (5.6 percent) and utilities (3.4 percent).
The State of Missouri offers a similar tax credit of $1,500 per intern with a total cap of no more than $9,000 per employer and a statewide cap of no more than $1 million in total tax credits authorized in a single year.
Additional administrative costs incurred by the State Tax Department would be $40,650 in FY2027 and $22,500 per year in FY2028 and thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
40,650 |
22,500 |
| Personal Services |
0 |
22,500 |
22,500 |
| Current Expenses |
0 |
1,650 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
16,500 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would create a 50 percent wage tax credit up to $10,000 per qualified employee for employers who provide a qualified internship or apprenticeship training program. The “Qualified Internship or Apprenticeship means a structured, paid work-based learning experience that is registered with the West Virginia Department of Economic Development or the U.S. Department of Labor.” No employer may claim more than $150,000 in tax credits per year. Unused tax credits may be carried forward for up to two consecutive years. We are unable to fully quantify the cost of this bill partly because the proposed tax credits would not necessarily be limited to activity within West Virginia but only limited by state income taxes paid in West Virginia.
There were 3,626 registered apprentices in West Virginia in FY2025, and 44 percent of these apprentices work in the construction industry. The State currently provides a separate Apprenticeship Training Tax Credit for the construction trades not to exceed up to 50 percent of actual wages paid or $2,000 at a cost of roughly $300,000 per year. If these employers in the construction industry can take full advantage of this new additional tax credit, the additional revenue loss associated with existing tax credit claiming apprenticeships could be as high as $1.5 million per year. We would expect the more generous tax credit to attract more interest from such employers. We do not possess accurate details on the number of paid internships in the private sector within West Virginia that would qualify for additional tax credits. Given both known and unknown parameters, we expect the total cost of this proposed tax credit to exceed $3.0 million per year if we include qualified employers who employ apprentices in construction (44.0 percent), health care (14.3 percent), manufacturing (5.6 percent) and utilities (3.4 percent).
The State of Missouri offers a similar tax credit of $1,500 per intern with a total cap of no more than $9,000 per employer and a statewide cap of no more than $1 million in total tax credits authorized in a single year.
Additional administrative costs incurred by the State Tax Department would be $40,650 in FY2027 and $22,500 per year in FY2028 and thereafter.
Memorandum
The stated purpose of this bill relates to the creation of the West Virginia Skilled and Ready to Work Internship and Apprenticeship Incentive Act.
This bill provides a “tax credit of 50% of the wages paid to each qualified intern or apprentice, up to $10,000 per intern or apprentice per taxable year”. This language is unclear and probably would gain clarity if it was worded as “a tax credit in the amount of 50%”. The bill is silent regarding whether any credit remains after the extended carry forward period is forfeited.
The bill provides rulemaking authority for the Department of Economic Development, but not for the Tax Commissioner. There is also no internal effective date.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov