FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 06:45 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1731 |
Introduced |
HB4191 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
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 is to increase the tax credit for employers providing child care for employees.
According to our interpretation, this bill would increase the credits for capital investment in a childcare facility and operating costs of a childcare facility from 50 percent to 100 percent. The current tax credits related to capital investments and operating costs are at 50 percent. Increasing the tax credits to 100 percent effectively transfers the full cost of qualified activity to the State.
Passage of this bill would likely yield a reduction in the General Revenue Fund of some significance beginning in FY2027 largely due to the expansion of the current tax credits related to capital investment and operating costs of a childcare facility. The current tax credits became effective as of July 1, 2022. Although there has been interest in these credits, there have been limited claims to date. As structured, the tax credits are anticipated to be claimed by some larger employers, particularly nonprofit corporations.
Additional administrative costs incurred by the State Tax Department would be $22,000 in FY2026 and $12,650 per year in FY2027 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 |
16,500 |
11,000 |
| Personal Services |
0 |
0 |
11,000 |
| Current Expenses |
0 |
0 |
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):
Passage of this bill would likely yield a reduction in the General Revenue Fund of some significance beginning in FY2027 largely due to the expansion of the current tax credit for operating a childcare facility through the creation of a new alternative tax credit at double the value of the current tax credits. The current tax credits became effective as of July 1, 2022. Although there has been interest in these credits, there have been limited claims to date. As structured, the tax credits are anticipated to be claimed by some larger employers, particularly nonprofit corporations
Additional administrative costs incurred by the State Tax Department would be $22,000 in FY2026 and $12,650 per year in FY2027 and thereafter.
Memorandum
The stated purpose of this bill is to increase the tax credit for employers providing child care for employees.
This bill has no internal effective date.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov