FISCAL NOTE
Date Requested: February 04, 2026
Time Requested: 04:26 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2159 |
Introduced |
HB5169 |
|
|---|
| CBD Subject: |
Taxation; Domestic Relations |
|---|
|
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 create a state tax deduction for parents whose children qualify for a “Trump Account,” as set forth in 26 USC 530A.
This bill allows a decreasing modification for “any payment made by parents utilizing the Trump Account on behalf of their children”. Money Accounts for Growth and Advancement are commonly known as Trump accounts. Parents and guardians can add up to $5,000 annually to these accounts, but the deduction is only available to parents. This program is similar to an IRA, but there is no income limit for those choosing to participate. According to IRS data and based on West Virginia’s current tax rates, there is a loss of $2.0 million to the General Revenue Fund from IRA contributions. If the take-up behavior is similar to the take-up rates for IRA contributions, then contributions to Accounts for Growth and Advancement could result in a revenue loss of up to $1.0 million per year. However, absent significant assumptions, we cannot accurately estimate the revenue loss associated with this bill beginning in FY2028. Parents or guardians may open a Trump Account for any child under 18, but we have no information on how many parents or guardians would take advantage of this account.
Administrative costs to the Tax Division would be $18,150 in FY2027 and $44,800 in subsequent years.
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 |
18,150 |
44,800 |
| Personal Services |
0 |
0 |
44,800 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
16,500 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill allows a decreasing modification for “any payment made by parents utilizing the Trump Account on behalf of their children”. Money Accounts for Growth and Advancement are commonly known as Trump accounts. Parents and guardians can add up to $5,000 annually to these accounts, but the deduction is only available to parents. This program is similar to an IRA, but there is no income limit for those choosing to participate. According to IRS data and based on West Virginia’s current tax rates, there is a loss of $2.0 million to the General Revenue Fund from IRA contributions. If the take-up behavior is similar to the take-up rates for IRA contributions, then contributions to Accounts for Growth and Advancement could result in a revenue loss of up to $1.0 million per year. However, absent significant assumptions, we cannot accurately estimate the revenue loss associated with this bill beginning in FY2028. Parents or guardians may open a Trump Account for any child under 18, but we have no information on how many parents or guardians would take advantage of this account.
Administrative costs to the Tax Division would be $18,150 in FY2027 and $44,800 in subsequent years.
Memorandum
The stated purpose of this bill is to create a state tax deduction for parents whose children qualify for a “Trump Account,” as set forth in 26 USC 530A.
The bill specifically cites §18-30-9 (Income tax deduction for purchasers. [Education- ARTICLE 30. WEST VIRGINIA COLLEGE PREPAID TUITION AND SAVINGS PROGRAM ACT) and describes making “any payment made under a prepaid tuition contract or other college savings plan administered by the board, pursuant to the provisions of this article, is eligible for a tax deduction.” The bill would benefit from definitions which are not set forth. The undefined term “any payment” is potentially troublesome in a new program such as this on the federal level.
No internal effective date is stated. Per §11-10-5p, this bill should go into effect for tax year 2027.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov