FISCAL NOTE
Date Requested: February 03, 2026
Time Requested: 04:39 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3254 |
Introduced |
HB5095 |
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| CBD Subject: |
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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 facilitate the purchase of reliable and affordable vehicles to low-income working West Virginia men and women to expand access to employment opportunities.
Based on our interpretation, the bill would create a refundable tax credit for an individual who donates an eligible vehicle or a licensed automobile dealer who donates or sells an eligible vehicle through a qualified charitable organization that assists low-income workers with transportation needs. The maximum amount of credit is the higher of the fair market value of the vehicle, the difference between the fair market value and the reduced sales price or a maximum of $6,000. A Qualified Charitable Organization is defined as a nonprofit under §501(c)(3) of the United State Code that is registered with the State of West Virginia and operates a program that assists low-income workers in this state with purchasing and financing affordable eligible vehicles.
The proposed bill creates a tax credit program which appears to closely approximate an existing tax credit program under W.Va. Code §11-13FF. The legislation has no internal effective date. However, it does refer to credit caps beginning with Tax Year 2026.
According to our interpretation, the legislation, if passed, would result in a decrease in General Revenue collection of up to $300,000 in FY2027 and FY2028, and up to $1 million in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $34,650 in FY2027 and $11,000 in subsequent fiscal 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 |
34,650 |
11,000 |
| Personal Services |
0 |
11,000 |
11,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,650 |
0 |
| Other |
0 |
22,000 |
0 |
| 2. Estimated Total Revenues |
0 |
-300,000 |
-1,000,000 |
Explanation of above estimates (including long-range effect):
Based on our interpretation, the bill would create a refundable tax credit for an individual who donates an eligible vehicle or a licensed automobile dealer who donates or sells an eligible vehicle through a qualified charitable organization that assists low-income workers with transportation needs. The maximum amount of credit is the higher of the fair market value of the vehicle, the difference between the fair market value and the reduced sales price or a maximum of $6,000. A Qualified Charitable Organization is defined as a nonprofit under §501(c)(3) of the United State Code that is registered with the State of West Virginia and operates a program that assists low-income workers in this state with purchasing and financing affordable eligible vehicles.
The proposed bill creates a tax credit program which appears to closely approximate an existing tax credit program under W.Va. Code §11-13FF. The legislation has no internal effective date. However, it does refer to credit caps beginning with Tax Year 2026.
According to our interpretation, the legislation, if passed, would result in a decrease in General Revenue collection of up to $300,000 in FY2027 and FY2028, and up to $1 million in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $34,650 in FY2027 and $11,000 in subsequent fiscal years to update personal and corporate tax credit schedules with instructions, do development and testing in the tax system, efforts to prevent fraud, and personnel costs associated with administering and reviewing the credits.
Memorandum
The stated purpose of this bill is to facilitate the purchase of reliable and affordable vehicles to low-income working West Virginia men and women to expand access to employment opportunities.
The bill states that “any person subject to the taxes imposed by the state of West Virginia…is entitled to a refundable credit…” but fails to specify the specific tax against which the credit may be applied.
This bill duplicates an existing statute.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov