FISCAL NOTE
Date Requested: January 28, 2026
Time Requested: 04:43 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3071 |
Introduced |
HB4895 |
|
|---|
| 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 create a new $2,000 state income tax exemption, beginning in tax year 2027, for each unborn child carried by a resident individual.
The title of the bill is establishing an unborn child tax credit. However, the bill provides a tax exemption, not a credit. An exemption of $2,000 for an unborn child could reduce the State’s General Revenue Fund by $800,000 in FY2028 and in subsequent years.
There would be administrative costs for the Tax Division in the amount of $46,150 in FY2027 and $22,500 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 |
46,150 |
22,500 |
| Personal Services |
0 |
22,500 |
22,500 |
| 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 |
0 |
-800,000 |
Explanation of above estimates (including long-range effect):
The title of the bill is establishing an unborn child tax credit. However, the bill provides a tax exemption, not a credit. An exemption of $2,000 for an unborn child could reduce the State’s General Revenue Fund by $800,000 in FY2028 and in subsequent years.
There would be administrative costs for the Tax Division in the amount of $46,150 in FY2027 and $22,500 in subsequent years.
Memorandum
The stated purpose of this bill is to create a new $2,000 state income tax exemption, beginning in tax year 2027, for each unborn child carried by a resident individual.
The bill does not provide for any verification procedures for the defined “unborn child”. Administering a tax benefit contingent upon pregnancy status may present verification challenges for the Tax Division regarding proof of eligibility and the handling of miscarriages or stillbirths during the tax year.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov