FISCAL NOTE
Date Requested: January 28, 2026
Time Requested: 01:54 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3034 |
Introduced |
SB627 |
|
|---|
| CBD Subject: |
Economic Development |
|---|
|
FUND(S):
General Revenue Fund, Build WV Credit Reserve Fund
Sources of Revenue:
General Fund Build WV Credit Reserve Fund
Legislation creates:
Decreases Existing Revenue, Creates New Expense, 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 replace the Build WV project cost with a cap on new tax credit liability. The bill clarifies that the cost cap applies only to new project approvals; allows credit for smaller projects in rural areas; requires periodic review and adjustment to reflect demand and usage; and establishes a Build WV credit reserve fund adjusted annually.
The provisions of this bill would replace the maximum aggregate sum of approved costs of $150 million per year for all qualified BUILD WV Projects and replace this limitation with a calculated maximum of $2 million in approved property value adjustment tax credits each year. The overall limitations would be largely unchanged given that the total current Class III average tax on $150 million of appraised value would equal $1,971,000. The bill would also expand the program to allow for certification of projects with minimum investment of less than $3 million and with fewer than 6 housing units if such project were in a rural area with low population density generally outside of a metropolitan statistical area. The provisions of this bill would also establish a Build WV Credit Reserve Fund in the State Treasury with an initial capitalization of $2 million to provide refundable income tax credit payments to qualified investors. The maximum allowable refundable tax credit per qualified project remains at $100,000. Passage of this bill could result in some additional loss of revenue due to relaxed investment standards for program qualification in addition to the $2 million cost to initially fund the Build WV Credit Reserve Fund.
The Build WV program was created in 2022. Through the end of fiscal year 2025, there are 19 certified Build WV districts throughout the state in which projects may locate and apply for the tax credits. There are 29 approved projects participating in the program with an overall investment of $224,421,217. Because this bill exempts previously approved projects, and we cannot speculate on any future projects, we cannot reasonably estimate the revenue impact from this bill.
Additional costs incurred by the State Tax Division would be $1,100 in FY2027.
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 |
1,100 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
1,100 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The provisions of this bill would replace the maximum aggregate sum of approved costs of $150 million per year for all qualified BUILD WV Projects and replace this limitation with a calculated maximum of $2 million in approved property value adjustment tax credits each year. The overall limitations would be largely unchanged given that the total current Class III average tax on $150 million of appraised value would equal $1,971,000. The bill would also expand the program to allow for certification of projects with minimum investment of less than $3 million and with fewer than 6 housing units if such project were in a rural area with low population density generally outside of a metropolitan statistical area. The provisions of this bill would also establish a Build WV Credit Reserve Fund in the State Treasury with an initial capitalization of $2 million to provide refundable income tax credit payments to qualified investors. The maximum allowable refundable tax credit per qualified project remains at $100,000. Passage of this bill could result in some additional loss of revenue due to relaxed investment standards for program qualification in addition to the $2 million cost to initially fund the Build WV Credit Reserve Fund.
The Build WV program was created in 2022. Through the end of fiscal year 2025, there are 19 certified Build WV districts throughout the state in which projects may locate and apply for the tax credits. There are 29 approved projects participating in the program with an overall investment of $224,421,217. Because this bill exempts previously approved projects, and we cannot speculate on any future projects, we cannot reasonably estimate the revenue impact from this bill.
Additional costs incurred by the State Tax Division would be $1,100 in FY2027.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov