FISCAL NOTE
Date Requested: January 28, 2026
Time Requested: 03:21 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3127 |
Introduced |
SB624 |
|
|---|
| 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.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to extend the sunset date for modification to personal and corporate income tax for qualified opportunity zone businesses.
This bill would change the sunset date from the tax periods that begin on and after January 1, 2024 to “the date qualified opportunity zones are no longer afforded federal tax relief as established by P.L. No. 115-97 as amended by P.L. No. 119-21.” The modification that this bill seeks to extend was approved during the special legislative session in 2019.
The opportunity zone program was created in 2019 and ceased in 2024. However, this bill would remove the sunset date. For periods ending December 31, 2020, through December 31, 2024, there were $7.8 million of qualified opportunity zone income modifications for pass through entities and $1.6 million for the personal income tax for an average annual revenue decrease of roughly $0.5 million at current tax rates.
Additional administrative costs to the State Tax Division would be $16,500 in FY2026.
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 |
16,500 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
16,500 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
This bill would change the sunset date from the tax periods that begin on and after January 1, 2024 to “the date qualified opportunity zones are no longer afforded federal tax relief as established by P.L. No. 115-97 as amended by P.L. No. 119-21.” The modification that this bill seeks to extend was approved during the special legislative session in 2019.
The opportunity zone program was created in 2019 and ceased in 2024. However, this bill would remove the sunset date. For periods ending December 31, 2020, through December 31, 2024, there were $7.8 million of qualified opportunity zone income modifications for pass through entities and $1.6 million for the personal income tax for an average annual revenue decrease of roughly $0.5 million at current tax rates.
Additional administrative costs to the State Tax Division would be $16,500 in FY2026.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
The stated purpose of this bill is to extend the sunset date for modification to personal and corporate income tax for qualified opportunity zone businesses.
The bill deletes reference to January 1, 2024 and replaces it with “the date qualified opportunity zones are no longer afforded federal tax relief as established by P.L. No. 115-97 as amended by P.L. No. 119-21.” By deleting the January 1, 2024 date, the bill creates uncertainty about whether the decreasing modifications are retroactively revived for tax years beginning on and after January 1, 2024.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov