FISCAL NOTE

Date Requested: January 20, 2023
Time Requested: 09:38 AM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1067 Introduced HB2393
CBD Subject:


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 extend the Neighborhood Investment Program Act to July 1, 2028 and to increase the program’s aggregate limit for the tax credit from $3,000,000 to $6,000,000. According to our interpretation of this bill, the maximum allowable credit under the Neighborhood Investment Program would be increased from $3,000,000 to $6,000,000 and the termination date of this tax credit would be changed from July 1, 2026, to July 1, 2028. This tax credit will continue to offset Personal Income Tax and Corporation Net Income Tax liabilities. Currently the Neighborhood Investment Tax Credit costs $3.0 million per year. Passage of this bill would result in a $3.0 million loss to the General Revenue Fund in FY2024 and subsequent fiscal years. Additional administrative costs incurred by the State Tax Department would be $1,000 in FY2026 and in subsequent fiscal years.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2023
Increase/Decrease
(use"-")
2024
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 1,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 1,000
2. Estimated Total Revenues 0 -3,000,000 -3,000,000


Explanation of above estimates (including long-range effect):


According to our interpretation of this bill, the maximum allowable credit under the Neighborhood Investment Program would be increased from $3,000,000 to $6,000,000 and the termination date of this tax credit would be changed from July 1, 2026 to July 1, 2028. This tax credit will continue to offset Personal Income Tax and Corporation Net Income Tax liabilities. Currently the Neighborhood Investment Tax Credit costs $3.0 million per year. Passage of this bill would result in a $3.0 million loss to the General Revenue Fund in FY2024 and subsequent fiscal years. Additional administrative costs incurred by the State Tax Department would be $1,000 in FY2026 and in subsequent fiscal years



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov