Introduced Version
House Bill 2373 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2373
(By Delegate Fleischauer)
[Introduced February 13, 2013; referred to the
Committee on Finance.]
A BILL to repeal §11-21-22a of the Code of West Virginia, 1931, as
amended; to amend and reenact §11-21-22 and §11-21-22b of said
code, all relating to personal income tax; creating the West
Virginia Earned Income Tax Credit; and authorizing a
refundable tax credit based upon the federal earned income tax
credit.
Be it enacted by the Legislature of West Virginia:
That §11-21-22a of the Code of West Virginia, 1931, as amended
be repealed; that §11-21-22 and §11-21-22b of said code be amended
and reenacted, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-22. Working family tax credit Refundable West Virginia
__Earned Income Tax Credit.
In order to eliminate West Virginia personal income tax on
families with low incomes below the federal poverty guidelines and
to reduce the West Virginia personal income tax on working families
with moderate incomes that are immediately above the federal
poverty guidelines, there is hereby created a nonrefundable
refundable tax credit, to be known as the low-income family tax
credit, West Virginia Earned Income Tax Credit, against the West
Virginia personal income tax. The low-income family tax credit is
based upon family size and the federal poverty guidelines. The
low-income tax credit reduces the tax imposed by the provisions of
this article on families with modified federal adjusted gross
income below or near the federal poverty guidelines: Provided, That
for tax years beginning on and after January 1, 2009, any person
who is required to pay the federal alternative minimum income tax
in the current tax year is disqualified from receiving any tax
credit provided under this section. The West Virginia Earned Income
Tax Credit is based upon the federal earned income tax credit.
§11-21-22b. Eligibility; Amount of credit.
(a) For each taxable year beginning on or after January 1,
2007, the tax credit authorized by section twenty-two of this
article may be used by every qualified taxpayer and shall be
calculated in accordance with subsections (b) and (c) of this
section: Provided, That for the taxable year beginning on January
1, 2007, the qualified taxpayer shall be allowed to claim only fifty percent of the amount of the tax credit.
(b) Qualified taxpayers who file as an individual, as a head
of household, as a husband and wife who file a joint return, or as
an individual entitled to file as a surviving spouse shall be
entitled to a tax credit based on the following:
(1) If modified federal adjusted gross income is at or below
the federal poverty guidelines based on family size, the credit
shall be an amount equal to the amount of tax owed under this
article by the qualified taxpayer;
(2) If modified federal adjusted gross income is greater than
the federal poverty guidelines but does not exceed $300 above the
federal poverty guidelines based on family size, the amount of
credit allowable shall be ninety percent of the amount of tax owed
under this article by the qualified taxpayer;
(3) If modified federal adjusted gross income is greater than
$300 above the federal poverty guidelines but does not exceed $600
above the federal poverty guidelines based on family size, the
amount of credit allowable shall be eighty percent of the amount of
tax owed under this article by the qualified taxpayer;
(4) If modified federal adjusted gross income is greater than
$600 above the federal poverty guidelines but does not exceed $900
above the federal poverty guidelines based on family size, the
amount of credit allowable shall be seventy percent of the amount
of tax owed under this article by the qualified taxpayer;
(5) If modified federal adjusted gross income is greater than
$900 above the federal poverty guidelines but does not exceed
$1,200 above the federal poverty guidelines based on family size,
the amount of credit allowable shall be sixty percent of the amount
of tax owed under this article by the qualified taxpayer;
(6) If modified federal adjusted gross income is greater than
$1,200 above the federal poverty guidelines but does not exceed
$1,500 above the federal poverty guidelines based on family size,
the amount of credit allowable shall be fifty percent of the amount
of tax owed under this article by the qualified taxpayer;
(7) If modified federal adjusted gross income is greater than
$1,500 above the federal poverty guidelines but does not exceed
$1,800 above the federal poverty guidelines based on family size,
the amount of credit allowable shall be forty percent of the amount
of tax owed under this article by the qualified taxpayer;
(8) If modified federal adjusted gross income is greater than
$1,800 above the federal poverty guidelines but does not exceed
$2,100 above the federal poverty guidelines based on family size,
the amount of credit allowable shall be thirty percent of the
amount of tax owed under this article by the qualified taxpayer;
(9) If modified federal adjusted gross income is greater than
$2,100 above the federal poverty guidelines but does not exceed
$2,400 above the federal poverty guidelines based on family size,
the amount of credit allowable shall be twenty percent of the amount of tax owed under this article by the qualified taxpayer; or
(10) If modified federal adjusted gross income is greater than
$2,400 above the federal poverty guidelines but does not exceed
$2,700 above the federal poverty guidelines based on family size,
the amount of credit allowable shall be ten percent of the amount
of tax owed under this article by the qualified taxpayer.
(c) Qualified taxpayers who are husband and wife and who file
separate returns shall be entitled to a tax credit based on the
following:
(1) If modified federal adjusted gross income is at or below
fifty percent of the federal poverty guidelines based on family
size, the credit shall be an amount equal to the amount of tax owed
under this article by the qualified taxpayer;
(2) If modified federal adjusted gross income is greater than
fifty percent of the federal poverty guidelines but does not exceed
$150 above fifty percent of the federal poverty guidelines based on
family size, the amount of credit allowable shall be ninety percent
of the amount of tax owed under this article by the qualified
taxpayer;
(3) If modified federal adjusted gross income is greater than
$150 above fifty percent of the federal poverty guidelines but does
not exceed $300 above fifty percent of the federal poverty
guidelines based on family size, the amount of credit allowable
shall be eighty percent of the amount of tax owed under this article by the qualified taxpayer; (4) If modified federal
adjusted gross income is greater than $300 above fifty percent of
the federal poverty guidelines but does not exceed $450 above fifty
percent of the federal poverty guidelines based on family size, the
amount of credit allowable shall be seventy percent of the amount
of tax owed under this article by the qualified taxpayer;
(5) If modified federal adjusted gross income is greater than
$450 above fifty percent of the federal poverty guidelines but does
not exceed $600 above fifty percent of the federal poverty
guidelines based on family size, the amount of credit allowable
shall be sixty percent of the amount of tax owed under this article
by the qualified taxpayer;
(6) If modified federal adjusted gross income is greater than
$600 above fifty percent of the federal poverty guidelines but does
not exceed $750 above fifty percent of the federal poverty
guidelines based on family size, the amount of credit allowable
shall be fifty percent of the amount of tax owed under this article
by the qualified taxpayer;
(7) If modified federal adjusted gross income is greater than
$750 above fifty percent of the federal poverty guidelines but does
not exceed $900 above fifty percent of the federal poverty
guidelines based on family size, the amount of credit allowable
shall be forty percent of the amount of tax owed under this article
by the qualified taxpayer;
(8) If modified federal adjusted gross income is greater than
$900 above fifty percent of the federal poverty guidelines but does
not exceed $1,050 above fifty percent of the federal poverty
guidelines based on family size, the amount of credit allowable
shall be thirty percent of the amount of tax owed under this
article by the qualified taxpayer;
(9) If modified federal adjusted gross income is greater than
$1,050 above fifty percent of the federal poverty guidelines but
does not exceed $1,200 above fifty percent of the federal poverty
guidelines based on family size, the amount of credit allowable
shall be twenty percent of the amount of tax owed under this
article by the qualified taxpayer; or
(10) If modified federal adjusted gross income is greater than
$1,200 above fifty percent of the federal poverty guidelines but
does not exceed $1,350 above fifty percent of the federal poverty
guidelines based on family size, the amount of credit shall be ten
percent of the amount of tax owed under this article by the
qualified taxpayer.
(d) The Tax Commissioner shall develop and publish on an
annual basis two indexed tax credit tables. One tax table shall be
for qualified taxpayers who file as an individual, as a head of
household, as a husband and wife who file a joint return, or as an
individual entitled to file as a surviving spouse and one tax table
shall be for qualified taxpayers who are husband and wife and who file separate returns. The indexed tax credit tables shall be
based on subsections (b) and (c) of this section.
(a) For each taxable year beginning on or after January 1,
2013, a
West Virginia resident
who is eligible for the federal earned
income tax credit under Section 32 of the Internal Revenue Code is
eligible for a credit under this chapter equal to ten percent of
the amount of the federal earned income tax credit that the
individual:
_____(1) Is eligible to receive in the taxable year; and
_____(2) claimed for the taxable year; under Section 32 of the
Internal Revenue Code.
_______________(b) If other credits allowed are utilized by the taxpayer for
the taxable year, the West Virginia Earned Income Tax Credit shall
be applied last.
_______________(c) If the amount of the credit allowed exceeds the taxpayer's
West Virginia personal income tax liability, the commissioner shall
treat such excess as an overpayment and shall pay the taxpayer the
amount of such excess, without interest.
_______________(d) The commissioner shall make efforts every year to inform
taxpayers who may be eligible to receive the credit provided under
this section.
____________________
_______________NOTE: The purpose of this bill is to provide low and moderate
income workers with a refundable state tax credit based on the federal earned income tax credit. Current law provides for a
nonrefundable tax credit based on federal poverty guidelines.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.