H. B. 2101
(By Delegates Cann, Kominar, Reynolds, Craig, Anderson,
Evans and Doyle)
[Introduced February 11, 2009; referred to the
Committee on Education then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-21-10b, relating
to personal income tax; and enacting the College Graduate Tax
Credit.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-21-10b, to read as
follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-10b. College Graduate Tax Credit.
(a) A credit shall be allowed against the tax imposed by this
article equal to the amount of principal and interest paid by
graduates of qualified institutions of higher learning for
repayment of qualified student loans used to pay for qualified
education expense incurred to attend such qualified institutions of higher learning. This credit shall be available for taxpayers
graduating on or after January 1, 2009, and shall be applied in the
year of graduation from a qualified institution of higher learning,
and for the next succeeding nine tax years following graduation
from a qualified institution of higher learning. The annual tax
credit authorized by this section shall be equal to the lesser of
one-tenth of the principal amount of the graduate's qualified
student loans plus interest paid in the tax year, or the amount of
principal and interest paid during the tax year, but shall not
exceed the taxpayer's personal income tax liability as calculated
under the provisions of this article for the tax year for which the
credit is claimed. Any annual credit remaining after application
of the credit in any tax year may not be carried-over to another
succeeding tax year nor carried-back to a prior tax year but shall
be forfeited. Only qualified student loans used to obtain a
baccalaureate degree, a graduate degree or a professional degree
from a qualified institution of higher learning are eligible for
the credit allowed by this section. Only qualified student loans
with interest liability of $600 or more annually are eligible for
the credit allowed by this section. Only the individual graduate
is eligible for the credit allowed by this section.
(b) Definitions:
(1) "Graduate" means a graduate of a qualified institution of
higher learning who has been awarded a baccalaureate degree, a graduate degree or a professional degree by the qualified
institution of higher learning.
(2) "Qualified education expense" means the cost of tuition
and fees, room and board, books and necessary supplies and
equipment directly related to the course of education pursued at a
qualified institution of higher learning.
(3) "Qualified institution of higher learning" means an
institution that instructs students and awards baccalaureate
degrees, graduate degrees or professional degrees, and which holds
accreditation by an accrediting agency or association determined by
the United States Secretary of Education, under section one
thousand ninety-nine-b, title twenty, United States Code, to be a
reliable authority for accreditation.
(4) "Qualified student loan" means a loan taken out in the
name of the taxpayer claiming the credit authorized by this
section, and used solely to pay qualified education expenses for
education resulting in the award of a baccalaureate degree, a
graduate degree or a professional degree by a qualified institution
of higher learning.
(c) Administration: For purposes of administering the
provisions of this section, Internal Revenue Service Form 1098E
shall be used to provide the necessary information relating to the
identity of the graduate claiming the credit and the qualified
student loan interest amount. The Tax Commissioner may prescribe such other forms, schedules, returns or filings as the Tax
Commissioner may deem appropriate for claims of this credit.
NOTE: The purpose of this bill is to provide for a credit
against West Virginia personal income tax liability in the amount
of payments made on student loans.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.