Senate Bill No. 451
(By Senators Barnes, Minard, Unger and White)
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[Introduced February 5, 2007; referred to the Committee on
Finance.]
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A BILL to amend and reenact §11-21-22b of the Code of West
Virginia, 1931, as amended, relating to the low-income tax
credit; and providing that for the two thousand seven tax
year, the qualified taxpayer shall be allowed to claim one
hundred percent of the amount of the tax credit.
Be it enacted by the Legislature of West Virginia:
That §11-21-22b of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-22b. Amount of credit.
(a) For each taxable year beginning on or after the first day
of January, two thousand seven, 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 the first day of January, two thousand seven, the
qualified taxpayer shall be allowed to claim only fifty percent of
the amount of the tax credit. one hundred percent of the 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 three hundred
dollars 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
three hundred dollars above the federal poverty guidelines but does
not exceed six hundred dollars 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
six hundred dollars above the federal poverty guidelines but does not exceed nine hundred dollars 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
nine hundred dollars above the federal poverty guidelines but does
not exceed one thousand two hundred dollars 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
one thousand two hundred dollars above the federal poverty
guidelines but does not exceed one thousand five hundred dollars
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
one thousand five hundred dollars above the federal poverty
guidelines but does not exceed one thousand eight hundred dollars
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
one thousand eight hundred dollars above the federal poverty guidelines but does not exceed two thousand one hundred dollars
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
two thousand one hundred dollars above the federal poverty
guidelines but does not exceed two thousand four hundred dollars
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
two thousand four hundred dollars above the federal poverty
guidelines but does not exceed two thousand seven hundred dollars
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
one hundred fifty dollars 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
one hundred fifty dollars above fifty percent of the federal
poverty guidelines but does not exceed three hundred dollars 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
three hundred dollars above fifty percent of the federal poverty
guidelines but does not exceed four hundred fifty dollars 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
four hundred fifty dollars above fifty percent of the federal
poverty guidelines but does not exceed six hundred dollars 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
six hundred dollars above fifty percent of the federal poverty
guidelines but does not exceed seven hundred fifty dollars 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
seven hundred fifty dollars above fifty percent of the federal
poverty guidelines but does not exceed nine hundred dollars 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
nine hundred dollars above fifty percent of the federal poverty
guidelines but does not exceed one thousand fifty dollars 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
one thousand fifty dollars above fifty percent of the federal
poverty guidelines but does not exceed one thousand two hundred
dollars 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
one thousand two hundred dollars above fifty percent of the federal
poverty guidelines but does not exceed one thousand three hundred
hundred fifty dollars 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.
NOTE: The purpose of this bill is to provide that for the two
thousand seven tax year, the qualified low income taxpayer shall be
allowed to claim one hundred percent of the amount of the tax
credit.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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