FISCAL NOTE
Date Requested: February 27, 2017 Time Requested: 10:31 AM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1626 |
Introduced |
HB2555 |
|
CBD Subject: |
Taxation |
---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to remove the requirement that programs be jointly administered by labor and management trustees in order to qualify for tax credits for apprenticeship training in construction trades.
According to our interpretation, passage of this bill would modify the current West Virginia Apprenticeship Training Tax Credit by removing the requirement that qualifying apprenticeship training programs be jointly administered by labor and management trustees. As a result, more taxpayers might qualify for this credit. However, we do not possess sufficient information to be able to measure the potential fiscal impact of this change. Between 2012 and 2015, an average of roughly 90 taxpayers claimed total tax credits averaging $350,000 per year under this program.
Additional administrative costs to the State Tax Department would be $38,100 in FY2018 and $32,000 in fiscal years thereafter.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2017 Increase/Decrease (use"-") |
2018 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
38,100 |
32,000 |
Personal Services |
0 |
32,000 |
32,000 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
1,100 |
0 |
Other |
0 |
5,000 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, passage of this bill would modify the current West Virginia Apprenticeship Training Tax Credit by removing the requirement that qualifying apprenticeship training programs be jointly administered by labor and management trustees. As a result, more taxpayers might qualify for this credit. However, we do not possess sufficient information to be able to measure the potential fiscal impact of this change. Between 2012 and 2015, an average of roughly 90 taxpayers claimed total tax credits averaging $350,000 per year under this program.
Additional administrative costs to the State Tax Department would be $38,100 in FY2018 and $32,000 in fiscal years thereafter.
Memorandum
The stated purpose of this bill is to remove the requirement that programs be jointly administered by labor and management trustees in order to qualify for tax credits for apprenticeship training in construction trades.
The bill deletes the subdivision which requires that the training program is jointly administered by labor and management trustees. The bill still specifies that the qualified apprenticeship training program is administered pursuant to 29 U.S.C. ยง50 and certified in accordance with the related regulations.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov