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