FISCAL NOTE
Date Requested: February 25, 2021
Time Requested: 11:21 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2988 |
Introduced |
SB446 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to extend the Neighborhood Investment Program Act to July 1, 2026 and to increase the program’s aggregate limit for the tax credit from $3,000,000 to $5,000,000.
According to our interpretation of this bill, the maximum allowable credit under the Neighborhood Investment Program would be increased from $3,000,000 to $5,000,000 and the termination date of this tax credit would be changed from July 1, 2021 to July 1, 2026. This tax credit will continue to offset Personal Income Tax and Corporation Net Income Tax liabilities. Currently the Neighborhood Investment Tax Credit costs $3.0 million per year. Passage of this bill would result in a $2.0 million loss to the General Revenue Fund in FY2023 and subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $10,000 in FY2022.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
10,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
10,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-2,000,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation of this bill, the maximum allowable credit under the Neighborhood Investment Program would be increased from $3,000,000 to $5,000,000 and the termination date of this tax credit would be changed from July 1, 2021 to July 1, 2026. This tax credit will continue to offset Personal Income Tax and Corporation Net Income Tax liabilities. Currently the Neighborhood Investment Tax Credit costs $3.0 million per year. Passage of this bill would result in a $2.0 million loss to the General Revenue Fund in FY2023 and subsequent fiscal years.
Additional administrative costs incurred by the State Tax Department would be $10,000 in FY2022.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov