FISCAL NOTE
Date Requested: March 02, 2021
Time Requested: 11:43 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2974 |
Introduced |
SB532 |
|
|---|
| 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 establish limitations on claims for tax credits or rebates for based upon capital investments in order to prevent duplicate claims.
According to our interpretation of this bill, the provisions of this bill would clarify that taxpayers do not qualify for multiple separate tax credits related to the same capital investment. The bill grants rule-making authority to the Tax Commissioner in denying additional tax credits and rebates for which the capital investment was already claimed. Current tax credits related to capital investments such as the Manufacturing Investment Tax Credit and the Economic Opportunity Tax Credit continue to be monitored by the Tax Department to prevent duplicate claims on capital investments. Most but not all current tax credit statutes prohibit multiple tax credit claims for the same investment. We are not currently aware of any attempt by current taxpayers to use multiple tax credit on the same investment. However, the Tax Department did receive claims of multiple tax credit on the same investment a few years ago when the Alternative Fuel Motor Tax Credit was active.
Additional administrative costs to the General Revenue Fund are $15,000 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 |
15,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
15,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation of this bill, the provisions of this bill would clarify that taxpayers do not qualify for multiple separate tax credits related to the same capital investment. The bill grants rule-making authority to the Tax Commissioner in denying additional tax credits and rebates for which the capital investment was already claimed. Current tax credits related to capital investments such as the Manufacturing Investment Tax Credit and the Economic Opportunity Tax Credit continue to be monitored by the Tax Department to prevent duplicate claims on capital investments. Most but not all current tax credit statutes prohibit multiple tax credit claims for the same investment. We are not currently aware of any attempt by current taxpayers to use multiple tax credit on the same investment. However, the Tax Department did receive claims of multiple tax credit on the same investment a few years ago when the Alternative Fuel Motor Tax Credit was active.
Additional administrative costs to the General Revenue Fund are $15,000 in FY2022.
Memorandum
The stated purpose of this bill is to establish limitations on claims for tax credits or rebates for based upon capital investments in order to prevent duplicate claims.
The bill effectively “grandfathers in” capital investments used to claim more than one credit or rebate until its effective date, but this practice has not been specifically prohibited.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov