FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 06:44 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1618 |
Introduced |
HB4188 |
|
|---|
| 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 create a tax credit for companies who donate to pregnancy and birthing centers in this state.
If a tax credit is given to businesses equivalent to 100 percent of any donation amount to a birthing center or pregnancy center in the State, there is a potential loss in General Revenue in the amount of $4.5 million per year. If there is no cap on the tax credit, it will continue to grow every year as more taxpayers become aware and utilize it. The proposed 100 percent credit would be far less efficient than a State appropriation of similar value to birthing or pregnancy centers.
Administrative costs incurred by the State Tax Division are expected to be $16,500 in FY2027 and $11,000 thereafter.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
16,500 |
11,000 |
| Personal Services |
0 |
0 |
11,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
16,500 |
0 |
| 2. Estimated Total Revenues |
0 |
-4,500,000 |
-4,500,000 |
Explanation of above estimates (including long-range effect):
If a tax credit is given to businesses equivalent to 100 percent of any donation amount to a birthing center or pregnancy center in the State, there is a potential loss in General Revenue in the amount of $4.5 million per year. If there is no cap on the tax credit, it will continue to grow every year as more taxpayers become aware and utilize it. The proposed 100 percent credit would be far less efficient than a State appropriation of similar value to birthing or pregnancy centers.
Administrative costs incurred by the State Tax Division are expected to be $16,500 in FY2027 and $11,000 thereafter.
Memorandum
The stated purpose of this bill is to create a tax credit for companies who donate to pregnancy and birthing centers in this state.
The bill lacks specificity sufficient to administer the tax credit. The taxes against which the credit may be taken are not stated. Though the credit is available to “companies” only, many companies are operated as pass-throughs. It is unclear whether pass-throughs are candidates for the credit. Pass-throughs are subject to personal income tax. The bill is lacking a definition for “eligible companies”. Chapter 16, Article 2E, Sections 1-5 have been repealed, leaving no definitions for “birthing center” or “pregnancy center”.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov