FISCAL NOTE
Date Requested: January 28, 2026
Time Requested: 03:17 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3241 |
Introduced |
SB605 |
|
|---|
| CBD Subject: |
Education (K12); 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 tax credits for parents and legal guardians whose children are in a home-schooling program or private school. The bill provides for an exception. Finally, the bill provides rule-making authority.
Based on our interpretation, the proposed bill would provide a Personal Income Tax credit in the amount equivalent to what a student who is eligible for HOPE Scholarship would have received for providing one year of home schooling or private school for one or more children. The tax credit is limited to the amount each student would receive annually, regardless of the number of children schooled. In the 2024-25 school year, there are 34,000 children who are either homeschooled in West Virginia or attend private schools. Families who receive HOPE Scholarship do not qualify for the credit. There are currently approximately 19,000 children receiving HOPE Scholarship, but this number is expected to increase as all students become eligible for the HOPE Scholarship.
This proposed change would allow home school parents and some parents of private school children the ability to decline the HOPE Scholarship in cases where the education expenses of their children fall short of the maximum value of the HOPE Scholarship. Education expenses for home schooling may be less expensive than for other private school opportunities.
We are unable to accurately estimate the revenue impact of this bill on the General Revenue Fund. In the future, all students who are either homeschooled or in private school will be able to receive the HOPE Scholarship. Taxpayers who do not receive the HOPE Scholarship will be able to take a tax credit for the amount of the HOPE Scholarship, which is $5,267 for the 2025-2026 school year. However, the tax credit would be limited to the taxpayer’s tax liability. The overall cost of private education alternatives to the State would be somewhat higher as parents seek the option with greatest financial benefit.
Administrative costs incurred by the State Tax Division are estimated to be $39,000 for FY2026 and $22,500 in subsequent fiscal years.
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 |
39,000 |
22,500 |
| Personal Services |
0 |
22,500 |
22,500 |
| 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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Based on our interpretation, the proposed bill would provide a Personal Income Tax credit in the amount equivalent to what a student who is eligible for HOPE Scholarship would have received for providing one year of home schooling or private school for one or more children. The tax credit is limited to the amount each student would receive annually, regardless of the number of children schooled. In the 2024-25 school year, there are 34,000 children who are either homeschooled in West Virginia or attend private schools. Families who receive HOPE Scholarship do not qualify for the credit. There are currently approximately 19,000 children receiving HOPE Scholarship, but this number is expected to increase as all students become eligible for the HOPE Scholarship.
This proposed change would allow home school parents and some parents of private school children the ability to decline the HOPE Scholarship in cases where the education expenses of their children fall short of the maximum value of the HOPE Scholarship. Education expenses for home schooling may be less expensive than for other private school opportunities.
We are unable to accurately estimate the revenue impact of this bill on the General Revenue Fund. In the future, all students who are either homeschooled or in private school will be able to receive the HOPE Scholarship. Taxpayers who do not receive the HOPE Scholarship will be able to take a tax credit for the amount of the HOPE Scholarship, which is $5,267 for the 2025-2026 school year. However, the tax credit would be limited to the taxpayer’s tax liability. The overall cost of private education alternatives to the State would be somewhat higher as parents seek the option with greatest financial benefit.
Administrative costs incurred by the State Tax Division are estimated to be $39,000 for FY2026 and $22,500 in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to establish tax credits for parents and legal guardians whose children are in a home-schooling program or private school. The bill provides for an exception. Finally, the bill provides rule-making authority.
The bill does not address several issues, such as married filing jointly, divorced parents, and age of children. It also does not address whether the credit is refundable or for how many years the credit may be claimed.
The bill states that” families who are eligible for the HOPE Scholarhisp do not qualify for this tax credit.” However, there is no clear definition for “eligible” in the bill. The bill also does not address situations where families only receive partial HOPE Scholarship for a given year.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov