FISCAL NOTE
Date Requested: February 18, 2026
Time Requested: 02:37 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2285 |
Comm. Sub. |
HB4517 |
|
|---|
| 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 maximize utility and accessibility of West Virginia’s child care tax credit for employers.
According to our interpretation, this bill would double the existing capital investment employer child credit from 50 percent to 100 percent, maintain the existing operating cost credit at 50 percent, and add a non-refundable childcare credit equivalent to 50 percent of the employer’s program contributions to the Tri-Share Child Care Program. In 2025, West Virginia implemented the Tri-Share Child Care Program in eight counties under which a business offers financial support toward an employee’s monthly childcare cost that the State matches based on the employer’s contribution and the employee’s household income. The eight counties where this program exists are Boone, Jackson, Kanawha, Lincoln, Mason, Putnam, Roane, and Wirt. The Tri-Share Child Care Program splits the cost of childcare three ways – between the State, the employer, and employee.
The current tax credits became effective as of July 1, 2022. Although there has been interest in these credits, there have been limited claims to date. As structured, the tax credits are anticipated to be claimed by some larger employers, particularly nonprofit corporations. However, the addition of the proposed childcare credit based on contributions to the Tri-Share Child Care program may generate more interest in this credit, as the State currently subsidizes one-third of the cost of childcare through this program. The maximum annual benefit per family through the Tri-Share Child Care Program is $8,000 per year and the average cost of childcare annually is $9,600 per year. Based on the level of participation in the Tri-Share Child Care Program, reductions in General Revenue Fund collections may be significant in future fiscal years.
Additional administrative costs incurred by the State Tax Division would be $22,000 in FY2027 and $11,000 per year in FY2028 and 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 |
22,000 |
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 |
22,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill would double the existing capital investment employer child credit from 50 percent to 100 percent, maintain the existing operating cost credit at 50 percent, and add a non-refundable childcare credit equivalent to 50 percent of the employer’s program contributions to the Tri-Share Child Care Program. In 2025, West Virginia implemented the Tri-Share Child Care Program in eight counties under which a business offers financial support toward an employee’s monthly childcare cost that the State matches based on the employer’s contribution and the employee’s household income. The eight counties where this program exists are Boone, Jackson, Kanawha, Lincoln, Mason, Putnam, Roane, and Wirt. The Tri-Share Child Care Program splits the cost of childcare three ways – between the State, the employer, and employee.
The current tax credits became effective as of July 1, 2022. Although there has been interest in these credits, there have been limited claims to date. As structured, the tax credits are anticipated to be claimed by some larger employers, particularly nonprofit corporations. However, the addition of the proposed childcare credit based on contributions to the Tri-Share Child Care program may generate more interest in this credit, as the State currently subsidizes one-third of the cost of childcare through this program. The maximum annual benefit per family through the Tri-Share Child Care Program is $8,000 per year and the average cost of childcare annually is $9,600 per year. Based on the level of participation in the Tri-Share Child Care Program, reductions in General Revenue Fund collections may be significant in future fiscal years.
Additional administrative costs incurred by the State Tax Division would be $22,000 in FY2027 and $11,000 per year in FY2028 and thereafter.
Memorandum
The stated purpose of this bill is to maximize utility and accessibility of West Virginia’s child care tax credit for employers.
It is unclear what purpose is served by excepting “employer sponsored” childcare facilities to the proximity or employee usage thresholds when both thresholds have been amended by the bill to be more accommodating to “employer sponsored” childcare facilities. It is also unclear employers could receive that tax credits for other children for childcare if “employee sponsored” childcare facilities were excepted from the employee usage threshold.
The reference to “applicable state business taxes” in the proposed Tri-Share Childcare Program Tax Credit is unclear. Presumably, the phrase means income taxes to be paid by the business such as Personal Income Tax or Corporation Net Income Tax, depending on the type of entity, however, the phrase may be interpreted to mean any and all state taxes owned by the business.
Person submitting Fiscal Note: Peter Shirley
Email Address: RADfiscal@wv.gov