FISCAL NOTE
Date Requested: January 21, 2026
Time Requested: 04:57 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2945 |
Introduced |
SB564 |
|
|---|
| 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 increase the amount of volunteer firefighters who can qualify for the volunteer firefighter tax credit.
According to our interpretation, this bill changes reduces the qualification for the credit for active volunteer firefighters from 30 percent of the volunteer fire department activities during the year to 10 percent. The volunteer firefighter tax credit was claimed on 1,607 tax returns in FY2025 for a total of $1.6 million. The number of eligible claimants beginning in Tax Year 2027 could increase substantially. If all eligible claimants took the credit, an additional decrease the State General Revenue could be up to $9.4 million in FY2028 and subsequent fiscal years. Although a taxpayer may be eligible, they may not have the tax liability to claim the full amount of the credit. Some volunteer firefighters may not qualify every year because they may not have a full year of service.
There would be administrative costs to the State Tax Department in FY2026 of $29,150. Personnel costs in subsequent years would be $11,000 to administer and review the tax credit.
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 |
29,150 |
11,000 |
11,000 |
| Personal Services |
11,000 |
11,000 |
11,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
1,650 |
0 |
0 |
| Other |
16,500 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-9,400,000 |
Explanation of above estimates (including long-range effect):
According to our interpretation, this bill changes reduces the qualification for the credit for active volunteer firefighters from 30 percent of the volunteer fire department activities during the year to 10 percent. The volunteer firefighter tax credit was claimed on 1,607 tax returns in FY2025 for a total of $1.6 million. The number of eligible claimants beginning in Tax Year 2027 could increase substantially. If all eligible claimants took the credit, an additional decrease the State General Revenue could be up to $9.4 million in FY2028 and subsequent fiscal years. Although a taxpayer may be eligible, they may not have the tax liability to claim the full amount of the credit. Some volunteer firefighters may not qualify every year because they may not have a full year of service.
There would be administrative costs to the State Tax Department in FY2026 of $29,150. Personnel costs in subsequent years would be $11,000 to administer and review the tax credit.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov