FISCAL NOTE
Date Requested: February 15, 2021
Time Requested: 01:32 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2067 |
Introduced |
HB2533 |
|
|---|
| CBD Subject: |
|
|---|
|
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 provide a tax credit for obtaining certain certifications by the United States Green Building Council Leadership in Energy and Environmental green building rating system or the Green Building Initiative green building rating standard. The bill sets forth the amount of the credit, who may take the credit, the criteria for taking the credit and the amount of the credit. The bill also provides rulemaking authority and defines terms.
According to the provisions of this bill, the amount of the tax credit available to any eligible taxpayer is equal to 100% of its cost in making renovations and improvements to its building to become certified by the United States Green Building Council Leadership in Energy and Environmental Design Green Building Rating System or the Green Globes Building Initiative Green Building Rating Standard, less any reimbursement of the cost which the taxpayer has received through any other means. The tax credit would be allowed against the Corporation Net Income Tax, Business Franchise Tax and Personal Income Tax liabilities. The Business Franchise Tax terminated on January 1, 2015. Maryland had a similar tax credit preference related to green buildings from July 1, 2012 through June 30, 2016 against both their Personal and Corporation Net Income Taxes. The costs of their credit averaged $0.7 million per year in FY2015 and FY2016 as the Maryland credit amount was only up to 8% of the allowable costs of the qualified taxpayer’s green building investment. New York also has a similar credit preference for green buildings capped at $50.0 million as opposed to 8% cost in Maryland. We cannot estimate the revenue impact of this bill because we do not know how many eligible taxpayers would qualify for this credit. However, the fiscal impact could be significant because the State could be responsible for 100% of the cost.
Additional administrative costs incurred by the State Tax Department would be $30,000 in FY2022 and $10,000 in FY2023 and subsequent fiscal years.
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 |
30,000 |
10,000 |
| Personal Services |
0 |
10,000 |
10,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
20,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to the provisions of this bill, the amount of the tax credit available to any eligible taxpayer is equal to 100% of its cost in making renovations and improvements to its building to become certified by the United States Green Building Council Leadership in Energy and Environmental Design Green Building Rating System or the Green Globes Building Initiative Green Building Rating Standard, less any reimbursement of the cost which the taxpayer has received through any other means. The tax credit would be allowed against the Corporation Net Income Tax, Business Franchise Tax and Personal Income Tax liabilities. The Business Franchise Tax terminated on January 1, 2015. Maryland had a similar tax credit preference related to green buildings from July 1, 2012 through June 30, 2016 against both their Personal and Corporation Net Income Taxes. The costs of their credit averaged $0.7 million per year in FY2015 and FY2016 as the Maryland credit amount was only up to 8% of the allowable costs of the qualified taxpayer’s green building investment. New York also has a similar credit preference for green buildings capped at $50.0 million as opposed to 8% cost in Maryland. We cannot estimate the revenue impact of this bill because we do not know how many eligible taxpayers would qualify for this credit. However, the fiscal impact could be significant because the State could be responsible for 100% of the cost.
Additional administrative costs incurred by the State Tax Department would be $30,000 in FY2022 and $10,000 in FY2023 and subsequent fiscal years.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov