FISCAL NOTE
Date Requested: February 25, 2021
Time Requested: 01:27 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2946 |
Introduced |
SB447 |
|
|---|
| 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 amend the economic opportunity tax credit and the high technology manufacturing tax credit to provide more targeted and effective tax incentives for economic development.
According to our interpretation of this bill, the Economic Opportunity Tax Credit (EOTC) is amended to add a tier for 10 percent for at least 10 new jobs created on or after January 1, 2022 in lieu of the more restrictive small business credit application. In addition, the bill expands the definition of high technology manufacturing businesses for tax years beginning on January 1, 2022 to include manufacturing of drones, autonomous motor vehicles, manufacturing robots, robotic medical machines, manufacturing related to artificial intelligences, biotechnology products, and the manufacturing of medical devices. Qualified investment related to the proposed tax credit cannot be used to claim other credits.
There would be no net revenue loss associated with the proposed changes.
Additional administrative costs incurred by the State Tax Department would be $5,000 in FY2022.
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 |
5,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
5,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation of this bill, the Economic Opportunity Tax Credit (EOTC) is amended to add a tier for 10 percent for at least 10 new jobs created on or after January 1, 2022 in lieu of the more restrictive small business credit application. In addition, the bill expands the definition of high technology manufacturing businesses for tax years beginning on January 1, 2022 to include manufacturing of drones, autonomous motor vehicles, manufacturing robots, robotic medical machines, manufacturing related to artificial intelligences, biotechnology products, and the manufacturing of medical devices. Qualified investment related to the proposed tax credit cannot be used to claim other credits.
There would be no net revenue loss associated with the proposed changes.
Additional administrative costs incurred by the State Tax Department would be $5,000 in FY2023.
Memorandum
The stated purpose of this bill is to amend the economic opportunity tax credit and the high technology manufacturing tax credit to provide more targeted and effective tax incentives for economic development.
The proposed bill deviates from the true language of the existing State code, without providing strike-throughs or underlining.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov