FISCAL NOTE
Date Requested: January 11, 2023
Time Requested: 09:50 PM |
| Agency: |
Tax & Revenue Department, WV State |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1746 |
Introduced |
HB2351 |
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|---|
| CBD Subject: |
|
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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 offer tax credit against either personal or corporate income taxes for hiring women or minorities into executive, administrative, or professional jobs.
According to our interpretation of this bill, a tax credit of $200 against Personal Income Tax or Corporation Net Income Tax would be granted to the business owners that hire female or minority employees or who promotes an existing woman or minority employee into an executive, administrative, or professional position in the business per the United States Fair Labor Standards Act. The female or minority employee would have to retain an executive, administrative or professional position in the business for at least 12 months. This proposed tax credit can be applied to Corporation Net Income Tax and Personal Income Tax owed by the business over a two-year period following the period in which it was earned. This proposed credit would begin on July 1, 2023, and end on December 31, 2028. The Commissioner of Labor would certify a completed tax credit application from a business owner or executive and would issue certification acceptable to the State Tax Commissioner.
According to the US Census Bureau in 2022, 50.1 percent of the West Virginia population comprised of women, 3.7 percent of the population was African American, 2.0 percent were mixed
ethnicity, 1.9 percent comprised of Hispanics and 0.9 percent were classified as Asian. Based on these percentages, roughly 160,000 people in West Virginia are classified as minorities and 890,000 people in the State are women. It would be difficult to estimate the number of West Virginia business owners who hire female or minority employees or who promote an existing woman or minority employee into an executive, administrative, or professional position. Further, many states who have women and minority job incentives do not have stand-alone credits, but rather incorporate these special incentives into existing business tax credits. We cannot determine the loss to the General Revenue Fund in FY2024 and thereafter.
Additional administrative costs incurred by the State Tax Department are $51,500 in FY2024 and $40,000 per year in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
51,500 |
40,000 |
| Personal Services |
0 |
40,000 |
40,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,500 |
0 |
| Other |
0 |
10,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
According to our interpretation of this bill, a tax credit of $200 against Personal Income Tax or Corporation Net Income Tax would be granted to the business owners that hire female or minority employees or who promotes an existing woman or minority employee into an executive, administrative, or professional position in the business per the United States Fair Labor Standards Act. The female or minority employee would have to retain an executive, administrative or professional position in the business for at least 12 months. This proposed tax credit can be applied to Corporation Net Income Tax and Personal Income Tax owed by the business over a two-year period following the period in which it was earned. This proposed credit would begin on July 1, 2023, and end on December 31, 2028. The Commissioner of Labor would certify a completed tax credit application from a business owner or executive and would issue certification acceptable to the State Tax Commissioner.
According to the US Census Bureau in 2022, 50.1 percent of the West Virginia population comprised of women, 3.7 percent of the population was African American, 2.0 percent were mixed
ethnicity, 1.9 percent comprised of Hispanics and 0.9 percent were classified as Asian. Based on these percentages, roughly 160,000 people in West Virginia are classified as minorities and 890,000 people in the State are women. It would be difficult to estimate the number of West Virginia business owners who hire female or minority employees or who promote an existing woman or minority employee into an executive, administrative, or professional position. Further, many states who have women and minority job incentives do not have stand-alone credits, but rather incorporate these special incentives into existing business tax credits. We cannot determine the loss to the General Revenue Fund in FY2024 and thereafter.
Additional administrative costs incurred by the State Tax Department are $51,500 in FY2024 and $40,000 per year in subsequent fiscal years.
Memorandum
The stated purpose of this bill is to offer tax credit against either personal or corporate income taxes for hiring women or minorities into executive, administrative, or professional jobs.
This bill does not define the term “minority”, either directly or by reference to any other statutory or regulatory definition.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov