FISCAL NOTE
Date Requested: January 16, 2015 Time Requested: 11:17 AM |
Agency: |
Tax Department, State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1986 |
Introduced |
HB2165 |
|
CBD Subject: |
Tax |
---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of the bill is to create a tax credit for businesses with more than twenty-five employees that relocate to reclaimed mountaintop removal land. The bill provides that the credit lasts for ten years.
The revenue loss associated with this bill cannot be determined. The bill does not state what businesses would qualify for the credit or the amount of the credit.
Additional administrative costs would be $37,000 in the first year and $25,000 in subsequent years.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2015 Increase/Decrease (use"-") |
2016 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
37,000 |
25,000 |
Personal Services |
0 |
25,000 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
7,000 |
0 |
Other |
0 |
5,000 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The revenue loss associated with this bill cannot be determined. The bill does not state what businesses would qualify for the credit or the amount of the credit. If the business relocating was a business in the activity of manufacturing, information processing, warehousing, non-retail goods distribution, qualified research and development, the relocation of a corporate headquarters or destination-oriented recreation and tourism, they would already qualify for the Economic Opportunity Tax Credit.
Additional administrative costs would be $37,000 in the first year and $25,000 in subsequent years.
Memorandum
The stated purpose of the bill is to create a tax credit for businesses with more than twenty-five employees that relocate to reclaimed mountaintop removal land. The bill provides that the credit lasts for ten years.
The proposed bill lacks sufficient detail about the credit. It does not state the amount of the credit. It also is not limited to taxable income attributable to the business location that has relocated. A business with several locations may attempt to exempt all of its taxable income attributable to the location that has just relocated.
The proposed bill does not state when the credit may be taken nor does it contain carryforward or carryback provisions.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov