This bill proposes significant amendments to the West Virginia Code, specifically targeting sections 11-21-97 and 11-24-44, with the primary goal of enhancing tax credits for employers who provide child care for their employees. Notably, the tax credit for capital investment in qualified child-care property is increased from 50 percent to 100 percent of the costs incurred by the employer. This credit can be claimed for the taxable year in which the property is first placed in service and for the subsequent four years, with a gradual reduction in the credit percentage over time. Similarly, the tax credit for operating costs associated with providing child care is also raised from 50 percent to 100 percent, thereby incentivizing employers to invest more in child care facilities.

In addition to the increased tax credits, the bill establishes specific definitions related to the credits, such as "qualified child-care property" and "recapture amount," and outlines the conditions under which these credits can be claimed. Employers are required to provide detailed information about the child-care facilities and associated costs, and the bill allows for the carryover of unused credits for five years. Furthermore, it introduces provisions for non-profit corporations to transfer, sell, or assign their tax credits to other taxpayers, with the Tax Department responsible for certifying the amount of transferable credit within 90 days of application. Overall, the legislation aims to bolster child care support for working families in West Virginia by providing substantial financial incentives for employers.

Statutes affected:
Introduced Version: 11-21-97, 11-24-44