West Virginia 2022 Regular Session Status: To Executive 4 R cosponsors

SB 656 — Providing tax credit for certain corporations with child-care facilities for employees

Last action — Chapter 272, Acts, Regular Session, 2022

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House of Delegates
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

12 added · 470 removed

Plain-language change summary

In the latest amendment to Bill SB 656, the title was updated to clarify that it aims to provide tax credits for businesses that help establish and operate child-care facilities for employees. This proposed change outlines specifics such as the credit's amount, rules for its application, limitations, and a process for non-profits to transfer these credits. By making these adjustments, the bill seeks to support working families and promote child care accessibility in the state, which can positively impact local economies.

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SB656 HFIN AM McO The Committee on Finance moves to amend the bill on page one, following the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof the following:
SB656 HFIN AMT McO The Committee on Finance moves to amend the title of the bill to read as follows:
ARTICLE 21.
Com.
PERSONAL INCOME TAX.
Sub.
§11-21-97.
for S.
Tax credit for employers providing child care for employees.
B.
(a)  Definitions -- As used in this section, the term:
656 -- “A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-21-97;
(1 ) “Commissioner” or “Tax Commissioner” are used interchangeably herein and mean the Tax Commissioner of the State of West Virginia, or his or her delegate;
and to amend said code by adding thereto a new section §11-24-44, all relating to providing a tax credit against the state corporate net income tax and the state personal income tax for expenditures related to the establishment and operation of employer-provided or sponsored child-care facilities;
(2) “Cost of operation” means reasonable direct operational costs incurred by an employer as a result of providing employer provided or employer sponsored child care facilities;
defining terms;
Provided, That the term cost of operation shall exclude the cost of any property that is qualified child care property.
providing for rulemaking;
(3) “Department” or “Tax Department” means the West Virginia State Tax Department.
setting the amount of the credit;
(4) “Employer” means any employer upon whom an income tax is imposed by this article.
providing for limitation of the credit;
(5) “Employer provided” refers to child care offered on the premises of the employer.
providing for transferrable credit available to non-profit corporations;
(6) “Premises of the employer” refers to any location within the State of West Virginia and located on the workplace premises of the employer providing the child care or one of the employers providing the child care in the event that the child care property is owned jointly or severally by the taxpayer and one or more unaffiliated employers;
and providing for a recapture process.”.
Provided, That if such workplace premises are impracticable or otherwise unsuitable for the on-site location of such child care facility, as determined by the commissioner, such facility may be located within a reasonable distance of the premises of the employer.
  ADOPTED REJECTED  
(7) “Qualified child care property” means all real property, other than land, and tangible personal property purchased or acquired on or after July 1, 2022, or which property is first placed in service on or after July 1, 2022, for use exclusively in the construction, expansion, improvement, or operation of an employer provided child care facility, but only if:
(A) The children who use the facility are primarily children of employees of:
(i) The taxpayer and other employers in the event that the child care property is owned jointly or severally by the taxpayer and one or more employers;
or (ii) A corporation that is a member of the taxpayer’s “affiliated group” within the meaning of section 1504(a) of the Internal Revenue Code;
and (B) The taxpayer has not previously claimed any tax credit for the cost of operation for such qualified child care property placed in service prior to taxable years beginning on or after January 1, 2022.
Qualified child care property includes, but is not limited to, amounts expended on building, improvements, and building improvements and furniture, fixtures, and equipment directly related to the operation of child care property as defined in this section.
(8) “Recapture amount” means, with respect to property as to which a recapture event has occurred, an amount equal to the applicable recapture percentage of the aggregate credits claimed under subsection (d) of this Section for all taxable years preceding the recapture year, whether or not such credits were used.
(9) “Recapture event” means any disposition of qualified child care property by the taxpayer, or any other event or circumstance under which property ceases to be qualified child care property with respect to the taxpayer, except for:
(A) Any transfer by reason of death;
(B) Any transfer between spouses or incident to divorce;
(C) Any transaction to which Section 381(a) of the Internal Revenue Code applies;
(D) Any change in the form of conducting the taxpayer's trade or business so long as the property is retained in such trade or business as qualified child care property and the taxpayer retains a substantial interest in such trade or business;
or (E) Any accident or casualty.
(10) “Recapture percentage” refers to the applicable percentage set forth in the following table:
               If the recapture event occurs within-The recapture percentage is:
               Five full years after the qualified child care property is                placed in service .......................................................100                The sixth full year after the qualified child care property is               placed in service ........................................................90                The seventh full year after the qualified child care property               is placed in service .....................................................80                The eighth full year after the qualified child care property is               placed in service ........................................................70                The ninth full year after the qualified child care property is               placed in service ........................................................60                The tenth full year after the qualified child care property is               placed in service ........................................................50                The eleventh full year after the qualified child care property               is placed in service .....................................................40                The twelfth full year after the qualified child care property               is placed in service .....................................................30                The thirteenth full year after the qualified child care               property is placed in service ............................................20                The fourteenth full year after the qualified child care               property is placed in service ............................................10                Any period after the close of the fourteenth full year after               the qualified child care property is placed in service ....................0 (11) “Recapture year” means the taxable year in which a recapture event occurs with respect to qualified child care property.
(b) Credit for Capital Investment in Child Care Property -- A taxpayer shall be allowed a credit against the tax imposed under this article for the taxable year in which the taxpayer first places in service qualified child care property and for each of the ensuing four taxable years following such taxable year.
The aggregate amount of the credit shall equal 50 percent of the cost of all qualified child care property purchased or acquired by the taxpayer and first placed in service during a taxable year, and such credit may be claimed at a rate of 20 percent per year over a period of five taxable years.  In the case of a qualified child care property jointly owned by two or more unaffiliated employers, each employer’s credit is limited to that employer’s respective investment in the qualified child care property.  (c)  Limitations on Capital Investment Credit -- The tax credit allowable under subsection (b) of this Section shall be subject to the following conditions and limitations:
(1) Any such credit claimed in any taxable year but not used in such taxable year may be carried forward for three years from the close of such taxable year.
The sale, merger, acquisition, or bankruptcy of any taxpayer shall not create new eligibility for the credit in any succeeding taxpayer;
(2) In no event shall the amount of any such tax credit allowed under subsection (b) of this section, when combined with any such tax credit allowed under subsection (e) of this section, including any carryover of such credits from a prior taxable year, exceed 100 percent of the taxpayer's income tax liability as determined without regard to any other credits;
and (3) For every year in which a taxpayer claims such credit, the taxpayer shall attach a schedule to the taxpayer's West Virginia income tax return setting forth the following information with respect to such tax credit:
(A) A description of the child care facility;
(B) The amount of qualified child care property acquired during the taxable year and the cost of such property;
(C) The amount of tax credit claimed for the taxable year;
(D) The amount of qualified child care property acquired in prior taxable years and the cost of such property;
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(E) Any tax credit utilized by the taxpayer in prior taxable years;
(F) The amount of tax credit carried over from prior years;
(G) The amount of tax credit utilized by the taxpayer in the current taxable year;
(H) The amount of tax credit to be carried forward to subsequent tax years;
and (I) A description of any recapture event occurring during the taxable year, a calculation of the resulting reduction in tax credits allowable for the recapture year and future taxable years, and a calculation of the resulting increase in tax for the recapture year.
(d)  Recapture of Credit -- If a recapture event occurs with respect to qualified child care property:
(1) The credit otherwise allowable under subsection (b) of this section with respect to such property for the recapture year and all subsequent taxable years shall be reduced by the applicable recapture percentage;
and (2) All credits previously claimed with respect to such property under subsection (b) of this Section shall be recaptured as follows:
(A) Any carryover attributable to such credits pursuant to subdivision (1) of subsection (c) of this section shall be reduced, but not below zero, by the recapture amount;
(B) The tax credit otherwise allowable pursuant to subsection (b) of this section for the recapture year, if any, as reduced pursuant to subdivision (1) of this subsection, shall be further reduced, but not below zero, by the excess of the recapture amount over the amount taken into account pursuant to paragraph (A) of this subdivision;
and (C) The tax imposed pursuant to this article for the recapture year shall be increased by the excess of the recapture amount over the amounts taken into account pursuant to paragraphs (A) and (B) of this subdivision, as applicable.
(e) Credit for Operating Costs -- In addition to the tax credit provided under subsection (b) of this Section, a tax credit against the tax imposed under this article shall be granted to an employer who provides or sponsors child care for employees.
The amount of the tax credit shall be equal to 50% percent of the cost of operation to the employer less any amounts paid for by employees during a taxable year.
(f) Limitations on Credit for Operating Costs -- The tax credit allowed under subsection (e) of this Section shall be subject to the following conditions and limitations:
(1)  Such credit shall when combined with the credit allowed under subsection (b) shall not exceed 100 percent of the amount of the taxpayer's income tax liability for the taxable year as determined without regard to any other credits;
(2) Any such credit claimed but not used in any taxable year may be carried forward for five years from the close of the taxable year in which the cost of operation was incurred;
and (3) The employer shall certify to the department the names of the employees, the name of the child care provider, and such other information as may be required by the department to ensure that credits are granted only to employers who provide or sponsor approved child care pursuant to this Section.
(g) Rules --The Tax Commissioner may promulgate such interpretive, legislative and procedural rules as the Commissioner deems to be useful or necessary to carry out the purpose of this section and to implement the intent of the Legislature.
The Tax Commissioner may promulgate emergency rules pursuant to the provisions of §29A-3-15 of this code.
ARTICLE 24.
CORPORATION NET INCOME TAX.
§11-24-44.
Tax credit for employers providing child care for employees.
(a)  Definitions -- As used in this section, the term:
(1) “Commissioner” or “Tax Commissioner” are used interchangeably herein and mean the Tax Commissioner of the State of West Virginia, or his or her delegate;
(2) “Cost of operation” means reasonable direct operational costs incurred by an employer as a result of providing employer provided or employer sponsored child care facilities;
provided, however, that the term cost of operation shall exclude the cost of any property that is qualified child care property.
(3) “Department” or “Tax Department” means the West Virginia State Tax Department.
(4) “Employer” means any employer upon whom an income tax is imposed by this article or any employer organized as a nonprofit corporation under Internal Revenue Code § 501(c)(3) or § 501(c)(6) that is exempt from the tax imposed by this article pursuant to §11-24-5.
(5) “Employer provided” refers to child care offered on the premises of the employer.
(6) “Premises of the employer” refers to any location within the State of West Virginia and located on the workplace premises of the employer providing the child care or one of the employers providing the child care in the event that the child care property is owned jointly or severally by the taxpayer and one or more unaffiliated employers;
provided, however, that if such workplace premises are impracticable or otherwise unsuitable for the on-site location of such child care facility, as determined by the commissioner, such facility may be located within a reasonable distance of the premises of the employer.
(7) “Qualified child care property” means all real property, other than land, and tangible personal property purchased or acquired on or after July 1, 2022, or which property is first placed in service on or after July 1, 2022, for use exclusively in the construction, expansion, improvement, or operation of an employer provided child care facility, but only if:
(A) The children who use the facility are primarily children of employees of:
(i) The taxpayer and other employers in the event that the child care property is owned jointly or severally by the taxpayer and one or more employers;
or (ii) A corporation that is a member of the taxpayer's "affiliated group" within the meaning of Section 1504(a) of the Internal Revenue Code;
and (B) The taxpayer has not previously claimed any tax credit for the cost of operation for such qualified child care property placed in service prior to taxable years beginning on or after January 1, 2022.
Qualified child care property includes, but is not limited to, amounts expended on building, improvements, and building improvements and furniture, fixtures, and equipment directly related to the operation of child care property as defined in this section.
(8) “Recapture amount” means, with respect to property as to which a recapture event has occurred, an amount equal to the applicable recapture percentage of the aggregate credits claimed under subsection (d) of this section for all taxable years preceding the recapture year, whether or not such credits were used.
(9) “Recapture event” refers to any disposition of qualified child care property by the taxpayer, or any other event or circumstance under which property ceases to be qualified child care property with respect to the taxpayer, except for:
(A) Any transfer by reason of death;
(B) Any transfer between spouses or incident to divorce;
(C) Any transaction to which Section 381(a) of the Internal Revenue Code applies;
(D) Any change in the form of conducting the taxpayer's trade or business so long as the property is retained in such trade or business as qualified child care property and the taxpayer retains a substantial interest in such trade or business;
or (E) Any accident or casualty.
(10) “Recapture percentage” refers to the applicable percentage set forth in the following table:
               If the recapture event occurs within-The recapture percentage is:
               Five full years after the qualified child care property is               placed in service .......................................................100                The sixth full year after the qualified child care property is               placed in service ........................................................90                The seventh full year after the qualified child care property               is placed in service .....................................................80                The eighth full year after the qualified child care property is               placed in service ........................................................70                The ninth full year after the qualified child care property is               placed in service ........................................................60                The tenth full year after the qualified child care property is               placed in service ........................................................50                The eleventh full year after the qualified child care property               is placed in service .....................................................40                The twelfth full year after the qualified child care property               is placed in service .....................................................30                The thirteenth full year after the qualified child care               property is placed in service ............................................20                The fourteenth full year after the qualified child care               property is placed in service ............................................10                Any period after the close of the fourteenth full year after               the qualified child care property is placed in service ....................0 (11) “Recapture year” means the taxable year in which a recapture event occurs with respect to qualified child care property.
(b) Credit for Capital Investment in Child Care Property -- A taxpayer shall be allowed a credit against the tax imposed under this article for the taxable year in which the taxpayer first places in service qualified child care property and for each of the ensuing four taxable years following such taxable year.
The aggregate amount of the credit shall equal 50 percent of the cost of all qualified child care property purchased or acquired by the taxpayer and first placed in service during a taxable year, and such credit may be claimed at a rate of 20 percent per year over a period of five taxable years.
In the case of a qualified child care property jointly owned by two or more unaffiliated employers, each employer’s credit is limited to that employer’s respective investment in the qualified child care property.
(c) Limitations on Capital Investment Credit -- The tax credit allowable under subsection (b) of this section shall be subject to the following conditions and limitations:
(1) Any such credit claimed in any taxable year but not used in such taxable year may be carried forward for three years from the close of such taxable year.
The sale, merger, acquisition, or bankruptcy of any taxpayer shall not create new eligibility for the credit in any succeeding taxpayer;
(2) In no event shall the amount of any such tax credit allowed under subsection (b) of this section, when combined with any such tax credit allowed under subsection (e) of this section, including any carryover of such credits from a prior taxable year, exceed 100 percent of the taxpayer's income tax liability as determined without regard to any other credits;
and (3) For every year in which a taxpayer claims such credit, the taxpayer shall attach a schedule to the taxpayer's West Virginia income tax return setting forth the following information with respect to such tax credit:
(A) A description of the child care facility;
(B) The amount of qualified child care property acquired during the taxable year and the cost of such property;
(C) The amount of tax credit claimed for the taxable year;
(D) The amount of qualified child care property acquired in prior taxable years and the cost of such property;
(E) Any tax credit utilized by the taxpayer in prior taxable years;
(F) The amount of tax credit carried over from prior years;
(G) The amount of tax credit utilized by the taxpayer in the current taxable year;
(H) The amount of tax credit to be carried forward to subsequent tax years;
and (I) A description of any recapture event occurring during the taxable year, a calculation of the resulting reduction in tax credits allowable for the recapture year and future taxable years, and a calculation of the resulting increase in tax for the recapture year.
(d)  Recapture of Credit -- If a recapture event occurs with respect to qualified child care property:
(1) The credit otherwise allowable under subsection (b) of this section with respect to such property for the recapture year and all subsequent taxable years shall be reduced by the applicable recapture percentage;
and (2) All credits previously claimed with respect to such property under subsection (b) of this Section shall be recaptured as follows:
(A) Any carryover attributable to such credits pursuant to subdivision (1) of subsection (c) of this section shall be reduced, but not below zero, by the recapture amount;
(B) The tax credit otherwise allowable pursuant to subsection (b) of this section for the recapture year, if any, as reduced pursuant to subdivision (1) of this subsection, shall be further reduced, but not below zero, by the excess of the recapture amount over the amount taken into account pursuant to paragraph (A) of this subdivision;
and (C) The tax imposed pursuant to this article for the recapture year shall be increased by the excess of the recapture amount over the amounts taken into account pursuant to paragraphs (A) and (B) of this subdivision, as applicable.
(e)  Credit for Operating Costs -- In addition to the tax credit provided under subsection (b) of this Section, a tax credit against the tax imposed under this article shall be granted to an employer who provides or sponsors child care for employees.
The amount of the tax credit shall be equal to 50 percent of the cost of operation to the employer less any amounts paid for by employees during a taxable year.
(f) Limitations on Credit for Operating Costs -- The tax credit allowed under subsection (e) of this Section shall be subject to the following conditions and limitations:
(1)  Such credit shall when combined with the credit allowed under subsection (b) shall not exceed 100 percent of the amount of the taxpayer's income tax liability for the taxable year as determined without regard to any other credits;
(2) Any such credit claimed but not used in any taxable year may be carried forward for five years from the close of the taxable year in which the cost of operation was incurred;
and (3) The employer shall certify to the department the names of the employees, the name of the child care provider, and such other information as may be required by the department to ensure that credits are granted only to employers who provide or sponsor approved child care pursuant to this Section.
(g) Transferrable Credit Available to Non-Profit Corporations – In the case of non-profit corporations organized under Internal Revenue Code §501(c)(3) or §501(c)(6), which are exempt from tax under this article pursuant to §11-24-5 of this code, a credit in the amount calculated under the provisions of this section shall be available as a transferrable credit that may be transferred, sold or assigned to any other taxpayer to be applied against the tax owed under this article.  Pursuant to rules promulgated by the Tax Department, a non-profit corporation applicant shall provide a schedule to the Tax Department with all information required under §11-24-44(c)(3) of this code.  The Tax Department shall within days certify the amount of transferrable credit available to be transferred, sold or assigned to another taxpayer.  Any transferee, purchaser, or assignee of non-profit corporation credits certified to a non-profit corporation under this section takes the transferred, purchased, or assigned credits subject to any limitations placed on the amount of credit taken in a given year by §11-24-44(b), §11-24-44(c), §11-24-44(e) and §11-24-44(f) of this code.
(h) Rules --The Tax Commissioner may promulgate such interpretive, legislative and procedural rules as the Commissioner deems to be useful or necessary to carry out the purpose of this section and to implement the intent of the Legislature.
The Tax Commissioner may promulgate emergency rules pursuant to the provisions of §29A-3-15 of this code.
ADOPTED REJECTED
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Action History

  1. Chapter 272, Acts, Regular Session, 2022

  2. Approved by Governor 3/30/2022

  3. To Governor 3/18/2022

  4. Approved by Governor 3/30/22 - House Journal

  5. Approved by Governor 3/30/2022 - Senate Journal

  6. To Governor 3/18/22 - House Journal

  7. To Governor 3/18/2022 - Senate Journal

  8. Completed legislative action

  9. Communicated to House

  10. Senate concurred in House amendments and passed bill (Roll No. 537)

  11. House Message received

  12. Communicated to Senate

  13. Title amendment adopted (Voice vote)

  14. Passed House (Roll No. 642)

  15. Read 3rd time

  16. Committee amendment adopted (Voice vote)

  17. Amendment reported by the Clerk

  18. On 3rd reading with right to amend, Special Calendar

  19. Amendment pending

  20. Read 2nd time

  21. On 2nd reading, Special Calendar

  22. Placed on Special Calender

  23. On 2nd reading, House Calendar

  24. Placed on House Calendar

  25. On 2nd reading, Special Calendar

  26. Read 1st time

  27. Immediate consideration

  28. With amendment, do pass

  29. To House Finance

  30. To Finance

  31. Introduced in House

  32. Ordered to House

  33. Effective July 1, 2022 (Roll No. 272)

  34. Passed Senate (Roll No. 272)

  35. Read 3rd time

  36. Constitutional Rule Suspended (Roll No. 271)

  37. Read 2nd time

  38. On 2nd reading

  39. Read 1st time

  40. On 1st reading

  41. Committee substitute reported

  42. To Finance

  43. Introduced in Senate

  44. To Finance

  45. Filed for introduction

Sponsors

  • Ryan Weld · Cosponsor
  • Plymale · Cosponsor
  • Baldwin · Cosponsor
  • Lindsay · Cosponsor
  • Jeffries · Cosponsor
  • Jack Woodrum · Cosponsor
  • Trump · Cosponsor
  • Sypolt · Cosponsor
  • Swope · Cosponsor
  • Stollings · Cosponsor
  • Phillips · Cosponsor
  • Nelson · Cosponsor
  • Bill Hamilton · Cosponsor
  • Boley · Cosponsor
  • Tom Takubo · Primary

Sponsorship breakdown

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1 sponsors · 14 co-sponsors · 137 not signed on · 1 voted No

Sponsors (1)

Co-sponsors (14)

Not signed on (137)

137 members have not signed on to this bill.

Show all 137 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passage

Passed 30 Yea · 2 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 9100
Unaffiliated 21101
Democrat 0001
Total 30202
% of votes cast 88%6%0%6%
How each member voted (34)
Member Party Vote
LINDSAY — Yea
STOLLINGS — Yea
BALDWIN — Yea
MARONEY — Yea
STOVER — Not Voting
BEACH — Yea
MARTIN — Nay
SWOPE — Yea
BOLEY — Yea
MAYNARD — Yea
SYPOLT — Yea
BROWN — Yea
NELSON — Yea
CAPUTO — Yea
PHILLIPS — Yea
PLYMALE — Yea
TRUMP — Yea
GEFFERT — Yea
ROMANO — Yea
JEFFRIES — Yea
SMITH — Yea
MR PRESIDENT — Yea
KARNES — Yea
Mike Woelfel Democrat Not Voting
Amy Grady Republican Yea
Bill Hamilton Republican Yea
Charles H. Clements Republican Yea
Eric Tarr Republican Yea
Jack Woodrum Republican Yea
Mike Azinger Republican Nay
Patricia Rucker Republican Yea
Rollan A. Roberts Republican Yea
Ryan Weld Republican Yea
Tom Takubo Republican Yea

Official roll call →

Subjects

taxation labor
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Frequently asked questions

Who sponsors SB 656?
SB 656 is sponsored by Ryan Weld (Republican), Plymale, Baldwin, Lindsay, Jeffries, Jack Woodrum (Republican), Trump, Sypolt, Swope, Stollings, Phillips, Nelson, Bill Hamilton (Republican), Boley, and Tom Takubo (Republican).
What is the current status of SB 656?
This bill died with 2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 656?
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