HB 2605
Increase the tax credit for employers providing child care for employees.
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill aims to increase the tax credit available to West Virginia employers who provide or sponsor child care for their employees. The credit covers a portion of the operational costs associated with the child care facility, with a specific focus on qualified child-care property. Employers can receive a credit for capital investments in this property and ongoing operating costs, subject to certain limitations and recapture rules.
Key provisions
- Increases the tax credit for employers providing child care for employees.
- Defines key terms such as ‘employer provided’ child care and ‘qualified child-care property’ (including property purchased after July 1, 2022).
- Allows a credit for capital investment in child-care property, with a rate of 20% per year over five years.
- Provides a separate credit for operating costs, equal to 50% of the cost of operation, less employee contributions.
- Establishes a recapture percentage for credits based on the time elapsed since the property was placed in service.
- Includes limitations on the total amount of credits that can be claimed, combining capital investment and operating cost credits.
- Allows carryover of unused credits for a limited time.
- Provides a transferrable credit option for non-profit corporations.
Who is affected
- Employers (including corporations and non-profit organizations)
- Employees of employers providing child care
- West Virginia State Tax Department
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