SB 169
Creating tax credit related to child care expenses
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill creates a state tax credit for West Virginia residents who claim childcare expenses on their federal tax returns. The amount of the credit is tiered based on the taxpayer’s adjusted gross income, with lower-income taxpayers receiving a higher percentage of the federal credit. The credit is phased out for taxpayers with higher incomes and is not available to those receiving childcare assistance from the Department of Health and Human Resources, unless the expenses are not already reimbursed.
Key provisions
- Establishes a state tax credit for childcare expenses.
- Credit amount is tiered based on federal adjusted gross income.
- Maximum credit of 50% for AGI under $30,000, 30% for $30,001 - $45,000, and 20% for $45,001 - $65,000.
- No credit is available for AGI of $65,000 or more.
- Credits not used to offset income taxes are refunded to the individual.
- Excludes residents receiving childcare assistance.
- Apportionment of credits for residents living in West Virginia for part of a tax year.
- Defines ‘federal childcare tax credit’ as IRS Form 2441, with a dependent child age limit of under 13.
Who is affected
- West Virginia residents
- Taxpayers
- Families with childcare expenses
- Individuals claiming the federal childcare tax credit
Notable changes
- Creates a state tax credit mirroring the federal childcare tax credit.
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yours