West Virginia lawmakers consider child care tax credit | News, sports, jobs

Photo by: W.Va. Legislative photography

Del. Amy Summers, R-Taylor, questions the effectiveness of a proposed child care tax credit during a House Finance Committee meeting Sunday.

CHARLESTON — After a six-day break to allow behind-the-scenes negotiations to continue over Gov. Jim Justice’s proposal to cut the income tax by 5%, a special session of the West Virginia Legislature convened Sunday with new bills and a look at child care Justice continued tax credit.

Lawmakers agreed Sunday evening after the judge called the Legislature into a special session last Monday to continue work on the remaining 22 bills he introduced into the special session last week. The court further amended the request Saturday, adding three additional funds for lawmakers to consider, including $10 million for the state Department of Agriculture for drought relief, $1 million for the Department of Education for school safety and $5 million -Dollars for a pilot program to expand child care the Department of Economic Development.

The Senate version of the child care expansion bill, Senate Bill 2029, passed the Senate on Sunday evening by a vote of 27-2. The School Building Authority bill, Senate Bill 2031, passed by a vote of 28-1. The drought funding bill, Senate Bill 2032, passed 29-0. The three Senate bills were sent to the House of Representatives for consideration.

The Justice Department also added a bill that would provide an appropriations item for the SBA for the $5 million already provided to the SBA to build public charter schools.

Lawmakers are already considering two bills, Senate Bill 2027/House Bill 227, that would give the SBA statutory authority to accept applications from public charter schools to seek funding from the SBA for new building purchases and project costs.

SB 2027 went to third reading in the Senate and HB 227 was recommended for passage by the House Education Committee last week.

The Senate also considered Senate Bill 2025, the judge’s proposal to cut income tax rates by an additional 5%, with the bill remaining in second reading. The tax cut would return about $115 million to taxpayers if fully implemented in fiscal year 2026, starting in July 2025.

The tax cut itself would take effect in early January next year, along with a 4% reduction in personal income taxes due to the fulfillment of a trigger and annual tax cut formula as part of the tax reform package passed by lawmakers in 2023. Combined with the 21.25% personal income tax cut that took effect in 2023 and the 4% cut, a 5% cut would lead the state to cuts of more than 30% in justice.

The House referred its version, House Bill 225, to the House Finance Committee for further consideration, although the bill was not on the Sunday afternoon agenda. House Finance Committee Chairman Vernon Criss, R-Wood, said negotiations between the governor and legislative leadership are continuing.

“It will be on the agenda, but … until I know for sure what’s going on, I can’t address what I don’t know,” Criss said.

Criss’ counterpart, Senate Finance Committee Chairman Eric Tarr, R-Putnam, expressed skepticism about whether the state can afford the future 5% income tax cut in future budgets. But Criss said he would support the 5% cut or any other cut the Legislature and governor can agree on.

Committee members considered three supplemental appropriations and House Bill 226, which would provide a non-refundable personal income tax credit equal to 50% of the allowable federal child and dependent care credit for those already receiving the federal tax credit retroactive to January 1 of the current year tax year.

If passed, the credit would return about $4.2 million to eligible taxpayers, according to a U.S. Treasury Department financial release for a similar bill that Justice proposed during the 2024 legislative session earlier this year. The maximum tax credit benefit for a family with a qualifying child could be nearly $1,500 per year. According to a recent Department of Human Services report, there are 1,391 licensed child care providers in the state with an average monthly cost of $672 per month per child.

However, some lawmakers questioned how effective the tax credit would be for needy families and whether there are enough available child care spots for families who want to take advantage of this new tax credit. According to a recent report from the West Virginia Chamber of Commerce, 24 counties have fewer than 250 licensed early childhood education slots, while 12 counties have fewer than 100 slots.

“We will provide people with a little money for childcare. However, we have a lot of demand and not enough places,” said Del. Amy Summers, R-Taylor. “Won’t this lead to an increase in the number of people who want to use it for the already reduced places? From an economic perspective, I don’t see any benefit from it.”

Committee members rejected a proposal from Del. John Williams, D-Monongalia, rejected proposed amendment to HB 225 that would have made it a refundable tax credit.

The committee recommended passage of House Bill 210, which provides $40 million for capital projects at rural hospitals. The Senate version of HB 210, Senate Bill 2010, passed the Senate 29-0 on Sunday evening.

The committee also recommended the following additional appropriations to the full body: House Bill 213, which provides $125 million for the Economic Development Grant Fund and $10 million for the West Virginia Jobs Investment Trust through the Department of Economic Development; and House Bill 220, which provides $13.6 million to the West Virginia School for Osteopathic Medicine for capital expenditures, repairs and equipment. The Senate version of HB 220, Senate Bill 2020, passed 29-0.

On Sunday, action was completed on House Bill 205, which provided more than $15.6 million to the West Virginia National Guard for capital improvements and its Recruit WV employment program.

The Senate passed the bill in 2017, which appropriates $300,000 for a proposed charter project for the upper rotunda of the state Capitol building. The proposed project calls for statues of West Virginia’s first governor, Arthur Boreman, and Presidents George Washington, Thomas Jefferson and Abraham Lincoln to be placed in the upper rotunda. The bill passed 28-1 and heads to the House next.

“(Capitol architect) Cass Gilbert had an original plan for statutes to be placed in the four (niches) out there,” Tarr said.

A statue of U.S. Senator Robert C. Byrd already stands in the upper rotunda. State Sen. Mike Caputo, D-Marion, expressed concerns about the proposed project and the possible removal of the Byrd statue.

“He has done a lot for West Virginia and is loved by many,” Caputo said. “If four come in up there, that means one of them has to go… I think it’s clear what’s going to happen here. Senator Byrd will be hiding in a corner somewhere. … I just think it’s wrong.”

The Senate also unanimously amended and unanimously passed Senate Bill 2021, an additional appropriation for the Department of Corrections and Rehabilitation; Senate Bill 2022, an additional appropriation to the Bureau of Juvenile Services; Senate Bill 2024, a supplemental appropriation for the Regional Jail and Correctional Facility Authority.

In a social media post on Sunday, Justice urged lawmakers to continue to fully consider his special session bills.

“The Legislature is back in special session today and I am confident we will get BIG things done,” Justice said. “I know you demand real progress: tax cuts, child care help, new jobs, safer schools and drought relief. Let’s sign bills and deliver what our state deserves: prosperity!”