Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=sb225%20intr.htm&yr=2011&sesstype=RS&i=225
Timestamp: 2018-01-20 08:22:51
Document Index: 361013198

Matched Legal Cases: ['§5', '§5', '§5', '§5', '§5', '§5', '§5', '§5', '§5', '§5', '§5', '§31']

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §5E-3-1, §5E-3-2, §5E-3-3, §5E-3-4, §5E-3-5, §5E-3-6, §5E-3-7, §5E-3-8, §5E-3-9, §5E-3-10 and §5E-3-11; and to amend and reenact §31-15-6 of said code, all relating to the creation of an innovation and development program; providing a short title; declaration of policy; setting forth purposes; providing definitions; authorizing and directing the Economic Development Authority to propose rules to implement its provisions and provide for the effective and efficient administration of the program; authorizing the authority to provide technical and professional assistance to entrepreneurs in the state; authorizing the authority to make qualified investments and loans; authorizing recoverable revenue credits to private investors for investments in qualified investment companies pursuant to rules to be promulgated by the authority; authorizing tax credits to investors in qualified community development entities; creating a revolving fund to deposit all profits collected by the Economic Development Authority; and specifying disclosure, conflict of interest and confidentiality standards for the operation of the innovation and development program.
(2) "Authority" means the West Virginia Economic Development Authority established under article fifteen, chapter thirty-one of this code or any successor to all or any substantial part of its powers and duties.
(b) Each of the next four anniversary dates of such date.
(4) "Qualified community development entity" has the same meaning given such term in Section 45D of the Internal Revenue Code of 1986, as amended, so long as such entity has entered into, or is controlled by an entity that has entered into, an allocation agreement with the Community Development Financial Institutions Fund of the United State’s Treasury Department regarding credits authorized by Section 45D of the Internal Revenue Code of 1986, as amended.
(6) "Recoverable revenue credits" means credits awarded by the authority pursuant to section seven of this article and entitles the state to receive not less than forty percent of the profits allocable to the tax-advantage portions of the investment.
The authority shall propose rules for legislative approval in accordance with article three, chapter twenty-nine-a of this code to carry out the policy and purposes of this article, to provide any necessary clarification of the provisions of this article and to efficiently provide for the general administration of this article. The authority may propose additional rules for legislative approval in accordance with article three, chapter twenty-nine-a of this code that it considers necessary to provide for the efficient administration of the recoverable revenue credits awarded to qualified investment companies under this article. The authority shall propose rules in conjunction with the Department of Commerce to require persons receiving any money or recoverable tax credits pursuant to this article to submit information that is necessary to determine the effectiveness of this act and whether the act shall be continued. Beginning July 1, 2012, and on July 1 of each succeeding year, the authority shall report its findings obtained from such information to the Joint Committee on Government and Finance.
(b) From moneys appropriated for such purposes, the authority is authorized to make seed capital, venture capital and other equity investments in qualified investment companies operating in the state under rules proposed by the authority pursuant to provisions of section five of this article and the policies and procedures adopted by the authority to effectuate the purposes of this article.
(c) The authority is authorized to award a total of $1 million in each fiscal year to fulfill the purposes of this section. Funds disbursed or awarded under this section shall be awarded by a competitive selection and award process designed to further the purposes of this article under rules proposed by the authority pursuant to provisions of section five of this article and the policies and procedures adopted by the authority to effectuate the purposes of this article.
(d) Any investor, including an individual, partnership, limited liability company, corporation or other entity, who makes an investment in a qualified investment company authorized by the authority under this article, which is independently operated by qualified managers and is not directly or indirectly operated or managed by the investors, is entitled to a recoverable revenue credit equal to no more than fifty percent of the investor's investment in the qualified investment company. No investor may receive the recoverable revenue credit without the approval of the authority. The other terms and conditions of the credit shall be established by the authority pursuant to rules proposed by the authority under section five of this article and pursuant to policies and procedures adopted by the authority to effectuate the purposes of this article.
(f) The recoverable revenue credits allowed under this section are to be credited against the taxpayer's tax liability for the taxable year in which the investment is made. If the amount of the recoverable revenue credit exceeds the taxpayer's tax liability for the taxable year, the amount of the credit which exceeds the tax liability for the taxable year may be carried to succeeding taxable years until used in full or until forfeited. Recoverable revenue credits may not be carried forward more than fifteen years. Recoverable revenue credits may not be carried back to prior taxable years. Any recoverable revenue credit remaining after the fifteenth taxable year is forfeited.
(5) More than $500,000 but not more than $1 million; and
(a) Any investor, including an individual, partnership, limited liability company, corporation or other entity, who makes an investment in a qualified community development entity is entitled to a revenue credit equal to no more than thirty-nine percent of the purchase price of the investor's investment in the qualified investment community development entity. No investor receives the revenue credit without the approval of the authority. The tax credit may be utilized as follows:
(1) The holder of the investment in the qualified community development entity on a particular credit allowance date of such investment, whether it be the original purchaser or subsequent holder, may utilize a portion of the tax credit against its tax liability for the taxable year that includes such credit allowance date equal to the applicable percentage for such credit allowance date multiplied by the purchase price paid for such investment; and
(b) No tax credit claimed under this section may be sold or transferred. Tax credits that a partnership, limited liability company, S corporation or other “pass-through” entity claim may be allocated to the partners, members, or shareholders of such entity for their direct use in accordance with the provisions of any agreement among such partners members or shareholders.
(e) The total amount of tax credits that may be awarded by the authority pursuant to this section is limited to $2 million in each fiscal year.
(f) Credits authorized by this section shall be allocated pursuant to rules proposed by the authority under the provisions of section five of this article and pursuant to policies and procedures adopted by the authority to effectuate the purposes of this article.
(a) The authority shall deposit all profits collected from investors receiving recoverable revenue credits, pursuant to section seven of this article, into a special State Treasury Fund to be known as “The Innovation and Development Revolving Fund.” The revolving fund is a permanent and perpetual fund administered by the economic development authority on behalf of the development office. Expenditures from the fund shall be for the purposes set forth in this section and made in accordance with appropriations from the Legislature and pursuant to the provisions of article three, chapter twelve of this code and after the fulfillment of the provisions of article two, chapter eleven-b of this code: Provided, That for the fiscal year ending June 30, 2012, expenditures are authorized from collections and not Legislative appropriations.
(A) All profits collected from investors receiving recoverable revenue credits pursuant to section seven of this article; and