Source: http://www.legis.state.wv.us/WVCODE/code.cfm?chap=11&art=13C&section=7
Timestamp: 2015-07-01 06:39:50
Document Index: 76799929

Matched Legal Cases: ['§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§101', '§11', '§11']

Chapter 11 | Article 11 - 13C
11 - 13 C- 1 11 - 13 C- 2 11 - 13 C- 3 11 - 13 C- 4 11 - 13 C- 4 A 11 - 13 C- 4 B 11 - 13 C- 5 11 - 13 C- 6 11 - 13 C- 7 11 - 13 C- 7 A 11 - 13 C- 8 11 - 13 C- 8 A 11 - 13 C- 9 11 - 13 C- 10 11 - 13 C- 11 11 - 13 C- 12 11 - 13 C- 13 11 - 13 C- 14 11 - 13 C- 15 11 - 13 C- 16 13CC - ENERGY INTENSIVE INDUSTRIAL
WVC 11 - 13 C- ARTICLE 13C. BUSINESS INVESTMENT AND JOBS EXPANSION TAX CREDIT.
WVC 11 - 13 C- 1 §11-13C-1. Short title. This article may be cited as the "West Virginia Business
Investment and Jobs Expansion Tax Credit Act."
WVC 11 - 13 C- 2 §11-13C-2. Legislative finding and purpose. The Legislature finds that the encouragement of economic
growth and development in this state is in the public interest and
promotes the general welfare of the people of this state. In order
to encourage capital investment in businesses in this state and
hereby provided a business investment and jobs expansion tax
WVC 11 - 13 C- 3 §11-13C-3. Definitions.
(a) General. -- When used in this article, or in the
administration of this article, terms defined in subsection (b)
shall have the meanings ascribed to them by this section, unless a
different meaning is clearly required by either the context in
which the term is used, or by specific definition, in this article.
(1) Business. -- The term "business" means any activity
taxable under article twelve-a or thirteen (or both) of this
chapter, which is engaged in by any person in this state: Provided, That on and after the first day of July, one thousand
twelve-a or thirteen, (or both) of this chapter" shall mean "taxes
imposed by article thirteen, thirteen-a, thirteen-b twenty-one,
twenty-three and twenty-four of this chapter (or any one or
combination of such articles of this chapter)."
(2) Business expansion. -- The term "business expansion" means
capital investment in a new or expanded business facility in this
(3) Business facility. -- The term "business facility" means
any factory, mining operation, mill, plant, refinery, warehouse,
building or complex of buildings located within this state,
including the land on which it is located, and all machinery,
equipment and other real and personal property located at or within
such facility, used in connection with the operation of suchfacility, in a business that is taxable in this state, and all site
preparation and start-up costs of the taxpayer for the business
facility which it capitalizes for federal income tax purposes.
(A) "Mining operation" means the place at which a person
extracts ores or minerals from the ground. It includes both
surface and underground mining operations.
(B) "Surface mine" means the surface of land upon which
activities are conducted which disturb the natural surface of the
land and result in the production of ores or minerals.
(C) "Underground mine" means the surface effects associated
with the shafts, slopes, lifts or inclines connected with
excavations penetrating seams or strata of minerals, and the
equipment connected therewith which contribute to the mining,
preparation or handling of ores or minerals.
(4) Commissioner or tax commissioner. -- The terms
"commissioner" and "tax commissioner" are used interchangeably
herein and mean the tax commissioner of the state of West Virginia,
(5) Compensation. -- The term "compensation" means wages,
salaries, commissions and any other form of remuneration paid to
(6) Controlled group. -- The term "controlled group" means one
or more chains of corporations connected through stock ownership
with a common parent corporation if stock possessing at least fifty
percent of the voting power of all classes of stock of each of thecorporations is owned directly or indirectly by one or more of the
corporations; and the common parent owns directly stock possessing
at least fifty percent of the voting power of all classes of stock
of at least one of the other corporations.
(7) Corporation. -- The term "corporation" means any
corporation, joint-stock company or association, and any business
(8) Delegate. -- The term "delegate" in the phrase "or his
delegate," when used in reference to the tax commissioner, means
any officer or employee of the state tax department duly authorized
by the tax commissioner directly, or indirectly by one or more
redelegations of authority, to perform the functions mentioned or
(9) Eligible taxpayer. -- The term "eligible taxpayer" means
any person subject to the taxes imposed by article twelve-a or
thirteen (or both) of this chapter who makes qualified investment
in a new or expanded business facility located in this state that
results in the creation of at least fifty new jobs: Provided, That
eighty-seven, the phrase "taxes imposed by article twelve-a or
thirteen, (or both) of this chapter" shall mean "taxes imposed by
articles thirteen, thirteen-a, thirteen-b twenty-one, twenty-three
and twenty-four of this chapter (or any one or combination of sucharticles of this chapter). "Eligible taxpayer" shall also include
an affiliated group of taxpayers if such group elects to file a
consolidated corporation net income tax return under article
twenty-four of this chapter.
(10) Expanded facility. -- The term "expanded facility" means
any business facility (other than a new or replacement business
facility) resulting from the acquisition, construction,
reconstruction, installation or erection of improvements or
additions to existing property if such improvements or additions
are purchased on or after the first day of March, one thousand nine
hundred eighty-five, but only to the extent of the taxpayer's
qualified investment in such improvements or additions.
(11) Includes and including. -- The terms "includes" and
"including," when used in a definition contained in this article,
shall not be deemed to exclude other things otherwise within the
(12) New business facility. -- The term "new business
facility" means a business facility which satisfies all the
requirements of subparagraphs (A), (B), (C) and (D) of this
(A) The facility is employed by the taxpayer in the conduct of
a business the net income of which is taxable under article twenty-one or twenty-four of this chapter. Such facility shall not be
considered a new business facility in the hands of the taxpayer if
the taxpayer's only activity with respect to such facility is tolease it to another person or persons.
(B) Such facility is purchased by, or leased to, the taxpayer
and is placed in service or use on or after the first day of March,
one thousand nine hundred eighty-five.
(C) The facility was not acquired by the taxpayer from a
related person. The tax commissioner can waive this requirement if
the facility was acquired from a related party for its fair market
(D) Such facility was not in service or use during the ninety
days immediately prior to transfer of the title to such facility,
or to the commencement of the term of the lease of such facility,
unless upon application of the taxpayer, setting forth good and
sufficient cause, the tax commissioner consents to waiving this
ninety-day period.
(13) New employee. -- The term "new employee" means a person
residing and domiciled in this state, hired by the taxpayer to fill
a position for a job in this state, which previously did not exist
in the business enterprise in this state, prior to the date on
which the taxpayer's qualified investment is placed in service or
use in this state. In no case shall the new employees allowed for
purposes of this credit exceed the total increase in the taxpayer's
employment in this state. A person shall be deemed to be a "new
employee" if such person's duties in connection with the operation
of the business enterprise are on:
(1) "Full-time employment" means employment for at least one
hundred twenty hours per month at a wage not less than the
prevailing state or federal minimum wage, depending on which
minimum wage provision is applicable to the business.
(2) "Permanent employment" does not include employment that is
temporary or seasonal.
(B) A part-time basis, provided such person is customarily
performing such duties at least twenty hours per week for at least
six months during the taxable year.
(14) New job. -- The term "new job" means a job which did not
exist in the business of the taxpayer in this state prior to the
taxpayer's qualified investment being made, and which is filled by
(A) Property the construction, reconstruction or erection of
which is completed on or after March one, one thousand nine hundred
eighty-five, and placed in service or use after such date; and
(B) Property leased or acquired by the taxpayer that is placed
in service or use in this state on or after the first day of March,
one thousand nine hundred eighty-five, if the original use of such
property commences with the taxpayer and commences after such date.
(16) Original use. -- The term "original use" means the first
use to which the property is put, whether or not such use
corresponds to the use of the property by the taxpayer.
(17) Partnership and partner. -- The term "partnership"includes a syndicate, group, pool, joint venture or other
unincorporated organization through or by means of which any
business, financial operation or venture is carried on, and which
is not a trust or estate, a corporation or a sole proprietorship.
The term "partner" includes a member in such a syndicate, group,
pool, joint venture or organization.
(18) Person. -- The term "person" includes any natural person,
(A) Included property. -- Except as provided in subparagraph
(B), the term "property purchased or leased for business expansion"
means real property and improvements thereto, and tangible personal
property, but only if such real or personal property was
constructed, purchased, or leased and placed in service or use by
the taxpayer, for use as a component part of a new or expanded
business facility, as defined in this section, which is located
within West Virginia. This term includes only:
(1) Real property and improvements thereto having a useful
life of four or more years, placed in service or use on or after
the first day of March, one thousand nine hundred eighty-five, by
(2) Real property and improvements thereto, or tangible
personal property acquired by written lease having a primary term
of ten or more years and placed in service or use by the taxpayer
on or after the first day of March, one thousand nine hundredeighty-five.
(3) Tangible personal property placed in service or use by the
taxpayer on or after the first day of March, one thousand nine
hundred eighty-five, with respect to which depreciation, or
amortization in lieu of depreciation, is allowable in determining
the personal or corporation net income tax liability of the
business taxpayer under article twenty-one or twenty-four of this
chapter, and which has a useful life at the time such property is
placed in service or use in this state, of four or more years.
(4) Tangible personal property acquired by written lease
having a primary term of four years or longer, that commenced and
was executed by the parties thereto on or after the first day of
February, one thousand nine hundred eighty-six, if used as a
component part of a new or expanded business facility, shall be
(5) Tangible personal property owned or leased, and used by
the taxpayer at a business location outside this state which is
moved into this state on or after the first day of February, one
thousand nine hundred eighty-six, for use as a component part of a
new or expanded business facility located in this state: Provided,
That if the property is owned, it must be depreciable or
amortizable personal property for income tax purposes, and have a
useful life of four or more years remaining at the time it is
placed in service or use in this state, and if the property is
leased, the primary term of the lease remaining at the time theleased property is placed in service or use in this state, must be
four or more years:
(B) Excluded property. -- The term "property purchased or
leased for business expansion" shall not include:
(1) Property owned or leased by the taxpayer and for which
credit was taken under article thirteen-c of this chapter prior to
its repeal, on the thirteenth day of April, one thousand nine
hundred eighty-five, or under article thirteen-d or thirteen-e of
(2) Repair costs, including materials used in the repair,
(3) Motor vehicles licensed by the department of motor
vehicles: Provided, That such property, if purchased or leased on
or after the first day of February, one thousand nine hundred
eighty-six, shall not be excluded by virtue of this clause (3);
(5) Off-premise transportation equipment: Provided, That such
property, if purchased or leased on or after the first day of
February, one thousand nine hundred eighty-six, shall not be
excluded by virtue of this clause (5);
(7) Property which is acquired incident to the purchase of the
stock or assets of the seller, unless for good cause shown, the tax
commissioner consents to waiving this requirement.
(C) Purchase date. -- Property shall be deemed to have been
purchased prior to a specified date only if:
(1) The physical construction, reconstruction or erection of
purchase prior to the specified date;
(2) The machinery or equipment was owned by the taxpayer prior
a binding purchase contract which was in effect prior to the
(3) In the case of leased property, there was a binding
(20) Purchase. -- The term "purchase" means any acquisition of
property, but only if:
(A) The property is not acquired from a person whose
disallowance of deductions under Section 267 or 707 (b) of the
United States Internal Revenue Code of 1954, as amended, and in
(B) The property is not acquired by one component member of a
controlled group from another component member of the same
controlled group. The tax commissioner can waive this requirementif the property was acquired from a related party for its then fair
(C) The basis of the property for federal income tax purposes,
(1) In whole or in part by reference to the federal adjusted
(2) Under Section 1014 (e) of the United States Internal
Revenue Code of 1954, as amended, and in effect on the first day of
January, one thousand nine hundred eighty-five.
(21) Qualified activity. -- The term "qualified activity"
means any business or other activity subject to the tax imposed by
article twelve-a or thirteen (or both) of this chapter: Provided,
That on and after the first day of July, one thousand nine hundred
thirteen (or both) of this chapter" shall mean "taxes imposed by
articles thirteen, thirteen-a, thirteen-b, twenty-one, twenty-three
and twenty-four of this chapter (or any one or combination of such
articles of this chapter)."
(A) A corporation, partnership, association or trust
controlled by the taxpayer;
(B) An individual, corporation, partnership, association or
trust that is in control of the taxpayer;
(C) A corporation, partnership, association or trustcontrolled by an individual, corporation, partnership, association
or trust that is in control of the taxpayer; or
For purposes of subdivisions (20) and (22) of this section,
"control," with respect to a corporation, means ownership, directly
or indirectly, of stock possessing fifty percent or more of the
total combined voting power of all classes of the stock of such
corporation entitled to vote. "Control," with respect to a trust,
means ownership, directly or indirectly, of fifty percent or more
of the beneficial interest in the principal or income of such
trust. The ownership of stock in a corporation, of a capital or
profits interest in a partnership or association or of a beneficial
interest in a trust shall be determined in accordance with the
rules for constructive ownership of stock provided in Section 267
(c) of the United States Internal Revenue Code of 1954, as amended,
other than paragraph (3) of such section.
(23) Replacement facility. -- The term "replacement facility"
means any property (other than an expanded facility) that replaces
or supersedes any other property located within this state that:
(A) The taxpayer or a related person used in or in connection
with any activity for more than two years during the period of five
consecutive years ending on the date the replacement or superseding
property is placed in service by the taxpayer; or
(B) Is not used by the taxpayer or a related person in or in
connection with any qualified activity for a continuous period ofone year or more commencing with the date the replacement or
superseding property is placed in service by the taxpayer.
(24) Taxpayer. -- The term "taxpayer" means any person subject
to the tax imposed by article twelve-a or thirteen (or both) of
this chapter: Provided, That on and after the first day of July,
one thousand nine hundred eighty-seven, the phrase "taxes imposed
by article twelve-a or thirteen (or both) of this chapter" shall
mean "taxes imposed by articles thirteen, thirteen-a, thirteen-b,
twenty-one, twenty-three and twenty-four of this chapter (or any
one or combination of such articles of this chapter)."
(25) This code. -- The term "this code" means the code of West
Virginia, one thousand nine hundred thirty-one, as amended.
(26) This state. -- The term "this state" means the state of
(27) Used property. -- The term "used property" means property
acquired after the twenty-eighth day of February, one thousand nine
hundred eighty-five, that is not "new property."
WVC 11 - 13 C- 4 §11-13C-4. Amount of credit allowed.
credit against the portion of taxes imposed by this state that are
attributable to and the consequence of the taxpayer's qualified
investment in a new or expanded business in this state, which
results in the creation of new jobs. The amount of this credit
shall be determined and applied as hereinafter provided in this
determined by multiplying the amount of the taxpayer's "qualified
investment" (determined under section four-a or six, or both) in
"property purchased for business expansion" (as defined in section
three) by the taxpayer's new jobs percentage (determined under
section seven). The product of this calculation establishes the
maximum amount of credit allowable under this article, due to the
(c) Application of credit over ten years. -- The amount of
credit allowable must be taken over a ten-year period, at the rate
of one tenth of the amount thereof per taxable year, beginning with
the taxable year in which the taxpayer places the qualified
investment in service or use in this state, unless the taxpayer
elected to delay the beginning of the ten-year period until the
next succeeding taxable year. This election shall be made in the
annual income tax return filed for the taxable year in which credit
is first taken on the qualified investment placed into service oruse by the taxpayer. Once made, the election cannot be revoked. The annual credit allowance shall be taken in the manner prescribed in section four of this article.
(d) Placed in service or use. -- For purposes of the credit
allowed by this section, property shall be considered placed in
service or use in the earlier of the following taxable years:
WVC 11 - 13 C- 4 A
(a) Credit allowed. -- A corporation that presently has its
corporate headquarters located outside this state that relocates
its corporate headquarters in this state and employs, on a
full-time basis, at its new corporate headquarters location, at
least fifteen people, who are domiciled in this state, shall be
allowed credit under this article, the amount of which shall be
determined as provided in subsection (b). For corporate
headquarters relocations occurring on and after the first day of
January, one thousand nine hundred ninety-eight, the restrictions
set forth in subsection (a), section fifteen of this article shall
not apply to the credit allowed under this section. However, the
restrictions set forth in subsection (a), section fifteen of this
article and the exceptions thereto set forth in subsection (b) of
said section fifteen, shall remain fully applicable and in force
and effect for all other tax credits provided or allowable under
(b) Determination of credit. -- The amount of credit allowed
by subsection (a) shall be determined at the election of the
(1) By multiplying its adjusted qualified investment by its
new jobs percentage (as determined under section seven of this
article); or
(c) Corporate headquarters relocations after December 31,
1997. -- For purposes of corporate headquarters relocations
occurring on or after the first day of January, one thousand nine
hundred ninety-eight, and notwithstanding any other provision of
this article to the contrary:
(1) New jobs created in this state by relocation of a
corporate headquarters may include jobs created in this state
within twelve months before or after the month in which the
qualified investment in the corporate headquarters relocation is
placed into service or use in this state by:
(A) Relocation or transfer of employees of the corporation or
employees of a related corporation or related person from an
out-of-state location to the relocated corporate headquarters in
this state, who: (i) Are or become employees of the corporation
qualified investment in the corporate headquarters is placed into
service or use in this state; and (ii) whose regular place of work
is in the corporate headquarters, or
(B) New employees of the corporation whose regular place of
work is in the corporate headquarters.
(2) Multiple year projects certified under section four-b of
this article may be allowed for corporate headquarters relocations
(d) Application of credit. -- The credit allowed by this section shall be applied in the manner prescribed in section five
of this article: Provided, That the amount of corporation net
income taxes against which the credit allowed by this section may
be applied shall be the sum of the corporation net income tax due
on adjusted federal taxable income allocated to this state under
section seven, article twenty-four of this chapter, plus that
portion of the corporation net income tax due on adjusted federal
taxable income apportioned to this state under section seven,
article twenty-four of this chapter, that is further apportioned to
the qualified investment using the payroll factor provided in
paragraph (1), subsection (h) of said section five or an
alternative means of apportionment as prescribed by the tax
commissioner under said section five. For all other purposes, the
credit allowed by this section shall be treated as credit allowed
by section four of this article.
(1) Adjusted qualified investment. -- The term "adjusted
qualified investment" means the taxpayer's qualified investment in
the corporate headquarters as determined under section six of this
article and rules of the tax commissioner, plus the cost of the
reasonable and necessary expenses it incurred to relocate its
corporate headquarters at a location in this state from its present
location outside this state.
(2) Corporate headquarters. -- The term "corporate
headquarters" means the place at which the corporation has its commercial domicile and from which the business of the corporation
is primarily conducted.
(3) Reasonable and necessary expenses incurred to relocate
corporate headquarters. -- The phrase "reasonable and necessary
expenses incurred to relocate corporate headquarters" means only
those expenses incurred and paid by the corporation, to unrelated
third parties, to move its corporate headquarters and its corporate
headquarters employees to this state that are, upon application by
the corporation, determined by the tax commissioner to have been
both reasonable and necessary to effectuate the move.
(4) The corporation. -- For purposes of this section, the
term "the corporation" means the corporation for which the
corporate headquarters is relocated.
(f) Effective date. -- The credit allowed by this section as
amended in the year one thousand nine hundred ninety-eight shall be
allowable for corporate headquarters placed in service or use on or
after the first day of January, one thousand nine hundred
WVC 11 - 13 C- 4 B
(a) In general. -- A project certified by the tax commissioner
shall be eligible for the credit allowable by this article. A
project eligible for certification under this section is one where:
(1) The qualified investment under this article creates at
least fifty new jobs but such qualified investment is placed in
service or use over a period of three successive tax years: Provided, That such qualified investment is made pursuant to a
written business facility development plan of the taxpayer
providing for an integrated project for investment at one or more
new or expanded business facilities, a copy of which must be
attached to the taxpayer's application for project certification
and approved by the tax commissioner, and the qualified investment
placed in service or use during the first tax year would not have
investment placed in service or use during the next two succeeding
tax years;
(2) The qualified investment is made by one or more persons,
but some or all of the new jobs created at each new or expanded
business facility as a result of the qualified investment are
created by one or more other persons: Provided, That at least
fifty new jobs are created at the new or expanded business facility
or facilities in which the qualified investment is made, and such
jobs are, upon application, certified by the tax commissioner as
new jobs created as a direct result of the qualified investment,and that such qualified investment is made pursuant to a written
business facility development plan of the taxpayer providing for an
integrated project for investment at one or more new or expanded
business facilities, a copy of which must be attached to the
taxpayer's application for project certification and approved by
the tax commissioner;
(3) The qualified investment is made by one or more persons
but some or all of the new jobs created as a direct result of the
qualified investment are created by one or more other persons: Provided, That at least fifty new jobs are created within a fifty
mile radius of each new or expanded business facility in which the
qualified investment is made, and such jobs are, upon application,
certified by the tax commissioner as being new jobs created as a
direct result of the qualified investment, and that such qualified
investment is made pursuant to a written business facility
development plan of the taxpayer providing for an integrated
project for investment at one or more new or expanded business
facilities, a copy of which must be attached to the taxpayer's
application for project certification and approved by the tax
(b) Application for certification. -- The application for
certification of a project under this section shall be filed with
and approved by the tax commissioner prior to any credit being
claimed or allowed for the project's qualified investment and new
jobs created as a direct result of the qualified investment. This
application shall be approved in writing by all the participants in
the project and shall contain such information as the tax
commissioner may require to determine whether the project should be
certified as eligible for credit under this article.
(1) If the certified project for which qualified investment is
made involves one or more persons making the capital investment and
one or more persons, or a combination thereof, creating at least
fifty new jobs at the site of the new or expanded business facility
or facilities, then credit shall be allowed under this article for
the certified project based upon the qualified investment in the
certified project (as determined under section six) multiplied by
the project's new jobs percentage (determined under section seven).
(2) If the certified project for which qualified investment is
fifty new jobs located within a fifty mile radius of each new or
expanded business facility in which the qualified investment is
made, then credit shall be allowed under this article for the
certified project based upon the qualified investment in the
(3) The amount of credit allowable, as determined under
subdivision (1) or (2), above, shall be applied as provided in
section five, and shall be claimed in the manner specified in the
project's application to the tax commissioner for certification
under this section, by one participant in the project or divided
among the several participants in the project, and for this purpose
the numerator of the payroll factor shall be the total compensation
paid in this state during the taxable year by all project
participants to all new employees filling the new jobs created and the denominator shall be the total compensation paid in this state
during the taxable year by all project participants to their
employees. Such allocation, if approved by the tax commissioner,
shall constitute a binding election by the participants in the
project for the entire term during which the credit attributable to
the qualified investment in the certified project may be applied to
reduce tax liabilities. The participant or participants claiming
the credit for qualified investments in a certified project shall
annually file with their income tax returns filed under this
(A) Certification that the participant's qualified investment
property continues to be used in the project and if disposed ofduring the tax year, was not disposed of prior to expiration of its
(B) Certification that the new jobs created by the project's
qualified investment continue to exist and are filled by persons
who are residents of this state; and
(C) Such other information as the tax commissioner requires to
determine continuing eligibility to claim the annual credit
allowance for the project's qualified investment.
(1) New employee. -- The term "new employee" means a person
residing and domiciled in this state, hired by a participant to
fill a position for a job which previously did not exist in this
state prior to the date on which the project's qualified investment
is placed in service or use in this state. In no case shall the
new employees allowed for purposes of this credit exceed the total increases in the number of persons employed by the project's
participants (considered as a group) in this state. A person shall
be deemed to be a "new employee" if such person's duties in
connection with the operation of the certified project are on:
(2) New job. -- The term "new job" means a job which did not
exist in this state prior to the project's qualified investment
being made, and which is filled by a new employee.
(3) Participant. -- The term "participant" means any person
who directly makes a qualified investment in a certified project,
or who employs persons filling the jobs certified by the tax
commissioner as being new jobs created as a direct result of the
project's qualified investment.
(1) This section shall apply to a project having qualified
investment of at least fifty million dollars placed in service or
use between the first day of March, one thousand nine hundred
eighty-five, and the first day of February, one thousand nine hundred eighty-six, and shall also apply to qualified investment
made on or after the first day of February, one thousand nine
hundred eighty-six.
(2) The application for project certification for a project
having qualified investment of at least fifty million dollars
placed in service or use between the first day of March, one
thousand nine hundred eighty-five, and the first day of February,
one thousand nine hundred eighty-six, shall be deemed timely filed
under subsection (b) of this section only if such application is
filed with the tax commissioner prior to the thirty-first day of
December, one thousand nine hundred eighty-six: Provided, That the
tax commissioner shall not certify such project until the project
participants certify that at least fifty new jobs were created by
them prior to the first day of January, one thousand nine hundred
eighty-eight, as a direct result of their qualified investment in
the project, and that such jobs did not previously exist in this
state, determined as of the thirty-first day of January, one
thousand nine hundred eighty-six; that the inclusion of such
property shall not give rise to a refund or credit of any taxes
administered under this chapter for taxable years ending before the
first day of January, one thousand nine hundred eighty-seven; and
that the ten-year credit period for such certified project shall
begin with the current taxable year of the project participant or
participants who will be claiming the allowable credit.
WVC 11 - 13 C- 5 §11-13C-5. Application of annual credit allowance.
the current taxable year is an amount equal to the sum of the
following as modified under subsections (o) and (p) of this
(1) The one-tenth part allowed under section four of this
article for qualified investment placed into service or use during
a prior taxable year; plus
(2) The one-tenth part allowed under section four of this
the current taxable year; plus
(3) The one-tenth part allowed under section four-a of this
article for locating corporate headquarters in this state; or the
amount allowed under section seven-a of this article of the taxable
(b) Application of current year annual credit allowance. --
The amount determined under subsection (a) of this section shall be
allowed as a credit against that portion of the taxpayer's state
tax liability which is attributable to and the direct result of the
taxpayer's qualified investment, and shall be applied as provided
in subsections (c) through (k), both inclusive, of this section,
(1) That portion of the allowable credit attributable to
qualified investment in a business or other activity subject to thetaxes imposed by article thirteen of this chapter shall first be
applied to reduce up to eighty percent of the taxes imposed by said
article for the taxable year (determined before application of
allowable credits against tax and the annual exemption).
(2) If the taxes due under article thirteen of this chapter
are not solely attributable to and the direct result of the
taxpayer's qualified investment in a business or other activity
taxable under said article, the amount of such taxes, which are so
attributable, shall be determined by multiplying the amount of
taxes due under said article, for the taxable year (determined
before application of any allowable credits against tax and the
annual exemption), by a fraction, the numerator of which is all
wages, salaries and other compensation paid during the taxable year
to all employees of the taxpayer employed in this state, whose
positions are directly attributable to the qualified investment in
a business or other activity taxable under said article. The
denominator of the fraction shall be the wages, salaries and other
compensation paid during the taxable year to all employees of the
taxpayer employed in this state, whose positions are directly
attributable to the business or other activity of the taxpayer that
is taxable under said article.
(3) The annual exemption allowed by section three, article
thirteen of this chapter, plus any credits allowable under articles
thirteen-d and thirteen-e of this chapter, shall be applied against
and reduce only the portion of article thirteen taxes notapportioned to the qualified investment under this article: Provided, That any excess exemption or credits may be applied
against the amount of article thirteen taxes apportioned to the
qualified investment under this article, that is not offset by the amount of annual credit against such taxes allowed under this
article for the taxable year, unless their application is otherwise
qualified investment in a business or other activity subject to the
taxes imposed by article twelve-a of this chapter shall first be
article for the taxable year.
(2) If the taxes due under article twelve-a of this chapter
taxes due under said article for the taxable year, by a fraction,
the numerator of which is all wages, salaries and other
attributable to the qualified investment in a business or other
activity taxable under said article. The denominator of the
fraction shall be the wages, salaries and other compensation paid
during the taxable year to all employees of the taxpayer, employed
in this state, whose positions are directly attributable to the
business or other activity of the taxpayer that is taxable under
(1) On and after the first day of July, one thousand nine hundred eighty-seven, that portion of the allowable credit
attributable to qualified investment in a business or other
activity subject to the tax imposed by article thirteen-a of this
chapter, and qualified investment in a business or activity that
was subject to the tax imposed by article thirteen of this chapter
prior to said first day of July, but on and after said first day of
July, is subject to the tax imposed by article thirteen-a of this
chapter, shall first be applied to reduce up to eighty percent of
the taxes imposed by said article for the taxable year (determined
before application of any allowable credits against tax).
(2) If the taxes due under article thirteen-a of this chapter
taxable under said article, the amount of such taxes which are so
taxes due under said article for the taxable year (determined
before application of any allowable credits against tax), by a
fraction, the numerator of which is all wages, salaries and other
during the taxable year to all employees of the taxpayer employed
(3) Any credits allowable under articles thirteen-d and
thirteen-e of this chapter shall be applied against and reduce only
the portion of article thirteen-a taxes not apportioned to the
qualified investment under this article: Provided, That any excess
credits may be applied against the amount of article thirteen taxes
apportioned to the qualified investment under this article, that is
not offset by the amount of annual credit against such taxes
allowed under this article for the taxable year, unless their
application is otherwise prohibited by this chapter.
(1) On and after the first day of July, one thousand ninehundred eighty-seven, that portion of the allowable credit
activity subject to the taxes imposed by article thirteen-b of this
before application of allowable credits against tax) and qualified
investment in a business or activity that was subject to the taxes
imposed by article twelve-a of this chapter prior to said first day
of July, but on and after said first day of July is subject to the
tax imposed by article thirteen-b of this chapter.
(2) If the taxes due under article thirteen-b of this chapter
taxes due under said article for the taxable year (determined before application of any allowable credits against tax), by a
taxpayer employed in this state whose positions are directly
in this state whose positions are directly attributable to the
(1) On and after the first day of July, one thousand nine
hundred eighty-seven, that portion of the allowable credit
attributable to qualified investment in a business or activity
subject to the taxes imposed by article twenty-three of this
was subject to the taxes imposed by article thirteen of this
chapter prior to said first day of July, but on and after said
first day of July, is subject to the tax imposed by article twenty-three of this chapter, shall first be applied to reduce up to
eighty percent of the taxes imposed by said article for the taxable
year (determined after application of the credits against tax
provided in section seventeen of said article, but before
application of any other allowable credits against tax).
(2) If the taxes due under article twenty-three of this
chapter are not solely attributable to and the direct result of the taxpayer's qualified investment in a business or other activity
taxable under said article for the taxable year (determined after
application of the credits against tax provided in section
allowable credits), by a fraction, the numerator of which is all
denominator of the fraction shall be wages, salaries and other
the portion of article twenty-three taxes not apportioned to the
exemption or credits may be applied against the amount of article
twenty-three taxes apportioned to the qualified investment under
this article that is not offset by the amount of annual credit
against such taxes allowed under this article for the taxable year,
unless their application is otherwise prohibited by this chapter.
(1) After application of subsections (c) through (g), both
inclusive of this section, any unused credit shall next be applied
to reduce up to eighty percent of the taxes imposed by article twenty-four of this chapter for the taxable year (determined beforeapplication of allowable credits against tax).
(2) If the taxes due under article twenty-four of this chapter
(determined before application of allowable credits against tax)
taxpayer's qualified investment, the amount of such taxes which are
so attributable, shall be determined by multiplying the amount of
before application of allowable credits against tax), by a
attributable to the qualified investment. The denominator of the
(3) Any credits allowable under article twenty-four of this
chapter shall be applied against and reduce only the amount of
article twenty-four taxes not apportioned to the qualified
investment under this article: Provided, That any excess credits
may be applied against the amount of article twenty-four taxes
apportioned to the qualified investment under this article that is
(1) If the person making the qualified investment is an electing small business corporation (as defined in Section 1361 of
the United States Internal Revenue Code of 1954, as amended), a
partnership or a sole proprietorship, then any unused credit (after
application of subsections (c), (d), (e), (f) and (g)) shall be
allowed as a credit against up to eighty percent of the taxes
imposed by article twenty-one of this chapter on the income from
business or other activity subject to tax under article twelve-a,
thirteen, thirteen-a, thirteen-b or twenty-three of this chapter.
(2) Electing small business corporations, partnerships and
allowed by this article among its members in the same manner as
profits and losses are allocated for the taxable year.
(3) If the amount of taxes due under article twenty-one of
this chapter (determined before application of allowable credits
against tax) that is attributable to business, is not solely
attributable to and the direct result of the qualified investment
of the electing small business corporation, partnership, other
unincorporated organization or sole proprietorship, the amount of
such taxes which are so attributable shall be determined by
multiplying the amount of taxes due under said article (determined
before application of allowable credits against tax), that is
attributable to business by a fraction, the numerator of which is
all wages, salaries and other compensation paid during the taxable
year to all employees of the electing small business corporation,
partnership, other unincorporated organization or sole
proprietorship employed in this state, whose positions are directly
attributable to the qualified investment. The denominator of the fraction shall be the wages, salaries and other compensation paid
during the taxable year to all employees of the taxpayer.
(4) No credit shall be allowed under this section against any
employer withholding taxes imposed by article twenty-one of this
(j) For tax years beginning after the thirty-first day of
December, one thousand nine hundred ninety-two, and thereafter, if
the formula provisions of subsections (c) through (i) of this
section, inclusive, do not fairly represent the taxes solely
investment of the taxpayer and all other project participants in
the business or other activity subject to tax, the commissioner may
require, in respect to all or any part of the taxpayer's businesses
or activities, if reasonable:
(3) The inclusion of one or more additional factors which will
fairly represent the taxes solely attributable to and the direct
result of the qualified investment of the taxpayer and all other
project participants in the businesses or other activities subject
to tax; or
(4) The employment of any other method to effectuate an
equitable attribution of the taxes.
In order to effectuate the purposes of this subsection, the
commissioner shall propose for promulgation legislative rules in
accordance with article three, chapter twenty-nine-a of this code: Provided, That the initial promulgation may be by emergency rule. The rule shall set forth the standards by which this subsection
will be implemented and enforced: Provided, however, That with
regard to investment placed in service prior to the passage of this
provision, taxpayers having a specific written determination from
the tax commissioner that the taxpayer is authorized or required to
take credit against tax not attributable to qualified investment
shall not be subject to the alternative allocation of credit
provided for under this subsection.
eighty-seven, for purchases of tangible personal property and
taxable services made on or after that date, that portion of the
allowable credit, which is attributable to qualified investment in
a business or activity subject to the taxes imposed by articles
fifteen and fifteen-a of this chapter on purchases for use or
consumption in the conduct of such business or activity, shall be
articles on purchases that are directly used or consumed in the
qualified investment activity. When property and services
purchased for use or consumption are not solely used or consumed in
the qualified investment activity, the cost thereof shall be
apportioned between such activities. Only that amount apportioned
to purchases directly used or consumed in the qualified investment
activity shall be included when applying the credit allowable under
this subsection. On and after the first day of July, one thousand
nine hundred ninety-three, for purchases of tangible personal property and taxable services made on or after that date for use or
consumption in the conduct of business, no portion of the allowable
credit may be applied against the taxes imposed by said articles.
(l) Ad valorem property taxes; unemployment taxes and workers'
compensation premiums. --
(1) After application of subsections (a) through (i), both
inclusive, of this section, any unused credit shall be applied as
a rebate for payment of the sum of the following amounts:
(A) Eighty percent of the ad valorem property taxes imposed by
levying bodies pursuant to article eight of this chapter, for the
taxable year (including payments in lieu of such taxes), on
property of the taxpayer that is directly attributable to the
qualified investment (including property having a useful life of
less than four years) of the taxpayer, in the new or expanded
business facility of the taxpayer resulting in new jobs; plus
(B) Eighty percent of the taxes imposed by article five,
chapter twenty-one-a of this code for the taxable year attributable
to the compensation of new employees filling the new jobs that are
directly attributable to the qualified investment; plus
(C) Twenty percent of the workers' compensation premiums
imposed by article two, chapter twenty-three of this code, for the
taxable year attributable to the compensation paid new employees
filling the new jobs, that are directly attributable to the
(2) A taxpayer eligible to claim this rebate shall apply
either the amount of the unused credit or the sum determined under
subdivision (1) of this subsection, whichever is less, against the remaining twenty percent of the taxes imposed by articles twelve-a,
thirteen, thirteen-a, thirteen-b, twenty-one, twenty-three and
twenty-four of this chapter, attributable to the qualified
investment under this article. If any amount of rebate remains
after its application against the remaining twenty percent of taxesas aforesaid, the amount remaining shall be carried forward to each
ensuing tax year until used or the expiration of the twelfth
subsequent tax year in which the qualified investment was placed in
service or use in this state by the taxpayer.
(m) Unused credit forfeited. -- If any credit remains after
application of subsection (b) of this section, the amount thereof
shall be forfeited. No carryover to a subsequent taxable year or
carryback to a prior taxable year shall be allowed for the amount
of any unused portion of any annual credit allowance, except as
specifically provided in subsection (l), (o) or (p) of this
(n) Notwithstanding any provision of this section to the
contrary and notwithstanding the reenactment of this section later
in time than the enactment or reenactment of section fourteen of
this article, the restrictions, limitations, constraints and
provisions of said section shall apply to and supersede the
(o) Deferral of twenty percent of annual credit, eighty
percent current limitation. --
(1) Eighty percent of the amount of annual credit calculated
under subsections (a) through (n) of this section before
application of the minimum severance tax against coal and before the adjustment set forth in subsection (p) of this section, shall
be applied against the taxes enumerated in subsections (c) through
(i), inclusive, of this section for the current tax year.
(2) The remaining twenty percent of such annual credit so
calculated in subsections (c) through (n) of this section shall be
applied against the taxes enumerated in subsections (c) through
(i), inclusive, of this section beginning in the tenth tax year
subsequent to the tax year in which qualified investment was first
placed in service or use in this state by the taxpayer, and the
amount thereof remaining shall be carried forward each ensuing tax
year until used or until the expiration of the twelfth tax year
placed in service or use in this state by the taxpayer. No
deferral of credit under this subsection shall apply to this credit
when applied in such tenth through twelfth years.
(1) After application of up to eighty percent of annual credit
against the taxes enumerated in subsections (c) through (i),
inclusive, of this section for the current tax year under
subsection (o) of this section, there shall be allowed an
additional amount of credit, as determined under subdivision (2) of
this subsection, which may offset up to one hundred percent of the
remaining taxes enumerated in subsections (g), (h) and (i), in that
order, of this section for the current tax year. Any credit
calculated and determined under this section which remains after
application against the taxes enumerated in subsections (g), (h)
and (i) under this section shall be forfeited and shall not carryover to any other taxable year.
(2) The amount of credit allowable under this subsection shall
be the lesser of one third of the taxpayer's minimum severance tax
on coal payable, or the taxpayer's net minimum severance tax on
coal payable. For purposes of this subsection, the term "net
minimum severance tax on coal payable" means the amount of the
excess of the minimum severance tax on coal over the amount of the
state severance tax on coal severed and extracted by the taxpayer
in this state not including the additional severance tax on coal
imposed by section six, article thirteen-a of this chapter,
calculated after application of the credit allowed under this
article, and before application of all other credits, and after
application of the five hundred dollar exemption to the said
severance tax on coal.
(1) This section, as amended in the year one thousand nine
hundred eighty-six, shall be effective upon passage. It shall be
retroactive, and shall be in lieu of the method provided by this
section for application of this credit prior to this amendment, for
qualified investment made on or after the first day of March, onethousand nine hundred eighty-five.
(2) This section, as amended in the year one thousand nine
hundred eighty-seven, shall be effective for taxable years ending
(3) This section, as amended in the year one thousand nine
hundred ninety-three, shall be effective for taxable years ending after the thirty-first day of May, one thousand nine hundred
WVC 11 - 13 C- 6 §11-13C-6. Qualified investment.
or leased for business expansion shall be the applicable percentage
of the cost of each property purchased or leased for the purpose of
business expansion which is placed in service or use in this state
by the taxpayer during the taxable year.
(a), the applicable percentage of any property shall be determined
The useful life of any property, for purposes of this section,
property purchased for business expansion shall be determined under
given in trade or exchange for the property purchased for business
damaged or destroyed by fire, flood, storm or other casualty, or isstolen, then the cost of replacement property shall not include any
(A) The cost of real property acquired by written lease for a
primary term of ten years or longer shall be one hundred percent of
(B) The cost of tangible personal property acquired by written
lease for a primary term of:
(i) Four years, or longer, shall be one third of the rent
reserved for the primary term of the lease;
(ii) Six years, or longer, shall be two thirds of the rent
reserved for the primary term of the lease; or
(iii) Eight years, or longer, shall be one hundred percent of
twenty years: Provided, That in no event shall rent reserved
of the equipment, determined using the straight-line method of
(4) Property purchased for multiple use. -- In the case of
property purchased for use as a component part of a new or expanded
business taxable under article twelve-a of this chapter, and use as
a component part of a new or expanded business taxable under
article thirteen of this chapter, the cost thereof shall be
apportioned between such businesses. The amount apportioned toeach such new or expanded business for which credit is allowed
under this article, shall be considered as a qualified investment
subject to the conditions and limitations of this article.
(6) Transferred property. -- The cost of property used by the
taxpayer out-of-state and then brought into this state, shall be
determined based on the remaining useful life of the property at
the time it is placed in service or use in this state, and the cost
shall be the original cost of the property to the taxpayer less
straight line depreciation allowable for the tax years or portions
thereof taxpayer used the property outside this state. In the case
of leased tangible personal property, cost shall be based on the
period remaining in the primary term of the lease after the
property is brought into this state for use in a new or expanded
business facility of the taxpayer, and shall be the rent reserved
for the remaining period of the primary term of the lease, not to
exceed twenty years, or the remaining useful life of the property
(determined as aforesaid), whichever is less.
(7) Natural resources in place. -- In the case of natural
resources in place, the property must be capable of sustained
production for a period of at least ten years. If this
qualification is met, then the qualified investment is one hundredpercent of the purchase price of the natural resource in place that
is attributable to ten years of production, but not more than
twenty years of production. If such price is not quantifiable at
the time the mining operation is placed into production, cost shall
be determined annually and shall be the amount of royalties
actually paid to the owner of the natural resource in place during
each year for a total period of ten years. The amount of such
royalties multiplied by the taxpayer's new jobs percentage
(determined at the time the mining operation is placed in service
or use) divided by ten establishes the credit allowable each year
for ten successive years beginning with the year in which the
royalties were paid.
WVC 11 - 13 C- 7 §11-13C-7. New jobs percentage.
(a) In general. -- The new jobs percentage is based on the
number of new jobs created in this state that are directly
attributable to the qualified investment of the taxpayer.
(a), the applicable new jobs percentage shall be determined under
(c) When a job is attributable. -- An employee's position is
directly attributable to the qualified investment if:
(1) The employee's service is performed or his base of
operations is at the new or expanded business facility;
(2) The position did not exist prior to the construction,
renovation, expansion or acquisition of the business facility and
the making of the qualified investment; and
(3) But for the qualified investment, the position would not
(d) Certification of new jobs. -- With the annual return for
the taxes imposed by article twelve-a or thirteen of this chapter,filed for the taxable year in which the qualified investment is
first placed in service or use in this state, the taxpayer shall
estimate and certify the number of new jobs reasonably projected to
be created by it in this state within the period prescribed in
subsection (f), that are, or will be, directly attributable to the
qualified investment of the taxpayer: Provided, That on and after
phrase "taxes imposed by article twelve-a or thirteen (or both) of
this chapter" shall mean "taxes imposed by articles thirteen,
thirteen-a, thirteen-b, twenty-one, twenty-three and twenty-four of
this chapter (or any one or combination of such articles of this
chapter)."
(e) Equivalency of permanent employees. -- The hours of part-time employees shall be aggregated to determine the number of
equivalent full-time employees for the purpose of subsection (b)
hereof but not for the purposes of subsection (c) hereof.
(f) Redetermination of new jobs percentage. -- With the annual
return for the taxes imposed by article twenty-one or twenty-four
of this chapter, filed for the third taxable year in which the
qualified investment is in service or use, the taxpayer shall
certify the actual number of new jobs created by it in this state,
that are directly attributable to the qualified investment of the
taxpayer: Provided, That on and after the first day of July, one
thousand nine hundred eighty-seven, the phrase "taxes imposed by
article twelve-a or thirteen (or both) of this chapter" shall mean"taxes imposed by articles thirteen, thirteen-a, thirteen-b,
(1) If the actual number of jobs created would result in a
higher new jobs percentage, the credit allowed under this article
shall be redetermined and amended returns filed for the first and
second taxable years that the qualified investment was in service
or use in this state.
(2) If the actual number of jobs created would result in a
lower new jobs percentage, the credit previously allowed under this
article shall be redetermined and amended returns filed for the
first and second taxable years. In applying the amount of
redetermined credit allowable for the two preceding taxable years,
the redetermined credit shall first be applied to the extent it was
originally applied in such prior two years to personal income
taxes, then to corporation net income taxes, then to business
franchise taxes, then to telecommunications taxes, then to
severance taxes, then to carrier income taxes and lastly to
business and occupation taxes. Any additional taxes due under this
chapter shall be remitted with the amended returns filed with the
that the overclaimed amount of the new jobs percentage was due to
reasonable cause and not due to willful neglect.
WVC 11-13C-7A
(a) "Small business" defined. -- For purposes of this section,
the term "small business" means a business which has an annual
payroll of one million five hundred thousand dollars or less, or
annual gross sales of not more than five million dollars: Provided, That beginning the first day of January, one thousand
nine hundred eighty-nine, and each first day of January thereafter,
the tax commissioner shall prescribe amounts which shall apply in
lieu of the above amounts during that calendar year. These amounts
shall be prescribed by increasing the amount of each by the
cost-of-living adjustment for such calendar year. The requirements
for annual payroll and annual gross receipts, once met by a given
taxpayer in that taxable year when qualified investment is first
placed in service or use shall not again be applied to that same
taxpayer in subsequent years to defeat the small business credit to
which the taxpayer gained entitlement in that year. However, the
median compensation requirements applicable to any small business,
except a small business entitled to a certified project credit,
shall be determined when qualified investment is first placed in
service or use; and subsequently redetermined inflation adjusted
amounts for median compensation for each year shall be the
requirements applicable to that small business for each year
throughout the ten-year credit period and any further carryover or
other extended credit period for the original credit to which the
requirements relate.
(1) Cost-of-living adjustment. -- For purposes of subsection
(a), the cost-of-living adjustment for any calendar year is the
percentage (if any) by which:
(A) The consumer price index for the preceding calendar year
(B) The consumer price index for the calendar year one
thousand nine hundred eighty-seven.
(2) Consumer price index for any calendar year. -- For
purposes of subdivision (1), the consumer price index for any
calendar year is the average of the federal consumer price index as
of the close of the twelve-month period ending on the thirty-first
day of August of such calendar year.
(3) Consumer price index. -- For purposes of subdivision (2),
the term "Federal Consumer Price Index" means the last consumer
price index for all urban consumers published by the United States
(4) Rounding. -- If any increase under subdivision (1) is not
a multiple of fifty dollars, such increase shall be rounded to the
next lowest multiple of fifty dollars.
(1) Credit allowed. -- An eligible small business taxpayer
shall be allowed a credit against the portion of taxes imposed by
this state that are attributable to and the direct consequence of
the eligible small business taxpayer's qualified investment in a
new or expanded business in this state which results in the creation of at least ten new jobs. The amount of this credit shall
be determined as provided in this section.
(2) Amount of credit. -- The amount of credit allowable under
this section is determined by dividing the amount of the eligible
small business taxpayer's "qualified investment" (determined under
section six) in "property purchased for business expansion" (as
defined in section three) by ten. The amount of qualified
investment so apportioned to each year of the ten-year credit
period shall be the annual measure against which taxpayer's annual
new jobs percentage (determined under subsection (d)) is applied. The product of this calculation establishes the maximum amount of
credit allowable each year for ten consecutive years under this
section due to the qualified investment.
(3) Application of credit. -- The annual credit allowance must
be taken beginning with the taxable year in which the taxpayer
places the qualified investment into service or use in this state,
unless the taxpayer elects to delay the beginning of the ten-year
credit period until the next succeeding taxable year. This
election shall be made in the annual income tax return filed under
this chapter by the taxpayer for the taxable year in which the
qualified investment is placed in service or use. Once made, this
election cannot be revoked. The annual credit allowance shall be
taken and applied in the manner prescribed in section five.
(c) New jobs. -- The term "new jobs" has the meaning ascribed
to it in subdivision (14), subsection (b), section three of this article: Provided, That the median compensation of such new jobs
shall not be less than eleven thousand dollars per year and that
beginning the first day of January, one thousand nine hundred
eighty-nine, and each first day of January thereafter, the tax
commissioner shall adjust the median annual compensation specified
in this subsection by increasing the amount thereof by the annual
cost-of-living adjustment determined under subsection (a).
(1) The term "new employee" shall have the meaning ascribed to
it in subdivision (13), subsection (b), section three of this
article: Provided, That such term shall not include employees
filling new jobs who:
(A) Are related individuals, as defined in subsection (i),
section 51 of the Internal Revenue Code of 1986, or a person who
owns ten percent or more of the business with such ownership
interest to be determined under rules set forth in subsection (b),
section 267 of said Internal Revenue Code; or
(B) Worked for the taxpayer during the six-month period ending
on the date taxpayer's qualified investment is placed in service or use and is rehired by the taxpayer during the six-month
period beginning on the date taxpayer's qualified investment is
placed in service or use.
(2) When a job is attributable. -- An employee's position is
(A) The employee's service is performed or his or her base of
(B) The position did not exist prior to the construction,
(C) But for the qualified investment, the position would not
(d) New jobs percentage. -- The annual new jobs percentage is
based on the number of new jobs created in this state by the
taxpayer that is directly attributable to taxpayer's qualified
(1) If at least ten new jobs are created and filled during the
taxable year in which the qualified investment is placed in service
or use, the applicable new jobs percentage shall be thirty percent: Provided, That for each new job over ten, up to forty such
additional new jobs, the applicable new jobs percentage shall be
increased by adding thereto one half of one percent, with the
maximum new jobs percentage not to exceed fifty percent.
(2) During each of the remaining nine years of the ten-year
credit period, the annual new jobs percentage shall be based on the
average number of new jobs that were filled during that taxable
year: Provided, That for purposes of estimating the new jobs
percentage that will be applicable for each subsequent credit year,
the taxpayer shall use the new jobs percentage allowable for the
taxable year immediately prior thereto, and in the annual income
tax return filed under this chapter for the then current tax year,
taxpayer shall redetermine his or her allowable new jobs percentage for that year based on the average number of new employees employed
in new jobs during that year (determined on a monthly basis)
created as the direct result of taxpayer's qualified investment.
(e) Certification of new jobs. -- With the annual income tax
return filed under this chapter for each taxable year during the
ten-year credit period, the taxpayer shall certify:
(3) If the business is a partnership or electing small
business corporation, the amount of credit allocated to the
partners or shareholders, as the case may be;
(4) That qualified investment property continue to be used in
the business, or if any of it was disposed of during the year the
date of disposition and that such property was not disposed of
prior to expiration of its useful life, as determined under section
(5) That the new jobs created by the qualified investment
continue to exist and are filled by persons who meet the definition
of new employee (as defined in subdivision (1), subsection (c) of
this section) and are paid an average annual compensation equal to
or greater than the minimum average annual compensation required by
(f) Small business project. -- A small business may apply to
the tax commissioner under section four-b for certification of
subdivision (1), subsection (a), section four-b project if that project will create at least ten new jobs.
(g) Regulations. -- The tax commissioner shall prescribe such
regulations as he or she may deem necessary in order to determine
the amount of credit allowed under this section to a taxpayer; to
verify taxpayer's continued entitlement to claim such credit; and
to verify proper application of the credit allowed. The tax
commissioner may, by regulation, require a taxpayer intending to
claim credit under this section to file with the tax commissioner
a notice of intent to claim this credit, before the taxpayer begins
reducing his or her monthly or quarterly installment payments of
estimated tax for the credit provided in this section.
(1) The credit provided in this section shall be allowed for
qualified investment property purchased or leased after the
thirtieth day of June, one thousand nine hundred eighty-seven.
(2) The amendments to this section, enacted in the year one
thousand nine hundred ninety-eight, shall be retroactive to tax
years beginning on or after the first day of January, one thousand
WVC 11 - 13 C- 8 §11-13C-8. Forfeiture of unused tax credits; redetermination of
determined under section six of this article; or
(2) Ceases to be used in an eligible business of the taxpayer
in this state prior to the end of its useful life, as determined
under said section six, then the unused portion of the credit
allowed for such property shall be forfeited for the taxable year
and all ensuing years. Additionally, except when the property is
stolen, the taxpayer shall redetermine the amount of credit allowed
in all earlier years by reducing the applicable percentage of cost
of such property allowed under said section six, to correspond with
the percentage of cost allowable for the period of time that the
property was actually used in this state in the new or expanded
business of the taxpayer. Taxpayer shall then file a
reconciliation statement with its annual business and occupation
tax return or carrier income tax return, for the year in which the
forfeiture occurs and pay any additional taxes owed due to
reduction of the amount of credit allowable for such earlier years,
plus interest and any applicable penalties: Provided, That for
taxable periods beginning on or after the first day of July, onethousand nine hundred eighty-seven, such reconciliation statement
shall be filed with the annual return for the primary tax for which
the taxpayer is liable under articles thirteen, thirteen-a,
thirteen-b and twenty-three of this chapter.
(b) Cessation of operation of business facility. -- If during
any taxable year the taxpayer ceases operation of a business
facility in this state for which credit was allowed under this
article, before expiration of the useful life of property with
respect to which tax credit has been allowed under this article,
earlier years by reducing the applicable percentage of cost of such
property allowed under section six, to correspond with the
percentage of cost allowable for the period of time that the
property was actually used in this state in a business of the
taxpayer that is taxable under article twelve-a or thirteen of this
chapter. Taxpayer shall then file a reconciliation statement with
its annual business and occupation tax return or carrier income tax
return for the year in which the forfeiture occurs, and pay any
additional taxes owed due to reduction of the amount of credit
allowable for such earlier years, plus interest and any applicable
penalties: Provided, That for taxable periods beginning on or
after the first day of July, one thousand nine hundred eighty-seven, such reconciliation statement shall be filed with the annual
return for the primary tax for which the taxpayer is liable under
articles thirteen, thirteen-a, thirteen-b and twenty-three of this
(c) Reduction in number of employees. -- If during any taxable
year subsequent to the taxable year in which the new jobs
percentage is redetermined as provided in section seven of this
article, the average number of employees of the taxpayer, for the
then current taxable year, employed in positions created because of
and directly attributable to the qualified investment falls below
the minimum number of new jobs created upon which the taxpayer's
annual credit allowance is based, the taxpayer shall calculate what
his annual credit allowance would have been had his new jobs
percentage been determined based upon the average number of
employees, for the then current taxable year, employed in positions
created because of and directly attributable to the qualified
investment. The difference between the result of this calculation
and the taxpayer's annual credit allowance for the qualified
investment as determined under section four of this article, shall
be forfeited for the then current taxable year, and for each
succeeding taxable year unless for such succeeding taxable year the
taxpayer's average employment in positions directly attributable to
the qualified investment once again meets the level required to
enable the taxpayer to utilize its full annual credit allowance for
WVC 11 - 13 C- 8 A
(a) When recapture tax applies. -- (1) Any person who places business investment and jobs
expansion tax credit property in service or use after the twelfth
day of March, one thousand nine hundred ninety-four, and who fails
to use such qualified investment property for at least the period
of its useful life (determined as of the time the property was
placed in service or use), or the period of time over which tax
credits allowed under this article with respect to such property
are applied under this article, which ever period is less, and who
reduces the number of its employees filling new jobs in its
business in this state, which were created and are directly
attributable to the qualified investment property, after the third
taxable year in which the qualified investment property was placed
in service or use, or fails to continue to employ individuals in
all the new jobs created as a direct result of the qualified
investment property and used to qualify for the credit allowed by
this article, prior to the end of the tenth taxable year after the
qualified investment property was placed in service or use, such
person shall pay the recapture tax imposed by subsection (b) of
(2) This section shall not apply when section nine of this
article applies. However, the successor, or the successors, and
the person, or persons, who previously claimed credit under this
article with respect to such qualified investment property and thenew jobs attributable thereto, shall be jointly and severally
liable for payment of any recapture tax subsequently imposed under
this section with respect to such qualified investment property and
(b) Recapture tax imposed.
The recapture tax imposed by this subsection shall be the amount
(1) Full recapture. -- If taxpayer prematurely removes
qualified investment property placed in service after the twelfth
day of March, one thousand nine hundred ninety-four, (when
considered as a class) from economic service in such taxpayer's
qualified investment business activity in this state, and the
number of employees filling the new jobs created by such person
falls below fifty, taxpayer shall recapture the amount of credit
claimed under section five of this article for the taxable year,
and all preceding taxable years, on qualified investment property
which has been prematurely removed from service. The amount of tax
due under this subdivision of subsection (b) shall be an amount
equal to the amount of credit that is recaptured under this
(2) Partial recapture. -- If taxpayer prematurely removes
qualified investment business activity in this state, and thenumber of employees filling the new jobs created by such person
remains fifty or more, but falls below the number necessary to
sustain continued application of credit determined by use of the
new job percentage upon which such taxpayer's one-tenth annual
credit allowance was determined under section four, or seven-a of
this article, taxpayer shall recapture an amount of credit equal to
the difference between (A) the amount of credit claimed under
section five of this article for the taxable year, and all
preceding taxable years, and (B) the amount of credit that would
have been claimed in such years if the amount of credit allowable
under section four, or seven-a of this article had been determined
based on the qualified investment property which remains in service
using the average number of new jobs filled by employees in the
taxable year for which recapture occurs. The amount of tax due
under this subdivision of subsection (b) shall be an amount equal
to the amount of credit that is recaptured under this subdivision
(3) Additional recapture. -- If after a partial recapture
under subdivision (2) of this subsection, such taxpayer further
reduces the number of employees filling new jobs below fifty,
taxpayer shall recapture an additional amount determined as
provided under subdivision (1) of this subsection. The amount of
tax due under this subdivision of subsection (b) shall be an amount
(c) Recapture of credit allowed for projects. -- The tax
commissioner shall file in the West Virginia register by the First
day of July, one thousand nine hundred ninety-four, an emergency
legislative regulation explaining how the rules of this section
shall be applied in the case of projects certified under section
(d) Payment of recapture tax. -- The amount of tax recaptured
under this section shall be due and payable on the day such
person's annual return is due for the taxable year in which this
section applies, under article twenty-one, or twenty-four, of this
chapter. When the employer is a partnership, or s corporation, for
federal income tax purposes, the recapture tax shall be paid by
those persons who are partners in such partnership, or shareholders
in such s corporation, in the taxable year in which recapture
occurs under this section.
(e) Regulations. -- The tax commissioner shall promulgate such
legislative regulations as may be necessary to carry out the
purpose of this section and to implement the intent of the
Legislature. Such regulations shall be promulgated in accordance
WVC 11 - 13 C- 9 §11-13C-9. Transfer of qualified investment to successors.
(a) Mere change in form of business. -- Property shall not be
treated as disposed of under section eight of this article, by
long as the property is retained in a business in this state, and
business. In this event, the successor business shall be allowed
to claim the amount of credit still available with respect to the
business facility or facilities transferred, and the taxpayer
(transferor) shall not be required to redetermine the amount of
credit allowed in earlier years.
(b) Transfer or sale to successor. -- Property shall not be
treated as disposed of under section eight by reason of any
transfer or sale to a successor business which continues to operate
the business facility in this state. Upon transfer or sale, the
successor shall acquire the amount of credit that remains available
under this article for each subsequent taxable year and the
taxpayer (transferor) shall not be required to redetermine the
WVC 11 - 13 C- 10 §11-13C-10. Identification of investment credit property. Every taxpayer who claims credit under this article shall
each item of qualified property:
WVC 11 - 13 C- 11 §11-13C-11. Failure to keep records of investment credit property. A taxpayer who does not keep the records required for
identification of investment credit property, is subject to the
(1) A taxpayer shall be treated as having disposed of, during
the taxable year, any investment credit property which the taxpayer
cannot establish was still on hand, in this state, at the end of
(2) If a taxpayer cannot establish when investment credit
property reported for purposes of claiming this credit returned
during the taxable year was placed in service, the taxpayer shall
be treated as having placed it in service in the most recent prior
year in which similar property was placed in service, unless the
taxpayer can establish that the property placed in service in the
most recent year is still on hand. In that event, the taxpayer
will be treated as having placed the returned property in service
in the next most recent year.
WVC 11 - 13 C- 12 §11-13C-12. Interpretation and construction. (a) No inference, implication or presumption of legislative
construction or intent shall be drawn or made by reason of the
location or grouping of any particular section, provision or
portion of this article; and no legal effect shall be given to any
descriptive matter or heading relating to any section, subsection
or paragraph of this article.
(b) The provisions of this article shall be liberally
construed in order to effectuate the legislative intent recited in
WVC 11 - 13 C- 13 §11-13C-13. Severability.
WVC 11 - 13 C- 14 §11-13C-14. Restrictions and limitations on credits allowed by this article.
(a) Findings. -- The Legislature finds that the tax credits
allowed under provisions of this article heretofore enacted have
not effectively and efficiently increased employment through
investment in certain industry segments; that while there has been
a significant net decrease in employment in the coal industry in
recent years the amount of credit being claimed by producers of
coal has significantly increased; that the increasing cost of the
credits allowed by this article to coal producers is eroding the
state's ability to reasonably fund essential state services such as
public education, public safety and basic human services; and that
this erosion will continue unless remedial legislation is enacted.
(b) Construction. -- The rule of statutory construction
codified in subsection (b), section twelve of this article, is
hereby replaced with a rule of reasonable construction in which the
burden of proof is on the taxpayer to establish by clear and
convincing evidence that the taxpayer is entitled to the benefits
allowed by this article.
(1) Notwithstanding any provision in this chapter to the
contrary, no credit shall be allowed against the taxes imposed by
article thirteen-a of this chapter for taxable years ending on or
after the tenth day of March, one thousand nine hundred ninety,
unless one of the transition rules in paragraph (2) of this subsection (c) applies.
(2) Transition rules. -- The general rule stated in paragraph
(1) of this subsection (c) shall not apply:
(A) To qualified investment property placed in service or use
prior to the tenth day of March, one thousand nine hundred ninety.
(B) To property purchased or leased for business expansion
that is placed in service or use on or after the tenth day of
March, one thousand nine hundred ninety, if at least one of the
following clauses applies to such property:
(i) The new or expanded business facility was constructed,
reconstructed or erected, pursuant to a written construction
contract executed prior to the tenth day of March, one thousand
nine hundred ninety, as limited to the provisions of such contract
as of such date then binding on the taxpayer, but only to the
extent such new or expanded business facility is placed in service
or use prior to the first day of January, one thousand nine hundred
(ii) The new or expanded business facility which is part of a
project described in paragraph (1), subsection (a), section four-b
of this article, was constructed, reconstructed or erected,
pursuant to a written construction contract executed prior to the
tenth day of March, one thousand nine hundred ninety, as limited to
the provisions of such contract as of such date then binding on the
taxpayer: Provided, That only that portion of the contract price
attributable to that percentage of the construction contract completed prior to the first day of January, one thousand nine
hundred ninety-two, (determined under principles set forth in
Section 460(b) of the Internal Revenue Code of 1986, as in effect
before the tenth day of March, one thousand nine hundred ninety,
which is placed in service or use prior to the first day of
January, one thousand nine hundred ninety-four, may be treated as
property purchased for business expansion under section six of this
(iii) The new or expanded business facility was purchased or
leased pursuant to a written contract executed prior to the tenth
day of March, one thousand nine hundred ninety, as limited to the
provisions then binding on the taxpayer as of such date, but only
to the extent such new or expanded business facility is placed in
service or use prior to the first day of January, one thousand nine
(iv) The machinery or equipment or other tangible personal
property purchased or leased for business expansion at a new or
expanded business facility was purchased or leased by the taxpayer
pursuant to a written contract to purchase or lease identifiable
tangible personal property executed before the tenth day of March,
one thousand nine hundred ninety, as limited to the provisions of
such written contract then binding on the taxpayer, but only to the
extent the tangible personal property purchased or leased under
such contract is placed in service or use before the first day of
January, one thousand nine hundred ninety-two: Provided, That when such tangible personal property is purchased or leased as aforesaid
as part of a project described in clause (ii) of this subparagraph
(B), such tangible personal property must be placed in service or
use prior to the first day of January, one thousand nine hundred
ninety-four, to be treated as property purchased or leased for
business expansion under section six of this article.
(C) To property purchased or leased for business expansion
March, one thousand nine hundred ninety, as part of a project
otherwise eligible for the credit under subsection (a), section
four-b of this article, if all of the requirements of clauses (i),
(ii), (iii) and (iv) of this subparagraph are satisfied:
(i) The taxpayer and other participants in the project, if
any, have made investments in property purchased or leased for
business expansion as defined in subsection (b)(19), section three
of this article prior to the tenth day of March, one thousand nine
hundred ninety, in excess of ten million dollars.
(ii) The investments described in clause (i) were made
pursuant to a plan for an integrated project to be developed over
a period of one or more years and with the expectation of making
additional investments in the integrated project.
(iii) The portion of the project constructed, purchased or
leased after the tenth day of March, one thousand nine hundred
ninety, meets the definition of new business facility in subsection
(e)(3) of this section.
(iv) The new jobs created by the project after the tenth day
of March, one thousand nine hundred ninety, are filled by new
employees as defined in subsection (e) (4) of this section.
(A) Notice required. -- Any person intending to assert a claim
for credit based, in whole or in part, on application of the
transition rules in subparagraph (B) or (C), paragraph (2) of this
subsection (c), shall file written notice of such intention with
the tax commissioner on or before the first day of July, one
thousand nine hundred ninety. In the case of a multiparticipant
project, this notice may be filed by the managing project
participant on behalf of all participants in such project. Such
notice shall be in a form prescribed by the tax commissioner and
all information required by such form shall be provided.
(B) Failure to file notice. -- If any person fails to timely
file the notice required by this paragraph (3), such person shall
be precluded from claiming credit under this article for such
(d) Treatment of successor project participants. -- Whenever
a participant in a project certified under paragraph (2) or (3),
subsection (a), section four-b of this article, is replaced by
another participant in that project on or after the tenth day of
March, one thousand nine hundred ninety, the tax credits available
to such successor participant as a result of the transfer shall not
exceed the amount of credits that would have been available to the predecessor participant had the transfer to the successor
participant not occurred: Provided, That if the project plan
provides for annual recalculation of the division of the credit
allowable for each year among the participants in the project in
order to maximize the collective use of such credit by the project
participants, or for any other purpose, then the credit available
to the successor participant as a result of the transfer shall be
limited each year to the amount of credit actually used by the
predecessor participant to offset taxes for the taxable year
immediately preceding the taxable year in which such participant's
obligations or interest in the project, as described in the project
plan certified by the tax commissioner, passed to the successor
(e) Certain terms redefined. -- Notwithstanding the provisions
of subsection (b), section three of this article, or any other
provision of this article, to the contrary, the following terms
have the meanings assigned to them by this section.
(1) Construction contract. -- The term "construction contract"
means any contract for the building, construction, reconstruction
or rehabilitation of, or the installation of any integral
components to, or improvements of, a new or existing business
(2) Excluded property. -- The term "property purchased or
(A) Property owned or leased by the taxpayer and for which the taxpayer was previously allowed tax credit for industrial
expansion, tax credit for industrial revitalization, tax credit for
coal loading facilities or the tax credits allowed by this article.
(B) Property owned or leased by the taxpayer and for which the
seller, lessor, or other transferor, was previously allowed tax
credit for industrial expansion, tax credit for industrial
revitalization, tax credit for coal loading facilities, or the tax
credits allowed by this article.
(C) Repair costs, including materials used in the repair,
unless for federal income tax purposes the cost of the repair must
be capitalized and not expensed.
(E) Property which is primarily used outside this state, with
use being determined based upon the amount of time the property is
actually used both within and without this state.
(G) Natural resources in place purchased or leased prior to
the first day of March, one thousand nine hundred eighty-five, or
purchased or leased after such date pursuant to an option to
purchase or lease such natural resources in place acquired prior to
such date but exercised, in whole or in part, on or after the tenth
day of March, one thousand nine hundred ninety; and natural
resources in place purchased or leased on or after the tenth day of March, one thousand nine hundred ninety, unless pursuant to a
written contract to purchase or lease executed prior to the passage
(H) Property purchased or leased on or after the tenth day of
March, one thousand nine hundred ninety, unless pursuant to a
of this section, the cost or consideration for which cannot be
property is placed in service or use: Provided, That when the
contract of purchase or lease specifies a minimum purchase price or
minimum annual rent the amount thereof shall be used to determine
the qualified investment in such property under section six of this
article if the property otherwise qualifies as property purchased
or leased for business expansion.
(3) New business facility. -- The term "new business facility"
means a business facility which satisfies all the requirements of
subparagraphs (A), (B), (C) and (D) of this paragraph.
a business the net income of which is or would be taxable under
article twenty-one or twenty-four of this chapter. Such facility
shall not be considered a new business facility in the hands of the
taxpayer if the taxpayer's only activity with respect to such
facility is to lease it to another person or persons.
after the first day of March, one thousand nine hundred eighty-five.
(C) The facility was not purchased or leased by the taxpayer
from a related person or a project participant, or related person
of a project participant, in any certified project in which the
taxpayer is a participant. The tax commissioner may waive this
requirement if the facility was acquired from a related party for
its fair market value and the acquisition was not tax motivated.
or prior to the commencement of the term of the lease of such
facility: Provided, That this ninety-day period may be waived by
the tax commissioner if the commissioner determines that persons
employed at the facility may be treated as "new employees" as that
term is defined under paragraph (4) of this subsection.
(A) The term "new employee" means a person residing and
domiciled in this state, hired by the taxpayer to fill a position
or a job in this state which previously did not exist in taxpayer's
business enterprise in this state prior to the date on which the
taxpayer's qualified investment is placed in service or use in this
state. In no case shall the number of new employees directly
attributable to such investment for purposes of this credit exceed
the total net increase in the taxpayer's employment in this state: Provided, That with respect to taxpayers who file application for
certification after the tenth day of March, one thousand nine hundred ninety, the tax commissioner may require that the net
increase in the taxpayer's employment in this state be determined
and certified for the taxpayer's controlled group; and in the case
of a project involving more than one person for the controlled
groups of all participants, taken as a whole: Provided, however,
That persons filling jobs saved as a direct result of taxpayer's
qualified investment in property purchased or leased for business
expansion on or after the tenth day of March, one thousand nine
hundred ninety, may be treated as new employees filling new jobs if
the taxpayer certifies the material facts to the tax commissioner
and the tax commissioner expressly finds that:
(i) But for the new employer purchasing the assets of a
business in bankruptcy under chapter seven or eleven of the United
States bankruptcy code and such new employer making qualified
investment in property purchased or leased for business expansion,
the assets would have been sold by the United States bankruptcy
court in a liquidation sale and the jobs so saved would have been
(ii) But for taxpayer's qualified investment in property
purchased or leased for business expansion in this state, taxpayer
would have closed its business facility in this state and the
employees of the taxpayer located at such facility would have lost
their jobs: Provided, That the tax commissioner shall not make
this certification unless the tax commissioner finds that the
taxpayer is insolvent as defined in 11 U.S.C. §101 (31) or that the taxpayer's business facility was destroyed, in whole or in
significant part, by fire, flood or other act of God.
(B) A person shall be deemed to be a "new employee" only if
such person's duties in connection with the operation of the
business facility are on:
(I) "Full-time employment" means employment for at least one
hundred forty hours per month at a wage not less than the
minimum wage provision is applicable to the business;
(II) "Permanent employment" does not include employment that
is temporary or seasonal and therefore the wages, salaries and
other compensation paid to such temporary or seasonal employees
will not be considered for purposes of sections five and seven of
(ii) A regular, part-time and permanent basis: Provided,
That such person is customarily performing such duties at least
twenty hours per week for at least six months during the taxable
(5) Leased property. -- The term "leased property" does not
include property which the taxpayer is required to show on its
books and records as an asset under generally accepted principles
of financial accounting. If the taxpayer is prohibited from
expensing the lease payments for federal income tax purposes, the
property shall be treated as purchased property under this section if the property was purchased on or after the tenth day of March,
one thousand nine hundred ninety.
(6) Small business. -- The term "small business" means a small
business which has an annual payroll of one million seven hundred
thousand dollars or less, and annual gross receipts of not more
than five million five hundred thousand dollars: Provided, That on
or before the fifteenth of January, one thousand nine hundred
ninety-one, and on or before each fifteenth day of January
thereafter, the tax commissioner shall prescribe amounts which
shall apply in lieu of the above amounts for taxable years
beginning on or after the first day of January of the calendar year
in which determination is made. The prescribed amounts shall be
determined in accordance with section seven-a of this article and
notice thereof shall be filed in the state register. The
requirements for annual payroll and annual gross receipts, once met
by a given taxpayer in that taxable year when qualified investment
is first placed in service or use shall not again be applied to
that same taxpayer in subsequent years to defeat the small business
credit to which the taxpayer gained entitlement in that year. However, the median compensation requirements applicable to any
small business, except a small business entitled to a certified
project credit, shall be determined when qualified investment is
first placed in service or use; and subsequently redetermined
inflation adjusted amounts for median compensation for each year
shall be the requirements applicable to that small business for each year throughout the ten-year credit period and any further
carryover or other extended credit period for the original credit
to which the requirements relate. For purposes of this definition:
(A) Annual payroll. -- The annual payroll of a business shall
include the employees of its domestic and foreign affiliates,
whether employed on a full-time, part-time, temporary, or other
basis, during the preceding twelve months. If a business has not
been in existence for twelve months, the payroll of the business
shall be divided by the number of weeks, including fractions of a
week, that it has been in business, and the result multiplied by
fifty-two. That amount shall then be added to the twelve month
payrolls of its domestic and foreign affiliates to determine the
annual payroll of the business for purposes of this section.
(B) Annual gross receipts. -- The annual gross receipts of a
business shall include the annual gross receipts of its foreign and
domestic affiliates.
(i) The "annual gross receipts" of a business which has been
in business for three or more complete fiscal years means the
annual gross revenues of the business for the last three fiscal
years. For purposes of this definition, the gross revenues of the
business includes revenues from sales of tangible personal property
and services, interest, rents, royalties, fees, commissions and
receipts from any other source, but less returns and allowances,
sales of fixed assets, interaffiliated transactions between a
business and its domestic and foreign affiliates, and taxes collected for remittance to a third party, as shown on its books
(ii) The annual receipts of a business that has been in
business for less than three complete fiscal years means its total
receipts for the period it has been in business, divided by the
number of weeks including fractions of a week that it has been in
business, and multiplied by fifty-two.
(C) Affiliates. -- The term "affiliates" includes all concerns
which are affiliates of each other when either directly or
indirectly: (i) One concern controls or has the power to control
the other; or (ii) a third party or parties controls or has the
power to control both. In determining whether concerns are
independently owned and operated and whether or not affiliation
exists, consideration shall be given to all appropriate factors,
including common ownership, common management and contractual
(D) Concern. -- The term "concern" means any business entity
organized for profit (even if its ownership is in the hands of a
nonprofit entity), having a place of business located in this
state, and which makes a contribution to the economy of this state
through payment of taxes, or the sale or use in this state of
tangible personal property, or the procurement or providing of
services in this state, or the hiring of employees who work in this
state. "Concern" includes, but is not limited to, any person as
defined in paragraph (18), subsection (b), section three of this article.
(1) Application required. -- Notwithstanding any provision of
this article to the contrary, no credit shall be allowed or applied
under this article for any qualified investment property placed in
service or use on or after the first day of January, one thousand
nine hundred ninety, until the person asserting a claim for the
allowance of credit under this article makes written application to
the tax commissioner for allowance of credit as provided in this
subsection and receives written acknowledgment of its receipt from
tax commissioner: Provided, That in the case of a multiparticipant
project this notice may be filed by the managing project
participant on behalf of all participants in that project. An
application for credit shall be filed no later than the last day of
the due date, without extensions, for filing the tax returns
relates is placed in service or use and all information required by
such form shall be provided.
(2) Failure to file. -- The failure to timely apply for the
credit shall result in the forfeiture of fifty percent of the
annual credit allowance otherwise allowable under this article. This penalty shall apply annually until such application is filed.
(1) Except as otherwise expressly provided in this section, the provisions of this section shall apply to property placed in
service or use on or after the tenth day of March, one thousand
nine hundred ninety, notwithstanding any provision of prior law
which may be in conflict with this section. In the case of any
such ambiguity, the provisions of this section shall control
resolution of such ambiguity.
(2) The amendments to this section enacted in the year, one
thousand nine hundred ninety-eight, shall be retroactive, and shall
be effective for tax years beginning on or after the first day of
January, one thousand nine hundred ninety-five.
WVC 11 - 13 C- 15 §11-13C-15. Continuing suspension of new credit entitlements,
exceptions, effective date.
contrary, no entitlement to the business investment and jobs
expansion tax credit under this article shall result from, and no
credit shall be available to any taxpayer for, investment placed in
service or use after the tenth day of April, one thousand nine
hundred ninety-three.
(b) The suspension of new entitlements to credits set forth in
subsection (a) of this section shall not apply to companies,
entities or taxpayers engaged in the following industries or
(1) Manufacturing, including, but not limited to, chemical
processing and chemical manufacturing, manufacture of wood products
and forestry products, manufacture of aluminum, manufacture of
paper, paper processing, recyclable paper processing, food
processing, manufacture of aircraft or aircraft parts, manufacture
of automobiles or automobile parts, and all other manufacturing
activities, but not timbering or timber severance or timber
hauling, or mineral severance, hauling, processing or preparation,
or coal severance, hauling, processing or preparation;
(2) Information processing, including, but not limited to,
telemarketing, information processing, systems engineering,
backoffice operations and software development;
(3) The activity of warehousing, including, but not limitedto, commercial warehousing and the operation of regional
distribution centers by manufacturers, wholesalers or retailers;
(c) Notwithstanding the fact that a company, entity or
taxpayer is engaged in an industry or business activity enumerated
in subsection (b) of this section, such company, entity or taxpayer
must qualify for the business investment and jobs expansion tax
credit by fulfilling the qualified investment, jobs creation and
other credit entitlement requirements of the business investment
and jobs expansion tax credit act in order to obtain entitlement to
any credit under this article. Failure to fulfill the statutory
requirements of the business investment and jobs expansion tax
credit act will result in a partial or complete loss of the tax
-- Notwithstanding any provision herein
contained to the contrary, this section shall not apply to
investments for which applications for credit or applications for
projected certification were filed prior to the tenth day of April,
one thousand nine hundred ninety-three.
WVC 11 - 13 C- 16 §11-13C-16. Termination of credit; effective date.
contrary, no entitlement to any tax credit under this article may
result from, and no credit is available to any taxpayer for,
investment placed in service or use after the thirty-first day of
section, the provisions of sections one through fifteen, of this
article continue to apply to taxpayers that have gained entitlement
to the credit pursuant to the placement of qualified investment
into service or use prior to the first day of January, two thousand
(c) Transition rules. -- The general rule stated in subsection
(a) of this section does not apply:
(1) To qualified investment property placed in service or use
prior to the first day of January, two thousand three.
(2) To property purchased or leased for business expansion
that is placed in service or use on or after the first day of
January, two thousand three, if at least one of the following
clauses applies to the property:
(A) The new or expanded business facility was constructed,
contract executed prior to the first day of January, two thousand
three, as limited to the provisions of the contract as of that date
then binding on the taxpayer, but only to the extent the new or expanded business facility is placed in service or use prior to the
first day of January, two thousand four;
(B) The new or expanded business facility is part of a project
described in subdivision (1), subsection (a), section four-b of
this article, for which the multiple year project investment period
had commenced, but had not yet closed on or before the first day of
January, two thousand three, and the new or expanded business
facility constitutes or includes property placed in service or use
prior to closure of the multiple year project investment period
allowed for the project that is:
(i) Property constructed for a multiple year project certified
before the first day of January, two thousand three, in accordance
with section four-b of this article: Provided, That only that
portion of the contract price attributable to that percentage of
the construction contract completed prior to the last day of the
multiple year project investment period (determined under
principles set forth in Section 460(b) of the Internal Revenue Code
of 1986, as in effect before the first day of January, two thousand
three), which is placed in service or use prior to the last day of
the multiple year project investment period allowed pursuant to
subdivision (1), subsection (a), section four-b of this article,
may be treated as property purchased for business expansion under
section six of this article;
(ii) A new or expanded business facility purchased or leased
for a multiple year project certified before the first day of January, two thousand three, in accordance with section four-b of
(iii) Machinery or equipment or other tangible personal
property purchased or leased for a multiple year project certified
with section four-b of this article.
For purposes of this paragraph, the multiple year project
investment period will be treated as having commenced if the
taxpayer has placed the qualified investment into service or use in
accordance with section four of this article. A multiple year
project period will not be treated as having commenced merely as a
result of the issuance of certification of a project under section
four-b of this article. No entitlement to any tax credit under
this paragraph may result from, and no credit is available to any
taxpayer for, investment placed in service or use after closure of
the multiple year project investment period for which certification
(C) The new or expanded business facility was purchased or
leased pursuant to a written contract executed prior to the first
day of January, two thousand three, as limited to the provisions
then binding on the taxpayer as of that date, but only to the
extent the new or expanded business facility is placed in service
or use prior to the first day of January, two thousand four; or
(D) The machinery or equipment or other tangible personal
property purchased or leased for business expansion at a new or expanded business facility was purchased or leased by the taxpayer
tangible personal property executed before the first day of
January, two thousand three, as limited to the provisions of the
written contract then binding on the taxpayer, but only to the
extent the tangible personal property purchased or leased under the
contract is placed in service or use before the first day of
January, two thousand four.
(d) Notice of election required. -- Any person intending to
claim credit under one or more of the transition rules provided in
subsection (c) of this section shall file written notice of his or
her intention with the tax commissioner on or before the
thirty-first day of December, two thousand two. In the case of a
multiparticipant project, this notice may be filed by the managing
project participant on behalf of all participants in the project. Notice is to be in a form prescribed by the tax commissioner and
all information required by the form is to be provided.
(e) Failure to file notice. -- If any person fails to timely
file the notice required by subsection (d) of this section, that
person is precluded from claiming credit under this article for
investment property placed in service or use after the thirty-first
day of December, two thousand two, and may claim credit under
article thirteen-q of this chapter to the extent credit is
allowable under that article. For purposes of this section,
notice, in proper and complete form, timely filed under section twenty-one, article thirteen-q of this chapter, fulfills the filing
requirement of this section if that filing addresses the same
qualified investment for which notice would be required under this