reglab/statecodes huggingface dataset:
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21B - Citizen Tax Credit for Property Taxes Paid › Section 110-21B-3 - Citizen Tax Credit

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. A low
				income taxpayer who under the authority of W. Va. Code §11-6B-1 et seq., is allowed a
				homestead exemption from ad valorem tax shall be allowed a credit against West
				Virginia personal income tax in an amount equal to the ad valorem property
				taxes paid by that person on up to the first $20,000 of taxable assessed value
				of the homestead.
3.1.1. The credit commences
				for ad valorem taxes paid for property tax years that begin on or after January
				1, 2003.
3.1.2. The credit may only
				be claimed by a taxpayer that qualifies under subsection 3.1 of this rule and
				only on the annual personal income tax return filed by that taxpayer.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21B - Citizen Tax Credit for Property Taxes Paid › Section 110-21B-4 - Qualification for Homestead Exemption

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. The determination as to whether a
				property owner qualifies for the homestead exemption shall be made by the
				assessor of the county in which the property owner resides. When an owner is
				qualified, the homestead exemption attaches to the homestead occupied by the
				qualified owner.
4.2. If the
				property owner qualifies for the homestead exemption, the assessor shall enter
				the following information about the qualifying property into the System
4.2.1. The name and address of the
				owner;
4.2.2. The county identifier
				for the county in which the property is located;
4.2.3. The tax district identifier for the
				tax district in which the property is located;
4.2.4. The map number where the property may
				be found;
4.2.5. The parcel number
				for the property;
4.2.6. The
				assessed value of the property after application of the homestead exemption;
				and
4.2.7. The gross property tax
				on the property after application of the homestead exemption.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21B - Citizen Tax Credit for Property Taxes Paid › Section 110-21B-5 - Determination of Eligibility

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1. The
				Commissioner shall, using the information entered into the System by the
				assessor, annually determine the taxpayers that have qualified for the
				homestead exemption.
5.1.1. The Commissioner
				shall also determine the amount of the tax credit available to the respective
				taxpayers. The amount of the tax credit shall be based upon the information in
				the System.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21B - Citizen Tax Credit for Property Taxes Paid › Section 110-21B-6 - Notice of Eligibility, Forms and Instructions

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. The Commissioner shall annually issue a
				taxpayer specific notice only to (1) those eligible taxpayers who claimed the
				credit in the prior tax year, (2) those taxpayers who are newly eligible for
				the tax credit as determined by the Tax Commissioner, and (3) by request of a
				taxpayer who reasonably believes he or she is eligible and will file for the
				tax credit.
6.2. The notice shall
				state the amount of credit that, based upon the information applicable to a
				given tax year in the System, may be available to the taxpayer.
6.3. The Department shall prepare appropriate
				forms and instructions to be used for calculating the actual amount of credit
				claimed by the taxpayer.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21B - Citizen Tax Credit for Property Taxes Paid › Section 110-21B-7 - Calculation of Credit

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. The
				definition of "taxes paid" requires that the amount subject to the credit be
				determined after application of any discount for early payment but before
				application of any penalty or interest for late payment.
7.1.1. W. Va. Code §11A-1-3 authorizes the payment of
				ad valorem taxes in two installments. The first installment is payable on or
				before September 1st and becomes delinquent on
				October 1st. The second installment is payable on or
				before the succeeding March 1st and becomes
				delinquent April 1st.
7.1.2. Taxes paid on or before the date they
				are payable are subject to a 2 ½% discount. Delinquent taxes are subject
				to accrued interest at the rate of 9% per year, and the accrued interest is
				added to the delinquent taxes until the taxes plus interest are paid.
7.1.3. "Taxes paid" therefore is the amount
				remaining either after the tax amount due is reduced by the application of the
				discount or before the tax amount due is increased by the addition of any
				interest or penalties.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21B - Citizen Tax Credit for Property Taxes Paid › Appendix - Appendix

Current through Register Vol. XLI, No. 28, July 12, 2024
Example 1.
The credit available (when the taxpayer pays the property tax
				  liability after the date for eligibility to receive a 2 ½ % discount)
				  for eligible property with an assessed value of $30,000 is calculated as
				  follows.
Assessed value of eligible property as found on
							 county property book.
$30,000
Homestead Exemption
20,000
Taxable assed value
10,000
Average tax rate (varies by county)
.0123
Property tax due the county sheriff
$ 123.00*
Tax credit available to eligible owner
$ 123.00
*paid after discount period expires
Example 2.
The credit available (when the taxpayer pays the property tax
				  liability on or before the date for eligibility to receive a 2 ½%
				  discount) for eligible property with an assessed value of $25,000 is calculated
				  as follows.
Assessed value of eligible property as found on
							 county land book
$25,000
Homestead Exemption
20,000
Taxable assessed value
5,000
Average tax rate (varies by county)
.0123
Property tax due the county sheriff
$ 59.96*
Tax credit available to eligible owner
$ 59.96
*paid before discount expires
Example 3.
The credit available for eligible property with an assessed
				  value of $19,000 is calculated as follows.
Assessed value of eligible property as found on
							 county land book
$19,000
Homestead Exemption
20,000
Taxable assessed value
0
Property taxes due the county sheriff
0
Tax credit available
0
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21C - Method of Claiming the Qualified Rehabilitated Buildings Investment Credit › Section 110-21C-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. - This
				rule provides the method of reporting the alternative method for distribution
				of qualified rehabilitated buildings investment credit that is required by W.
				Va. Code §
									11-21-8e(b);
				the method to sell, assign or transfer the credit pursuant to W. Va. Code
				§§
									11-21-8h
				or
				11-24-23g,
				and requirements to claim the credit once transferred; the method to show good
				standing with the State Tax Division and local, municipal and county taxing
				authorities as required by W. Va. Code §§
									11-21-8a
				and
				11-24-23a;
				and limitations on claiming the credit, including those set forth by House Bill
				203, passed October 17, 2017.
1.2.
				Authority. - W. Va. Code §§
									11-21-8a(a),
				11-21-8e(b),
				11-21-8h(e),
				and
				11-24-23a(a).
1.3. Filing Date. - November 30,
				2018
1.4. Effective Date. -
				December 31, 2018
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21C - Method of Claiming the Qualified Rehabilitated Buildings Investment Credit › Section 110-21C-3 - Methods for Certain Entities to Distribute Credit

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. S corporations, partnerships, limited
				liability companies and other unincorporated groups such as multiple owners of
				property which would otherwise be eligible for the credit are not directly
				subject to income tax and thus are not able to claim the credit because they
				have no income tax against which to apply the credit. However, their
				shareholders, partners, members, and owners who are subject to income tax may
				be able to apply the credit to their income tax liability.
3.2. Unless an S corporation, partnership,
				limited liability company or other unincorporated group not subject to income
				tax elects the alternative distribution method set forth in subsection 3.3 of
				this rule, it shall allocate the qualified rehabilitated buildings investment
				credit allowed under W. Va. Code §§
									11-21-8a
				or
				11-24-23a
				by using the pro rata method.
3.2.a. Under the
				pro rata method, the credit shall be allocated to the shareholders, members,
				partners or owners, as the case may be, either in proportion to their ownership
				interest in the S corporation, partnership, limited liability company or other
				unincorporated group, or using the same ratio used to divide profits and losses
				of the group.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21C - Method of Claiming the Qualified Rehabilitated Buildings Investment Credit › Section 110-21C-4 - Sale, Assignment or Other Transfer of Credit

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. Pursuant to W. Va. Code §
									11-24-23g,
				a Corporation Net Income Tax taxpayer granted credit pursuant to W. Va. Code
				§
									11-24-23a
				may sell, assign or otherwise transfer some or all of its credit to another
				taxpayer, which may apply that credit to its Corporation Net Income Tax
				liability even though it would not be eligible for the credit pursuant to W.
				Va. Code §
									11-24-23a.
4.1.a. Corporation Net Income Tax taxpayers
				not eligible for credit to be granted to them pursuant to W. Va. Code §
										11-24-23a
				may not sell, assign or transfer any credit sold, assigned or transferred to
				them.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21C - Method of Claiming the Qualified Rehabilitated Buildings Investment Credit › Section 110-21C-5 - Method to demonstrate good standing with state, local, municipal and county taxing authorities

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1.
				Demonstration of good standing during the application process. - When
				requesting certification for the credits that are granted pursuant to W. Va.
				Code §§
									11-21-8a
				and
				11-24-23a,
				the taxpayer must include documentation demonstrating the taxpayer's good
				standing in the following manner.
5.1.a. The
				documentation of good standing shall be submitted with the Request for
				Certification to the State Historic Preservation Office and must address the
				time period between the initial application for the Qualified Rehabilitated
				Building Credit through the end of the tax period immediately prior to the date
				of the Request for Certification. Prior tax arrearages and delinquencies must
				have been resolved prior to the time the documentation of good standing is
				issued.
5.1.b. The Request for
				Certification will not be complete without the documentation of good
				standing.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21C - Method of Claiming the Qualified Rehabilitated Buildings Investment Credit › Section 110-21C-6 - Limitations on claiming the credit

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. The credits granted pursuant to W. Va.
				Code §§
									11-21-8a
				or
				11-24-23a
				for qualified investment made after December 31, 2017, may not be used to
				offset tax liabilities arising prior to January 1, 2020. This prohibition does
				not apply to the credits granted pursuant to W. Va. Code §
									11-21-8g.
6.2. No credit is allowed for qualified
				investments made after December 31, 2022, unless the Legislature of West
				Virginia amends W. Va. Code §§
									11-21-8a
				and
				11-24-23a
				to change the December 31, 2022 termination date.
6.3. In cases where qualified investment is
				made before January 1, 2023, and the investment is approved for credit pursuant
				to W. Va. Code §§
									11-21-8a
				or
				11-24-23a
				prior to January 1, 2023, the unused portion of the credit may be carried
				forward for ten (10) years until it has been exhausted. However, this
				limitation date does not apply to the credit granted pursuant to W. Va. Code
				§
									11-21-8g.
6.4. In accordance with the provisions of W.
				Va. Code §
									11-24-23a,
				as amended in 2017, the aggregate value of credits authorized by the State
				Historic Preservation Officer pursuant to W. Va. Code §§
									11-21-8a
				and
				11-24-23a
				may not exceed $30 million per fiscal year. Further, no more than $10 million
				may be allocated to any single certified rehabilitation granted pursuant to W.
				Va. Code §§
									11-21-8a
				or
				11-24-23a.
				At least $5 million of the $30 million annual credits that may be granted
				pursuant to W. Va. Code §§
									11-21-8a
				and
				11-24-23a
				must be set aside each year for small qualified rehabilitation projects that
				are eligible for a credit, not to exceed $500,000 for each
				allocation.
6.5. The State Historic
				Preservation Office must approve all Qualified Rehabilitated Buildings
				Investment Tax Credits, as provided for in W. Va. Code §§
									11-24-23a
				and
				11-21-8g.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. -- This
				rule is promulgated to provide for the general administration of the
				Residential Solar Energy Tax Credit, W. Va. Code §
									11-13Z-1, et
				seq.
1.2. Authority. -- W. Va. Code
				§§
									11-13Z-1, et
				seq. and 11-10-5.
1.3. Filing Date.
				-- May 6, 2010.
1.4. Effective
				Date. -- May 11, 2010.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-3 - Overview of the Credit

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1.
				Beginning July 2, 2009, each eligible taxpayer may annually take a tax credit
				against the tax imposed in W. Va. Code §
									11-21-1, et
				seq. for the purchase, installation and placing into service of a solar energy
				system on property located in this state and owned by the taxpayer and used as
				a residence after July 1, 2009.
3.1.a. A
				solar energy system is not eligible for purposes of the tax credit until it is
				placed in service.
3.1.b. If a
				taxpayer has paid for a solar energy system, but it is not yet placed into
				service for use during the tax year, no credit is allowed until the year in
				which the system is placed in service.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-4 - Requirements for Tax Credit; Application for Tax Credit

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. In order for any taxpayer to take a
				credit under W. Va. Code §
									11-13Z-1, et
				seq., the taxpayer shall comply with the following requirements:
4.1.a. Have a personal income tax liability
				in West Virginia;
4.1.b. Have
				purchased and installed a new operating solar energy system that conforms to
				all applicable state and local codes, and manufacturer specifications;
4.1.b.1. The purchaser of the solar energy
				system must have an undivided interest in the solar energy system that has been
				installed;
4.1.b.2. The solar
				energy system must have been placed into service after July 1, 2009;
4.1.c. Own the property located in
				West Virginia, used as a residence after July 1, 2009, and served by the solar
				energy system purchased and installed by the taxpayer; and
4.1.d. Apply to the West Virginia Tax
				Department for the credit on forms and in the manner the Tax Department may
				prescribe.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-5 - Eligible Devices

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1. To
				qualify for the solar energy system tax credit, a solar energy system shall:
5.1.a. Be a new and complete system. The
				system must be able to collect, store, convert, monitor, and distribute energy
				to the residence it serves;
5.1.b.
				Be installed in the immediate vicinity of the residence served so that the
				solar energy is delivered directly to the residence; and
5.1.c. Be either a photovoltaic system, a
				solar domestic hot water system or an active solar space heating system.
5.1.c.1. For photovoltaic systems, the system
				must be able to generate electricity directly from sunlight and provide
				electricity for the home. These systems can either be "stand alone" systems
				that use batteries for storage of electricity or "grid interconnected" systems
				that allow the electric meter to spin backwards during periods where the
				photovoltaic system is generating more electricity than the load of the
				house.
5.1.c.2. For solar domestic
				hot water systems, the system must consist of solar collectors, a pump, a heat
				exchanger, and storage tanks designed to heat water.
5.1.c.3. For solar space heating systems, the
				system must consist of solar collectors, a pump, a heat exchanger, storage
				tanks, and a method of distributing the heat to areas of the house that need
				heat.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-6 - Component and Installation Certification

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. A contractor, duly licensed by and in
				good standing with the West Virginia Contractors Licensing Board, shall install
				all solar energy systems.
6.2. A
				tax credit shall not be allowed for solar energy systems, unless the system
				complies with the following:
6.2.a. Solar
				thermal systems -- all installations of solar thermal systems must meet or
				exceed the 2003 edition, International Building Code, Sixth Printing, the 2005
				edition, National Electric Code, any codes adopted by the county and
				municipality in which the system is located, and manufacturer
				specifications;
6.2.b. All solar
				water heating systems must be OG-300 certified by the Solar Rating and
				Certification Corporation (SCRR). All solar collectors which make up the solar
				water heating system must be OG-100 certified by the SCRR. All Energy Star7
				solar water heaters qualify for the tax credit; or
6.2.c. Solar photovoltaic systems -- all
				installations of solar photovoltaic systems must meet or exceed the 2003
				edition, International Building Code, Sixth Printing, the 2005 edition,
				National Electric Code, any codes adopted by the county and municipality in
				which the system is located, and manufacturer specifications.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-7 - Documentation

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. The taxpayer
				shall maintain documentation to substantiate that the system meets the required
				criteria and to substantiate the cost of the system. The credit may be denied
				upon failure to provide sufficient documentation.
7.2. A taxpayer is not required to attach a
				SCRR certification to the return on which the credit is claimed, but should
				maintain it to document eligibility of the solar energy system for the
				credit.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-8 - General Procedure and Administration

Current through Register Vol. XLI, No. 28, July 12, 2024
8.1. To claim this credit, a taxpayer shall
				comply with the provisions of W. Va. Code §
									11-13Z-1 et seq.
				and this rule, and shall timely provide complete and accurate forms, schedules
				and other information required by the Tax Commissioner.
8.2. When applying for this credit, a
				taxpayer is also subject to the provisions of W. Va. Code §
									11-21-1 et
				seq. (Personal Income Tax) and rules issued pursuant to those statutes, as well
				as to the provisions of W. Va. Code §
									11-10-1 et
				seq. (Procedure and Administration) which provide for administration of those
				taxes.
8.3. The credit may be
				claimed only by one taxpayer for a given period of time. However, a husband and
				wife who file separate returns for a taxable year in which they could have
				filed a joint return may each claim only one-half of the tax credit that would
				have been allowed for a joint return, if the provisions of this rule are
				met.
8.4. The Tax Commissioner may
				disqualify in whole or in part any expenditure from eligibility for the tax
				credit if it appears that the economic substance of an expenditure or
				transaction constitutes self dealing or is an expenditure or investment
				primarily directed to or received by the purchaser, or by a related person
				related to the purchaser.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-9 - Carryover Credit; Carryback Prohibited; Non-Refundable; Forfeiture

Current through Register Vol. XLI, No. 28, July 12, 2024
9.1. If the amount
				of the tax credit allowed under W. Va. Code §
									11-13Z-1, et
				seq. in any taxable year exceeds the taxpayer's liability imposed under W. Va.
				Code §
									11-21-1, et
				seq. for that taxable year, the excess may be carried over and applied as a
				credit against the tax liability of the taxpayer pursuant to the provisions of
				W. Va. Code §
									11-21-1, et
				seq. for succeeding taxable years, until the amount of the excess tax credit is
				used.
9.2. No carryback to a prior
				taxable year is allowed for the amount of any unused portion of any annual
				credit allowance.
9.3. Application
				of the credit allowed under W. Va. Code §
									11-13Z-1 et seq.
				in combination with all other applicable tax credits, exemptions and deductions
				shall in no event reduce the tax liability below zero, and shall in no
				circumstances be applied as a refundable tax credit, or result in a refundable
				tax credit.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-10 - Sale, Assignment or Other Transfer of Credit

Current through Register Vol. XLI, No. 28, July 12, 2024
10.1. Taxpayers eligible for credit under W.
				Va. Code §
									11-13Z-1 et seq.
				may not sell, assign or transfer their credit to another taxpayer.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21D - Residential Solar Energy Tax Credit › Section 110-21D-11 - Burden of Proof

Current through Register Vol. XLI, No. 28, July 12, 2024
11.1. The
				burden of proving eligibility for a credit and the amount of the credit rests
				upon the taxpayer, and a credit may not be allowed to a taxpayer that fails to
				maintain adequate records or to make them available for inspection.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1.
Scope
. -- This interpretive rule sets forth the State Tax
				Commissioner's interpretation of W. Va. Code §
									11-13EE-1,
et seq
., originally enacted in Enrolled H.B. 3144 (2019),
				amended by Enrolled H. B. 4439 (2020), and amended further by Enrolled S. B.
				718 (2021). W. Va. Code §
									11-13EE-1,
et seq
. provides a coal severance tax rebate when a taxpayer's
				qualified capital investment results in taxpayer's increased coal production
				and an increase in the taxpayer's workforce.
1.2.
Authority
. -- W. Va.
				Code §§
									11-13EE-14 and
				11-10-5.
1.3.
Filing Date
. -- May 2,
				2022.
1.4.
Effective
				Date
. -- June 2, 2022.
1.5.
Applicability
. -- The
				coal severance tax rebate is available to eligible taxpayers that make a
				qualified capital investment in a new or existing mine, which is placed in
				service or use in this state on or after July 1, 2019, and that results in an
				increase in coal production and in the taxpayer's workforce, in accordance with
				S.B.18 passed during the 2021 General Legislative Session. S.B.718 superseded
				the provisions of H.B. 3144 passed during the 2019 General Legislative Session
				and the provisions of H.B. 4439 passed during the 2020 General Legislative
				Session. The qualified investment may be in the form of new machinery or
				equipment, repairs or refurbishment of machinery or equipment that is
				capitalized for federal income tax purposes, or infrastructure improvements to
				real property.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-2 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1.
General Rule
. -- Unless a specific definition is provided in
				subsection 2.2 of this section, or the context in which the term is used
				clearly requires a different meaning, the terms used in this rule have the
				definitions provided under W. Va. Code §§
									11-13EE-1,
et seq
.; 11-10-1,
et seq
.; 11-13A-1,
et seq
.; 11-21-1,
et seq
.; and 11-24-1,
et seq
.
2.2.
Terms defined
.
2.2.1. "Base
				period" means the five-year period directly preceding the year the qualifying
				capital investment in new machinery and equipment was placed into service.
See
W.Va. Code §
										11-13EE-2(b)(2).
2.2.1.a. When a business has not been in
				business for five years, but has been in business for at least two years, the
				base period is the most recent tax year prior to making the
				investment.
2.2.1.b. "Base period"
				applies to every threshold to rebate eligibility, including severance tax paid,
				tons mined, and employment levels.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-6 - Determining the qualified investment

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. In order to be eligible for the coal
				severance tax rebate, a qualified investment must be made that results in
				increased production of coal and increased workforce.
6.2. The capital investment must be in new
				machinery or new equipment, repairs or refurbishment of machinery or equipment
				that his capitalized for federal income tax purposes, or infrastructure
				improvements to real property. A qualified investment must be in tangible
				personal property and can only be made in one of the following, although
				multiple qualified investments can be made at the same mine. This list is
				inclusive.
6.2.1. New machinery used directly
				in the production of coal that is depreciable, or amortizable, for federal
				income tax purposes and has a useful life for federal income tax purposes of
				five or more years when it is placed in service or use in this state;
				or
6.2.2. Refurbished or rebuilt
				machinery or equipment used directly in the production of coal that is
				depreciable, or amortizable, for federal income tax purposes and has a useful
				life for federal income tax purposes of five or more years when it is placed in
				service or use in this state; or
6.2.3. Improvements to real property used
				directly in the production of coal that is depreciable, or amortizable, for
				federal income tax purposes and has a useful life for federal income tax
				purposes of five or more years when it is placed in service or use in this
				state.
6.2.4. Repair or
				refurbishment costs to tangible personal property directly used in the
				production of coal that are incurred on or after July 1, 2019, which are
				capitalized for federal income tax purposes.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-8 - Records Required for capital investment property

Current through Register Vol. XLI, No. 28, July 12, 2024
8.1.
Records required
. --
				Every taxpayer who claims a rebate pursuant to W. Va. Code §
									11-13EE-1,
et seq
., and this rule shall maintain adequate records
				establishing the following facts for each item of qualified investment
				property:
8.1.1. The property's
				identity;
8.1.2. The property's
				actual cost, or reasonably determined cost in the absence of actual
				cost;
8.1.3. Whether the machinery
				or equipment are new or refurbished property as defined in subsection 2.2.23 of
				this rule;
8.1.4. The property's
				useful life for federal income tax purposes;
8.1.5. The month and taxable year in which
				the property was placed in service or use;
8.1.6. The amount of rebate claimed;
				and
8.1.7. The date the property
				was disposed of, or otherwise ceased to be used at the mine or coal preparation
				and processing plant at which it was first placed in service or use.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-9 - Transfer of qualified investment property to successors

Current through Register Vol. XLI, No. 28, July 12, 2024
9.1.
Mere change in form of
				business
. -- Qualified investment property may not be treated as
				disposed of under W. Va. Code §
									11-13EE-9
				by reason of a mere change in the form of conducting the business as long as
				the qualified investment property is retained in the successor business at the
				coal mining operation at which it was first placed in service or use and used
				to qualify for the rebate under W. Va. Code §
									11-13EE-1
,
				et. seq
., and the transferor business retains a controlling interest
				in the successor business. In this event, the successor business is allowed to
				claim the remaining amount of rebate still available with respect to the
				qualified investment property transferred, and the transferor business may not
				be required to redetermine the amount of rebate allowed in earlier
				years.
9.2.
Transfer or
				sale to successor
. -- Qualified investment property is not treated as
				disposed of under W. Va. Code §
									11-13EE-11
				by reason of any transfer or sale to a successor business provided the
				successor business continues to operate the qualified investment property at
				the mine or coal preparation and processing facility in this state at which the
				qualified investment property was first placed in service or use. Upon transfer
				or sale, the successor shall acquire the amount of rebate, if any, that remains
				available under W. Va. Code §
									11-13EE-1,
et seq
., and the transferor business is not required to
				redetermine the amount of rebate allowed in earlier years.
9.3.
Reporting transaction
.
				-- When there is a change in the form of the business, or there is a transfer
				of the business to a successor, the business that claimed the rebate must
				notify the Tax Commissioner of the change in the form of the business, or the
				transfer of the business to a successor, within 30 calendar days after the
				transfer or change in form and provide the information required by the Tax
				Commissioner regarding the event.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-10 - Rebate carry back, carry forward, and transfer

Current through Register Vol. XLI, No. 28, July 12, 2024
10.1. No rebate allowable under W. Va. Code
				§
									11-13EE-1,
et seq
. for qualified investment property placed in service or
				use may be carried back to a taxable year before the taxable year in which the
				qualified investment property is placed in service or use; unused severance tax
				rebate may only be carried forward.
10.2. When the amount of rebate allowable
				exceeds 80 percent of the state portion of the additional severance tax payable
				on the increased production at the mine where the qualified investment is
				placed in service or use during the taxable year for which the application for
				rebate is submitted, then the unused portion of the rebate amount may be
				claimed as rebate in subsequent taxable years by filing a claim for unused
				rebate with the Tax Commissioner no later than the due date of the annual
				severance tax return for the carried forward taxable year, determined with
				regard to any authorized extension of time for filing the annual return. Under
				no circumstances can the unused rebate be claimed after the expiration of the
				tenth consecutive tax year after the qualified investment giving rise to the
				rebate is placed in service or use.
10.3. The allowable rebate can only be used
				to recover the state portion of severance tax payable attributable to coal
				produced at the coal mining operation at which the qualified investment
				property was first placed in service or use. The amount of severance tax
				subject to the remainder rebate each year is determined by comparing (1) the
				amount of the state portion of severance tax payable for the taxable year in
				which rebate carry forward is sought (before credits such as the credit for
				payment of the minimum severance tax) on the increase in coal production at the
				mine where the qualified investment was placed in service or use, with (2) the
				amount of the state portion of severance tax imposed by W. Va. Code §
									11-13A-3(a)
				paid during for the base production period, as established in accordance with
				the provisions of W. Va. Code §
									11-13EE-3 and
				section heading 3 of this rule.
10.3.1. The
				rebate amount carried forward can only be applied against 80 percent of the
				state portion of the increased severance tax payable for the taxable year to
				which the rebate amount is carried forward that is attributable to the
				qualified investment property.
10.3.2. Any rebate remaining after the tenth
				consecutive year following the taxable year in which the qualified investment
				property is placed in service or use is forfeited.
10.3.3. The amount of rebate carried forward
				may be paid only when coal production at the mine in the carry forward year
				continues to be greater than the base production amount.
10.3.4. Under no circumstances may the rebate
				be treated as refundable credit.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-11 - Suspension of payment of rebate

Current through Register Vol. XLI, No. 28, July 12, 2024
11.1. No rebate may be paid under W. Va. Code
				§
									11-13EE-1,
et seq
., when the taxpayer, or any member of the taxpayer's
				controlled or affiliated group is delinquent in the payment of severance taxes
				imposed pursuant to W. Va. Code §§
									11-12B-3
				or
				11-13A-3,
				or any local, state, or federal tax or fee, until such time as the delinquency
				is cured. This includes, but is not limited to:
11.1.1. West Virginia minimum severance tax
				on coal imposed pursuant to W. Va. Code §
										11-12B-1,
et seq
.
11.1.2.
				West Virginia severance taxes imposed pursuant to W. Va. Code §
										11-13A-1,
et seq
.
11.1.3.
				West Virginia employer withholding taxes imposed pursuant to W. Va. Code §
										11-21-1,
et seq
.
11.1.4.
				West Virginia consumers sales and service tax imposed pursuant to W. Va. Code
				§
										11-15-1,
et seq
., use taxes imposed pursuant to W. Va. Code §
										11-15A-1,
et seq
., and municipal sales and use tax administered,
				collected and enforced by the Tax Commissioner.
11.1.5. West Virginia income taxes imposed
				pursuant to W. Va. Code §
										11-21-1,
et seq
., or § 11-24-1,
et seq
.
11.1.6. Any other tax imposed pursuant to
				chapter 11 of the West Virginia Code.
11.1.7. West Virginia unemployment taxes
				imposed pursuant to W. Va. Code §
										21A-1-1,
et seq
.
11.1.8. Ad
				valorem property taxes levied on the real or tangible personal property of the
				eligible taxpayer and members of the taxpayer's affiliated or controlled group,
				if applicable.
11.1.9. The special
				reclamation tax imposed pursuant to W. Va. Code §
										22-3-11.
11.1.10. The special tax on coal imposed
				pursuant to W. Va. Code §
										22-3-32
				and §22-3-32a.
11.1.11. Any
				fees imposed by the Secretary of the West Virginia Department of Environmental
				Protection, or any agency thereof.
11.1.12. Federal taxes including, but not
				limited to, federal income taxes, employer withholding taxes, social security
				taxes and federal excise taxes on coal.
11.1.13. Federal reclamation fee.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-12 - Forfeiture of coal severance tax rebate

Current through Register Vol. XLI, No. 28, July 12, 2024
12.1. The failure to timely apply for the
				rebate results in the forfeiture of 25 percent of the rebate amount otherwise
				allowable under W. Va. Code §
									11-13EE-1,
et seq
. This 25 percent forfeiture penalty applies each year
				until the properly completed application for rebate is filed with the State Tax
				Commissioner.
12.2. Exceptions to
				forfeiture are set forth below.
12.2.1. The
				qualified investment property may not be treated as disposed of under W. Va.
				Code §
										11-13EE-9
				by reason of a mere change in the form of conducting the business, as long as
				the qualified investment property continues to be used at the coal mining
				operation at which it was originally placed in service or use by the transferor
				business in this state, and the transferor business retains a controlling
				interest in the successor business. In order to avoid forfeiture, the successor
				business must continue to operate the same qualified investment property at the
				coal mining operation in this state at which the qualified investment property
				was first placed in service or use subject to the requirements in W. Va. Code
				§
										11-13EE-1,
et seq
., and this rule regarding use and duration.
12.2.1.a. Under the scenario described above,
				the successor business can claim the rebate amount of credit still available
				with respect to the qualified investment property that was
				transferred.
12.2.1.b. Under the
				scenario described above, the transferor business is not required to
				redetermine the amount of rebate allowed in earlier years.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-13 - Recapture of rebate; recapture tax imposed

Current through Register Vol. XLI, No. 28, July 12, 2024
13.1.
When recapture tax
				applies
. --
13.1.1. Any person who
				places qualified investment property in service or use for purposes of this
				rebate and who fails to use the qualified investment property or any portion
				thereof for at least five years in the production of coal in this state at the
				coal mining operation where it was placed in service or use shall pay the
				recapture tax imposed by W. Va. Code §
										11-13EE-11(b).
				No temporary downtime can exceed 30 consecutive days.
13.1.2. This section does not apply when
				section heading 9 of this rule, relating to transfer of qualified investment
				property, applies. However, the successor(s) may be subject to a recapture tax
				in the event they prematurely dispose of the qualified investment property or
				any portion thereof.
13.1.3. When
				the severance tax return filed by the taxpayer, or taxpayer's controlled or
				affiliated group, as applicable, is audited and the amount of severance tax
				rebate allowable is redetermined, resulting in less rebate being allowable,
				then if the rebate amount has already been paid by the Tax Commissioner, the
				recapture tax will be assessed to recover the amount of rebate that was
				erroneously paid.
13.1.4. When the
				taxpayer's books and records, or the books and records of taxpayer's controlled
				or affiliated group, as applicable, are audited and the amount of severance tax
				rebate allowable is redetermined, resulting in less rebate being allowable,
				then if the rebate amount has already been paid by the Tax Commissioner, the
				recapture tax will be assessed to recover the amount of rebate that was
				erroneously paid.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21G - Income Tax Paid At The Entity Level By Electing Pass-Through Entities › Section 110-21G-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. -- This
				rule provides requirements, procedures and limitations for filing and payment
				of income tax by electing pass-through entities and assertion of credits and
				deductions in accordance with W. Va. Code §11-21-3a.
1.2. Authority. -- W. Va. Code
				§11-21-3a(p).
1.3. Filing date. -- April 30,
				2024.
1.4. Effective date. -- April
				30, 2024.
1.5. Sunset Provision. --
				This rule shall terminate and have no further force or effect after August 1,
				2029.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21G - Income Tax Paid At The Entity Level By Electing Pass-Through Entities › Section 110-21G-2 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1. General Rule.
				-- Unless a specific definition is provided elsewhere in this rule, or the
				context in which the term is used clearly requires a different meaning, the
				terms used in this rule have the definitions provided under W. Va. Code
				§§11-10-1
et seq
.,
				11-21-1
et seq
., and 11-24-1
et
				seq
.
2.2. Terms defined.
2.2.1. The definitions set forth in W.Va.
				Code §11-21-3a are incorporated here by
				reference.
2.2.2. "Owners of
				qualifying pass-through entity" or "owners" means the partners of a partnership
				or other pass-through entity, or shareholders of an S-corporation.
2.2.3. "Partners" means a person that holds
				an interest directly or indirectly in a partnership or other pass-through
				entity. For the purposes of this rule, "person" includes, but is not limited
				to, any individual, firm, partnership, limited partnership, co-partnership,
				limited liability company, other pass-through entity, joint venture,
				association, corporation, municipal corporation, organization, receiver,
				estate, trust, guardian, executor, administrator, and any other group or
				combination acting as a unit.
2.2.4. "Reconciliation tax credit" means a
				credit that owners of an electing pass-through entity may take against their
				West Virginia personal income tax liability for income taxes paid by the
				electing pass-through entity.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21G - Income Tax Paid At The Entity Level By Electing Pass-Through Entities › Section 110-21G-3 - Introduction

Current through Register Vol. XLI, No. 28, July 12, 2024
W. Va. Code §11-21-3a authorizes an electing
				  pass-through entity ("electing PTE") to make an annual election to pay an
				  elective income tax at the entity level, at a rate equal to the top marginal
				  personal income tax rate on individuals. A nonrefundable income tax credit,
				  subject to a 5-year carryforward, is authorized for owners of the electing PTE
				  for West Virginia income tax paid by the electing PTE. The electing PTE tax is
				  payable in addition to any other taxes imposed on the entity, including sales
				  and use taxes, withholding taxes with respect to employees, property tax, and
				  other local or municipal taxes.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21G - Income Tax Paid At The Entity Level By Electing Pass-Through Entities › Section 110-21G-4 - Owner's Reconciliation Tax Credit for Tax Paid at the Entity Level

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. Owner's
				reconciliation tax credit -- Subject to the requirements and limitations of W.
				Va. Code §11-21-3a the owner of
				an electing PTE may apply a reconciliation tax credit
against the
				owner's personal income tax liability under W. Va. Code §11-21-1 et seq., in the amount of
				the owner's proportionate share of the tax paid under W. Va. Code
				§11-21-1 et seq., by the electing
				PTE for the taxable year.
4.1.1. An
				owner of an electing PTE may claim a reconciliation tax credit against the
				owner's West Virginia individual income tax or fiduciary income tax.
4.1.2. A trust (other than a trust that is
				disregarded for income tax purposes) that is an owner of an electing Subchapter
				S corporation may claim the reconciliation tax credit that it receives on its
				fiduciary income tax return or distribute any portion of the reconciliation tax
				credit to its beneficiaries as may be appropriate: Provided, That no credit may
				be claimed by both a trust and a beneficiary of the trust.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21G - Income Tax Paid At The Entity Level By Electing Pass-Through Entities › Section 110-21G-5 - Making the Election

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1. A
				pass-through entity has the option to make the election to pay West Virginia
				income tax directly under W. Va. Code §11-21-3a for the taxable year. The
				election can be made as follows:
5.1.1. For
				Taxable Years 2023 and after, by timely filing a form, as directed by the Tax
				Commissioner, for electing to pay the tax at an entity level.
5.1.2. An electing PTE must also file a form
				for quarterly estimated payments of tax for the taxable year and submit timely
				quarterly estimated payments of tax due with that form.
5.1.3. If, as a result of a federal
				partnership audit, a partnership elects to be taxed at the entity level for
				federal tax purposes, that federal election will also act as an election to be
				taxed at the entity level for West Virginia state income tax
				purposes.