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-8 - Computing Electing Pass-Through Entity Tax

Current through Register Vol. XLI, No. 28, July 12, 2024
8.1. An electing PTE calculates its West
				Virginia income tax by multiplying its West Virginia taxable income by a tax
				rate equal to the top marginal personal income tax rate on
				individuals.
8.2. Economic
				development tax credits and other credits allowed by law to be passed through
				to the owners of a pass-through entity may be applied against the electing PTE
				tax. These credits include, but are not limited to:
Economic Opportunity Tax Credit (W.Va. Code
				  §11-13Q-1
et
				  seq.
);
High Technology Manufacturers Credit (W.Va. Code
				  §11-13Q-10a);
Jobs Creation Tax Credit (W.Va. Code §11-13Q-22);
Small Business Property Tax Adjustment Tax Credit (a
				  refundable credit) (W.Va. Code §11-13MM-5);
Downstream Natural Gas Manufacturing Investment Tax Credit
				  (W. Va. Code §11-13GG-1
et
				  seq.
);
Natural Gas Liquids Property Tax Adjustment Credit (W. Va.
				  Code §11-13HH-1
et
				  seq
.);
Post-Coal Mine Site Business Credit (W. Va. Code
				  §11-28-1
et
				  seq.
);
Environmental Agricultural Equipment Credit (W. Va. Code
				  §11-13K-1
et
				  seq
.);
Military Incentive Credit (Formerly Veterans Employment
				  Credit) (W. Va. Code §11-21-42);
High-Wage Growth Business Tax Credit (W. Va. Code
				  §11-13II-1
et
				  seq.
)
;
Neighborhood Investment Program Credit (W. Va. Code
				  §11-13J-1
et
				  seq.
);
Historic Rehabilitated Buildings Investment Credit (W. Va.
				  Code §11-21-8a);
Credit For Qualified Rehabilitated Residential Building
				  Investment (W. Va. Code §11-21-8a);
Apprenticeship Training Tax Credit (W. Va. Code
				  §11-13W-1
et
				  seq.
);
West Virginia Farm To-Food Bank Tax Credit (W. Va. Code
				  §11-13DD-1
et
				  seq.
);
Tax Credit For Donation Or Sale Of Vehicle (W. Va. Code
				  §11-13FF-1
et
				  seq.
);
Professional Services Destination Facility Tax Credit (part
				  of the Tourism Development Tax Credit) (W. Va. Code §5B-2e-1
et
				  seq.
);
Small Arms and Ammunition Manufacturing Facility Tax Credit
				  For Federal Excise Tax Paid (W. Va. Code §11-13KK-1
et
				  seq.
);
High-Wage Growth Business Tax Credit (a refundable credit)
				  (W. Va. Code §11-13II-1
et
				  seq
.); and
The West Virginia Film Industry Investment Act Credit (W. Va.
				  Code §11-13X-1
et
				  seq.
);
8.3.
				Treatment of the federal 26
				U.S.C. §199A deduction -- The federal
				income tax deduction allowable under
				26 U.S.C.
				§199A is not an allowable adjustment in
				determining the tax liability of an electing PTE. The federal
				26 U.S.C.
				§199A deduction is a "below the line"
				federal income tax deduction. It does not reduce a Taxpayer's federal adjusted
				gross income. The deduction is taken after federal adjusted gross income is
				determined.
8.4. Treatment of
				depletion allowance -- The electing PTE may take a
proforma
depletion allowance in the amount allowable under
				26 U.S.C.
				§611
et seq.,
to be
				deducted by the electing PTE in determining West Virginia taxable income of the
				electing PTE at the entity level.