West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-13C - Business Investment And Jobs Expansion Tax Credit, Corporation Headquarters Relocation Tax Credit, Sma › Section 110-13C-7 - New jobs percentage

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. 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.
7.2. Applicable
				percentage. - For the purpose of Section 7.1 of these regulations, the
				applicable new jobs percentage shall be determined under the following table:
IF THE NUMBER OF THE APPLICABLE
NEW JOBS IS:
PERCENTAGE IS:
1,000
90
760
80
520
70
280
60
50
50
7.3.
				When a job is attributable. - An employee's position is directly attributable
				to the qualified investment if:
7.3.1. the
				employee's service is performed or his base of operations is at the new or
				expanded business facility;
7.3.2.
				the position did not exist prior to the construction, renovation, expansion or
				acquisition of the business facility and the making of the qualified
				investment, or will qualify as a saved job under W. Va. Code '11-13C-14(e)(4);
				and
7.3.3. but for the qualified
				investment, the position would not have existed.
7.3.4. Where under a collective bargaining
				seniority system, new jobs at a new facility are actually filled by persons who
				have been employees of the taxpayer for some time and where the newly hired
				employees will back-fill the jobs vacated by such long-time employees, the
				positions created by the new investment will constitute new jobs for purposes
				of the business investment and jobs expansion tax credit, notwithstanding the
				fact that they are filled by employees who have been employed by the taxpayer
				in other positions for some time prior to the placement of the investment into
				service or use.
For purposes of making the payroll factor calculations
				  required under W. Va. Code ''11-13C-4b and 11-13C-5, the payroll of new
				  employees and "wages, salaries and other compensation paid during the taxable
				  year to all employees of the taxpayer in this State, whose positions are
				  directly attributable to the qualified investment" relating to such seniority
				  system filled jobs will be the payroll of employees filling the new positions,
				  not payroll of new hires employed to back-fill the existing positions.
7.3.5. The individuals holding new
				jobs can be replaced by other individuals, and the job title applicable to
				those jobs can be changed, and it is even possible that certain job positions
				may evolve into other functional positions involving new or different
				operational duties. However, it is necessary that the fifty (50) or more jobs
				created during the period between the applicable statutory dates be identified
				and continue in a manner traceable to their original creation. Only those jobs
				will county toward the determination of the amount of credit available.
For determining new jobs filled by new employees and for
				  determining whether a job is attributable to qualified investment, it is
				  irrelevant that job titles or job functions may change or that jobs are filled
				  by individuals different from those originally holding the positions.
Factors which indicate that a job is directly attributable to
				  qualified investment include, but are not limited to: the fact that a job is at
				  or in a new business facility constituting qualified investment, that a job
				  entails operation, maintenance, management or support of machinery or equipment
				  which constitutes qualified investment, that a job did not exist prior to the
				  placement of investment in service or use at a new or expanded business
				  facility and that a job is an integral part of the business operation of a new
				  business facility or of the expanded business operations of an expanded
				  business facility.
7.3.5.1. If a
				project participant ended employment contracts with a participant which was a
				contract employer and replaced that contract employment with its own or some
				other participant's newly hired employees, the loss of the contract jobs from
				the project would not county as lost jobs if those jobs were then filled by new
				hires employed by any other participant in the project. The number of jobs
				attributable to the project investment would be unchanged. It would be
				irrelevant that the project participant employing the persons filling the jobs
				had changed.
However, if a contractor providing jobs to the project were
				  eliminated, and the jobs formerly performed by the contract employees were
				  performed by employees who were already holding project jobs, then the total
				  number of jobs attributable to project investment would decrease, and the jobs
				  lost would be counted as such in making the new jobs determination for purposes
				  of calculating the credit and for calculating the payroll factor for jobs
				  attributable to qualified investment.
7.3.5.2. Construction worker jobs held during
				the construction of a facility or start-up management or start-up consulting
				jobs which are temporary or not permanent jobs resulting from the placement of
				qualified investment into service or use cannot qualify as new jobs even though
				such jobs may last for a substantial period of time, even a period of
				years.