W. Va. Code R. § 110-13DD-6

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-13DD-6 - Limitations on Tax Credit

6.1. Beginning in the year in which the farm-to-food bank tax credit is claimed, the following rules shall apply:

6.1.a. The farming taxpayer shall use the credit to offset its payment of or liability for either Personal Income Tax or Corporate Net Income Tax for the tax year during which the eligible, certified donation was made.

6.1.b. If any credit remains after application during the first year, the remaining credit may be carried over for each of the next four tax years unless it is sooner used.

6.1.c. The credit is not refundable, it may not be carried back to prior tax years and it may not be transferred.

6.1.d. Electing small business corporations, limited liability companies, partnerships and other unincorporated organizations shall allocate the credit allowed by W. Va. Code § 11-13DD-1, et seq. among its members in the same manner as profits and losses are allocated in the taxable year.

6.1.e. If a small business corporation, limited liability company, partnership or other unincorporated organization claims the credit, the cap established by W. Va. Code § 11-13DD-3 shall apply at the entity level, and each individual taxpayer claiming the credit must claim it in the manner described in subdivision 6.1.d.

6.2. Forfeiture of Credit. The farm-to-food bank tax credit shall be forfeited by the farming taxpayer in the following circumstances:

6.2.a. If the farming taxpayer becomes no longer subject to the taxing authority of the State of West Virginia. This includes, but is not limited to, a change in the tax attributes of the taxpayer, such as, for example, changing from an S corporation to a C corporation.

6.2.b. If the credit is not depleted in the first tax year and carry-over credit is not completely used during the subsequent four tax years.

6.2.c. If the Tax Commissioner receives notification from the Department of Agriculture that the certification was issued in error, including errors stemming from the limitations imposed by W. Va. Code § 11-13DD-3. A tax liability may result for any tax year in which the credit has been claimed if this occurs.

6.2.d. If the Tax Commissioner becomes aware that the limitations imposed by W. Va. Code §§ 11-13DD-3(b) or (d) have been exceeded. A tax liability may result for any tax year in which the credits claimed exceed the limitations specified in W. Va. Code § 11-13DD-3.

W. Va. Code R. § 110-13DD-6