W. Va. Code R. § 110-13M-2

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

Section 110-13M-2 - Definitions

The following terms defined in W. Va. Code '11-13M-2 are explained, illustrated or clarified by the subsections immediately below them:

2.1. "Affiliate" means and includes all persons, as defined in this section, which are affiliates of each other, when either directly or indirectly:

(A) One person controls or has the power to control the other, or

(B) A third party or third parties control or have the power to control two persons, the two thus being affiliates. In determining whether concerns are independently owned and operated and whether or not an affiliation exists, consideration shall be given to all appropriate factors, including common ownership, common management and contractual relationships.

2.1.1. The term "affiliate" includes a member of an affiliated group.

2.2. "Consumer-ready wood products" means value-added wood products that are ready for sale to consumers at the end of the manufacturing process. Consumer-ready wood includes any value-added wood product that does not require further manufacturing before it may ordinarily be used or consumed by the purchaser of the product, except that consumer-ready wood product does not include any product that is not manufactured primarily from wood, any product that is not commercially marketed as a wood product for sale primarily to consumers of the product, or paper or paper products.

2.2.1 Consumer-ready wood products are considered to be manufactured if they are produced by employees in a factory on an assembly line basis, as opposed to craftsmen or artisans who only make customized and/or unique wood products. The manufacturing process does not begin until after wood arrives at the factory for conversion into a wood product ready to be used or consumed by a purchaser of the product.

2.2.2. Consumer-ready wood products are considered to be manufactured primarily from wood if more than half of the final product consists of wood and if the cost of the wood constitutes more than half of the cost of all materials included in the final product.

2.2.3. Consumer-ready wood products are considered ready for sale to consumers even though the products are sold to wholesalers or retailers for resale, and even though the ultimate consumer may be required to assemble them or would normally be expected to put finishing touches on them after purchase.

2.2.4. For example, consumer-ready wood products include, but are not limited to, gates, split rails and posts used for fencing. Even if the consumer assembles, installs and paints these products, no further manufacturing occurs. Similarly, manufacture of lumber would be considered a consumer-ready wood product unless sold to a manufacturer for further manufacturing.

2.3. "Corporation" includes any corporation, a joint-stock company and any association or other organization which is classified as a corporation under federal income tax law.

2.3.1. The term "corporation" includes a limited liability company if it is taxable as a corporation under federal income tax law.

2.4. "Full-time employee" means a permanent hourly employee of an eligible taxpayer, who is a West Virginia domiciled resident, and works in a new consumer-ready wood product manufacturing facility in this State, or in a new consumer-ready wood product line of an existing manufacturing facility in this State, more than eighteen hundred hours during the entire twelve-month period ending on the last day of the taxable year of the eligible employer, whether these hours are hours worked at the manufacturing facility, or include hours of employer paid vacation leave or other employer paid leave. Full-time employee does not include an employee who is a part-time, seasonal or temporary employee.

2.4.1. No combination of part-time, seasonal or temporary employees may be considered equivalent to a full-time employee.

2.4.2. No person who is not an employee (such as an independent contractor) may be considered a full-time employee.

2.4.3. An employee who moves to West Virginia in order to become a West Virginia domiciled resident in order to fill a new job may be counted as a full-time employee if he or she otherwise qualifies as a full-time employee.

2.5. "New job" means a job at a new consumer-ready wood product manufacturing facility located in this state, or at a new consumer-ready wood product line at an existing manufacturing facility located in this state, which did not exist in this state with any employer as of the first day of the second calendar month preceding the calendar month in which the new consumer-ready wood product manufacturing facility begins to manufacture consumer-ready wood products, or in which the new consumer-ready wood product line begins to manufacture consumer-ready wood products in an existing manufacturing facility located in this state, that is filled by a full-time employee of the eligible taxpayer.

2.5.1. If both consumer-ready and non-consumer-ready wood products are manufactured by a taxpayer, the number of new jobs to be used for calculating the credit shall be limited to the new jobs attributable to the consumer-ready wood products.

2.5.2. If a type of wood product is sold ready for use by consumers, and is also sold to manufacturers for use in the manufacture of consumer-ready wood products, the wood product is a consumer-ready wood product only if commercially marketed as a wood product for sale primarily to consumers. If the wood product is primarily marketed to consumers, all of the jobs created at the manufacturing facility shall be considered new jobs for purposes of computing the credit. Otherwise, the number of new jobs to be used for calculating the credit shall be limited to the new jobs attributable to the sales to consumers, including sales to wholesalers and retailers for resale to consumers.

2.5.2.1. For example, if a new manufacturing facility manufactures 2x4 lumber which it sells in equal dollar amounts to consumers and to manufacturers, only half of the jobs created at the facility would be counted as new jobs when computing the credit.

2.6. "Partnership" means and 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, which is classified as a partnership for federal income tax purposes for the taxable year.

2.6.1. The term "partnership" may include a limited liability company if it is not taxable as a corporation under federal income tax law.

2.7. "Tax year or taxable year" means the tax year of the taxpayer for federal income tax purposes.

2.7.1. The term "tax year" includes a short tax year by an eligible taxpayer during its first year of operation.

W. Va. Code R. § 110-13M-2