W. Va. Code R. § 110-13M-7

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

Section 110-13M-7 - Credit Recapture for Improperly Claiming the Credit or for Excessive Jobs Loss

7.1. If an eligible taxpayer permanently or indefinitely ceases operation of its new consumer-ready wood product line or manufacturing facility, the credit is subject to recapture because the number of individuals employed in full-time jobs by the employer will have decreased by more than ten percent (10%). W. Va. Code '11-13M-9.

7.2. When the eligible taxpayer is a partnership, limited liability company or S corporation, the recapture tax shall be paid by the partners, members or shareholders in the same proportion that they claimed the credit during the tax year in which recapture occurs, but any recapture tax liability not satisfied by one or more partners, members or shareholders becomes the joint and several liability of them all.

7.3. Penalties and additions to tax caused by a decrease of more than ten percent (10%) in the number of individuals employed in full-time positions may be waived by the Tax Commissioner, in whole or in part, at the discretion of the Tax Commissioner, only when the taxpayer demonstrates that the decrease is due to reasonable cause.

7.3.1. Reasonable cause includes loss of new jobs as a result of fire, flood, storm or other casualty; theft or embezzlement; an economic recession or depression which adversely decreases the demand for new consumer-ready wood products; or any other cause approved by the Tax Commissioner.

7.4. Reasonable cause does not include loss of new jobs as a result of transferring jobs to another kind of manufacturing facility or another product line or to another location outside this State.

W. Va. Code R. § 110-13M-7