W. Va. Code R. § 110-13Q-8

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

Section 110-13Q-8 - General Procedure and Administration

8.1. Requirements to Claim the Tax Credit. -- To claim a tax credit, the eligible taxpayer shall comply with W. Va. Code § 11-13AA-1, et seq. and this rule and shall timely provide complete and accurate forms, returns, schedules and other information required by the Tax Commissioner.

8.2. Applicability of Various Tax Laws. -- Application of this credit and eligibility for this credit shall not abrogate application of the provisions of W. Va. Code § 11-23-1, et seq. (Business Franchise Tax), W. Va. Code § 11-24-1, et seq. (Corporation Net Income Tax) and W. Va. Code § 11-21-1, et seq. (Personal Income Tax), and rules issued pursuant to those statutes, with respect to any eligible taxpayer or owner of any eligible taxpayer to the extent that they may be subject to the provisions of those laws, and shall not abrogate application of the provisions of W. Va. Code § 11-10-1, et seq. (Procedure and Administration) which provides for administration of those taxes.

8.3. Maintenance of Records. -- An eligible company shall maintain the records required to verify the validity of its eligibility for the tax credit and the accuracy of the amount of the tax credit claimed. Failure to do so may result in denial of the tax credit. Specifically, a person who claims any credit under this rule shall maintain sufficient records to establish the following facts about the patent for which a credit is allowed:

8.3.a. For credit accrued under Subsection 3.1 of this rule:

8.3.a.1. The patent number and title;

8.3.a.2. The amount of royalties, license fees or other consideration received for use of the patent;

8.3.a.3. The month and taxable year in which the agreement required under Subsection 3.1 of this rule was entered into;

8.3.a.4. The month and taxable year in which the patent was first used, placed in service or directly used in a manufacturing process or product in this State;

8.3.a.5. The amount of credit taken;

8.3.a.6. The date the patent was disposed of or otherwise ceased to be used in a manufacturing process or product in this State;

8.3.a.7. The direct cost for developing the patent; and

8.3.a.8. The direct cost for developing the patent in this State.

8.3.b. For credit accrued under Subsection 3.2 of this rule:

8.3.b.1. The patent number and title;

8.3.b.2. The amount of royalties, license fees or other consideration received for use of the patent;

8.3.b.3. The month and taxable year in which the agreement required under Subsection 3.1 of this rule was entered into;

8.3.b.4. The month and taxable year in which the patent was first used, placed in service or directly used in a manufacturing process or product in this State;

8.3.b.5. The amount of credit taken;

8.3.b.6. The date the patent was disposed of or otherwise ceased to be used in a manufacturing process or product in this State;

8.3.b.7. Each and every item of depreciable property purchased for purposes of claiming the enhanced credit;

8.3.b.8. The date the depreciable property was purchased, its cost and its estimated useful life determined using strait-line method of depreciation;

8.3.b.9. The date the depreciable property was placed in service or used in the person's business activity in this State; and

8.3.b.10. The date the depreciable property was taken out of service or use in the person's business activity in this State and the reason why the property was taken out of service or use.

8.3.c. For credit accrued under Subsection 3.3 of this rule:

8.3.c.1. The patent number and title;

8.3.c.2. The amount of net profit attributable to the patent along with all information used to derive this figure in accordance with Section 5 of this rule;

8.3.c.3. The month and taxable year in which the agreement required under Subsection 3.1 of this rule was entered into;

8.3.c.4. The month and taxable year in which the patent was first used, placed in service or directly used in a manufacturing process or product in this State;

8.3.c.5. The amount of credit taken; and

8.3.c.6. The date the patent was disposed of or otherwise ceased to be used in a manufacturing process or product in this State.

8.3.d. For credit accrued under Section 3.4 of this rule:

8.3.d.1. The patent number and title;

8.3.d.2. The amount of net profit attributable to the patent along with all information used to derive this figure in accordance with Section 5 of this rule;

8.3.d.3. The month and taxable year in which the agreement required under Subsection 3.1 of this rule was entered into;

8.3.d.4. The month and taxable year in which the patent was first used, placed in service or directly used in a manufacturing process or product in this State;

8.3.d.5. The amount of credit taken;

8.3.d.6. The date the patent was disposed of or otherwise ceased to be used in a manufacturing process or product in this State;

8.3.d.7. Each and every item of depreciable property purchased for purposes of claiming the enhanced credit;

8.3.d.8. The date the depreciable property was purchased, its cost and its estimated useful life determined using strait-line method of depreciation;

8.3.d.9. The date the depreciable property was placed in service or used in the person's business activity in this State; and

8.3.d.10. The date the depreciable property was taken out of service or use in the person's business activity in this State and the reason why the property was taken out of service or use.

W. Va. Code R. § 110-13Q-8