W. Va. Code R. § 110-13X-7

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

Section 110-13X-7 - Uses of credit; transferability

7.1. The tax credit may be applied to reduce taxes imposed by articles twenty-four (corporate net income tax) and twenty-one (personal income tax) of Chapter 11 of the West Virginia Code in the tax year the investment is placed in service after approval of the project by the Department of Economic Development (with potential carry forward for an additional 2 years). The credit may be taken into account in computing estimated payments.

7.2. The tax credit is to first be taken against corporate net income taxes imposed by article twenty-four for the taxable year, determined before application of allowable credits against tax.

7.3 If the eligible taxpayer is an electing small business corporation (as defined in Section 1361 of the United States Internal Revenue Code of 1986, as amended), a partnership, a limited liability company that is treated as a partnership for federal income tax purposes or a sole proprietorship, then any unused credit is allowed as a credit against the personal income taxes imposed by article twenty-one or on income of a personal income tax payer against tax attributable to income directly derived from the qualified project, or in the case of owners, partners, members or interest holders that are C corporations, then any unused credit is allowed as a credit against the corporation net income tax against tax attributable to conduit income directly derived from the qualified project.

7.4. Electing small business corporations, limited liability companies, partnerships and other unincorporated organizations shall allocate the credit allowed by this article among its members in the same manner as profits and losses are allocated for the taxable year.

7.5. After approval by the Department of Economic Development of any transfer, sale or assignment of the tax credit, pursuant to W. Va. Code § 11-13X-1, et seq., the transferee shall acquire the amount of credit that remains available under that section. The transferor and the transferee or transferees may apply the credit against tax in the year of the transfer, and succeeding years in accordance with the amount of credit to which each is entitled, but the dollar amount of credit available to each shall not be exceeded or duplicated.

7.6. All requests for transfer, sale, or assignment of tax credits must include the original approved tax credit identification number; state the timeline as to the number of years of tax credit being transferred; and, clearly identify the tax credit's termination date.

W. Va. Code R. § 110-13X-7