W. Va. Code R. § 110-21-42

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

Section 110-21-42 - Veterans Incentive Tax Credit

42.1. General. - Certain employers may be entitled to a credit against their personal income tax liability for the employment of economically disadvantaged Vietnam era and Korean conflict veterans, and disabled veterans generally, as provided under W. Va. Code '21A-2C-1 et seq.

42.2. Tax Credit, Eligibility, Amount.

42.2.1. Each person or partnership which employs an economically disadvantaged Vietnam era or Korean conflict veteran, or a disabled veteran, for a continuous period of one (1) year, except as otherwise provided under W. Va. Code '21A-2C-5 and Subsection 42.3 of this regulation, will be entitled to an appropriate tax credit for such veteran so employed which credit shall be applied against the employer's personal income tax liability. This tax credit is nonassignable and may not exceed an employer's total personal income tax liability.

42.2.2. The amount of the tax credit allowed under Subsection 42.2.1 shall be an amount equal to the following and shall be computed in accordance with such forms and instructions as the Tax Commissioner may prescribe.

42.2.2.1. For each economically disadvantaged Vietnam era veteran or Korean conflict veteran, as those terms are defined under W. Va. Code '21A-2C-3, who is employed as provided under Subsection 42.2.1, the amount of the tax credit against personal income tax liability allowed shall be thirty percent (30%) of the employee's wage base. For purposes of this regulation, the employee's wage base is the first (1st) two thousand dollars ($2,000) in wages or compensation actually paid to the employee by the employer.

42.2.2.1.a. The maximum credit for each "disadvantaged" veteran under Subsection 42.2.2.1 above is limited to the smallest of the percentage calculation or six hundred dollars ($600).

42.2.2.2. For each disabled veteran as defined under W. Va. Code '21A-2C-3 who is employed as provided under Subsection 42.2.1, the amount of the tax credit against personal income tax liability shall be a percentage equal to the percentage of disability suffered by the veteran multiplied by the employee's wage base. For purposes of this regulation, the employee's wage base is the first (1st) two thousand dollars ($2,000) in wages or compensation actually paid to the employee by the employer and the percentage of disability is the percentage of compensation for service-connected disability as defined by the Veterans Administration of the United States.

42.2.2.2.a. The maximum credit for each "disabled" veteran under Subsection 42.2.2.2 above is limited to the smallest of the percentage calculation or two thousand dollars ($2,000).

42.3. Restrictions And Limitations Regarding Tax Credit.

42.3.1. An employer may not claim a credit against personal income tax for any veteran employed for less than a continuous period of one (1) year unless the veteran voluntarily leaves employment with the employer, the veteran becomes totally disabled and unable to continue his employment, or the veteran is terminated for good cause shown.

42.3.2. In the event that the veteran is employed for less than a one(1)-continuous-year period due to any circumstance enumerated in Subsection 43.3.1, the employer shall be entitled to a partial tax credit in a proportional amount corresponding to the ratio of the time period during which the veteran was actually employed to the one(1)-year period required for a full tax credit multiplied by the amount of the full tax credit which would have accrued to the employer had the veteran's employment continued for a full year.

42.3.3. An employer may not claim credit against personal income tax for any veteran who is employed and displaces a person already employed. In addition, no such credit may be claimed for the employment of any veteran for whom the employer is receiving job training payments from either the federal or state government. Nothing, however, prohibits an employer from receiving tax credits from both the federal and state governments under similar targeted jobs programs if the employer is otherwise qualified to receive both.

42.4. Employer Certification.

42.4.1. Each year, the Commissioner of the West Virginia Department of Employment Security must certify to the Tax Commissioner a list of employers who may be qualified to receive a Veterans Incentive Tax Credit. Any employer not properly certified by the Department of Employment Security will not be entitled to claim the tax credit set forth under W. Va. Code '11-21-42 and this regulation.

42.4.2. Where an employer has been certified and desires to claim the Veterans Incentive Tax Credit he must complete the appropriate schedule for credit computation, as prescribed by the Tax Commissioner, and he must attach the completed schedule to his West Virginia Personal Income Tax Return for the taxable year for which the credit is claimed.

W. Va. Code R. § 110-21-42