Current through Register Vol. XLI, No. 50, December 13, 2024
Section 117-5-3 - Overview of the Tax Credits3.1. Purpose. -- The Statute creates a tax credit program through which investors receive a tax credit by making equity investments in start-up, growth-oriented, research and development businesses in West Virginia.3.2. Tax Credit Allowed. -- The tax credits are available to eligible taxpayers who invest in a qualified research and development company that maintains its corporate headquarters in West Virginia for the taxable year in which the investment was made. Eligible taxpayers may claim the tax credit against that portion of their Business Franchise Tax, Corporation Net Income Tax and Personal Income Tax for tax years beginning on or after July 1, 2005. 3.2.a. No more than one million dollars of the tax credits allowed under W. Va. Code § 11-13U-4(a) may be allocated by the Authority during any fiscal year. The Authority shall allocate the tax credits in the order the applications are received, as discussed in subsection 4.5 of this Rule.3.2.b. The Authority may not allocate more than fifty thousand dollars of this tax credit to an eligible taxpayer in a fiscal year.3.2.c. Any unused portion of the tax credit may be carried forward to succeeding taxable years until the expiration of the fourth taxable year after the taxable year in which the investment was made. The tax credit remaining thereafter is forfeited.3.3. Termination of the Tax Credit. 3.3.a. The tax credit terminates July 1, 2008, unless sooner terminated by law.3.3.b. Absent statutory directive to the contrary, taxpayers who have gained entitlement to the tax credit pursuant to a qualified investment made prior to the termination date shall retain that entitlement and apply the tax credit in due course pursuant to the requirements and limitations of the Statute.3.4. Amount of Tax Credit. 3.4.a. The total tax credit that may be allocated to an eligible taxpayer under the Statute shall be equal to fifty percent of the total value of the qualified investment in the taxable year the qualified investment was actually made.3.4.b. The total amount of tax credit that may be used in any taxable year by any eligible taxpayer in combination with the owners of the eligible taxpayer may not exceed fifty thousand dollars.3.4.c. The total amount of qualified investment that a qualified research and development company may accept from all eligible taxpayers in any taxable year is one million dollars.