Current through Register Vol. XLI, No. 50, December 13, 2024
Section 117-5-6 - Restrictions on Investment6.1. Alter Ego. -- No qualified investment may be made in a qualified research and development company that is the alter ego of the eligible taxpayer.6.2. Time Requirement for Investment. 6.2.a. The eligible taxpayer shall maintain its qualified investment for a minimum period of five years.6.2.b. An eligible taxpayer that receives repayment or return of a qualified investment (exclusive of interest, dividends, or other earnings on the investment) shall within three calendar months from the date of repayment or return of its investment, reinvest the repaid or returned amount of the initial investment in another qualified research and development company for a period of time at least equal to the remainder of the initial five-year term.6.2.c. An eligible taxpayer that fails to maintain a qualified investment for the required five-year minimum period shall pay to the Tax Commissioner a penalty equal to all of the tax credits asserted under the Statute by the eligible taxpayer with interest, calculated at the rate set forth in W. Va. Code § 11-10-17a, from the date the tax credits were certified as allocated to the eligible taxpayer. The Tax Commissioner shall give notice to the eligible taxpayer of any imposed penalties. The penalty shall be assessed and collected in the same manner as tax. The Tax Commissioner shall deposit any amounts received as a result of a penalty in the general revenue fund.6.3. Amount that Qualified Research and Development Company May Accept. -- 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.