W. Va. Code R. § 145-7-10
Current through Register Vol. XLI, No. 50, December 13, 2024
Section 145-7-10 - Tax Credit Allowed10.1. Who May Claim Credit. Eligible taxpayers that make eligible contributions pursuant to a certified project plan may receive a tax credit.10.2. Amount of credit allowed. The amount of credit allowed is fifty percent of the taxpayers' eligible contribution. The minimum eligible contribution of a taxpayer shall be five hundred dollars ($500.00). No contribution of cash, property or professional services or any combination thereof contributed in any tax year by any taxpayer having a fair market value of less than five hundred dollars qualifies as an eligible contribution. The maximum eligible contribution by a taxpayer shall be two hundred thousand dollars ($200,000.00). No contribution of cash, property or professional services or any combination thereof contributed in any tax year by any taxpayer having a fair market value in excess of two hundred thousand dollars qualifies as an eligible contribution. 10.2.1. Not more than twenty-five percent of total eligible contributions to a certified project may be in-kind contributions of professional services. Not more than twenty-five percent of total eligible contributions made by any taxpayer to any certified project may be in-kind contributions of professional services.10.2.2. No tax credit shall be given prior to the making of an eligible contribution.10.3. Tax credits are allowable only for the tax year of the eligible taxpayer in which the eligible contribution is irrevocably transferred to the project transferee, and for the next succeeding four years. 10.4. No tax credit shall be given for any contribution which, if the credit was allowed, the allowance would cause the amount of tax credit generated by the certified project to exceed the maximum amount of tax credit for which the project was certified.10.5. Application of Tax Credit. The amount of credit allowable under this program must be taken within a five-year period beginning with the tax year in which the taxpayer irrevocably transfers its eligible contribution to the project plan transferee. The total credit any eligible taxpayer can claim shall not exceed $100,000 in any tax year of the eligible taxpayer. 10.6. Claiming of Credit on Tax Returns. If the eligible taxpayer is a sole proprietorship, the credit allowed is applied to reduce the sole proprietor's personal income tax liability by up to fifty percent for the tax year. The application of remaining credit will be as follows: 10.6.1. If the eligible taxpayer is a C corporation, the remaining credit may be applied to reduce its corporation net income tax liability by up to fifty percent and is determined before application of other allowable credits against this tax.10.6.2. If the eligible taxpayer is an electing small business corporation (S corporation) or a partnership for federal income tax purposes, any unused credit may be applied by the shareholders of the S corporation, the partners in the partnership, or members of the limited liability company treated as a partnership, to reduce their liability for West Virginia personal income taxes by up to fifty percent. S corporations, partnerships and other unincorporated organizations may allocate the remaining credit among its shareholders, partners or members in the same manner as profits and losses are allocated for the tax year. Any taxpayer subject to the personal income tax under Chapter 11, Article 21 of the West Virginia Code, who makes an eligible contribution to a qualified charitable organization, and receives back from that organization a properly completed Neighborhood Investment Program voucher, is eligible to claim the credit. The credit shall be allowed against the personal income tax liability imposed under Chapter 11, Article 21 of the West Virginia Code without regard to the source of that income, whether it is from wages, passive investment income, income from a trade or business or any other source.10.7. Forfeiture of Unused Credit. Credits not used in the year the taxpayer irrevocably transfers its eligible contribution to the project transferee or the succeeding four years may not be carried forward and therefore are forfeited. Credits may not be carried back to a tax year prior to the tax year in which the eligible contribution was made. 10.8. Publication of Who Takes Tax Credit. Annually, the tax commissioner shall publish in the State Register the name of every taxpayer claiming a neighborhood assistance credit on a tax return, as well as the amount of credit asserted by each taxpayer. The confidentiality provisions of W. Va. Code §§ 11-1-4a, 11-10-5d or any other section do not apply to this information. W. Va. Code R. § 145-7-10