West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-13C - Business Investment And Jobs Expansion Tax Credit, Corporation Headquarters Relocation Tax Credit, Sma
Section 110-13C-4 - Amount of credit allowed - when investment is placed in service -time period over which investment can be placed in service

Universal Citation: 110 WV Code of State Rules 110-13C-4

Current through Register Vol. XLI, No. 38, September 20, 2024

4.1. Amount of credit. - The amount of credit allowable is determined by multiplying the amount of the taxpayer's "qualified investment" (determined under W. Va. Code '11-13C-4a or 6, or both and these regulations) in "property purchased or leased for business expansion" (as defined in W. Va. Code '11-13C-3 and 14 and these regulations) by the taxpayer's new jobs percentage (determined under W. Va. Code '11-13C-7, 4a or 7a and these regulations). The product of this calculation establishes the maximum amount of credit allowable under W. Va. Code '11-13C et seq., due to the qualified investment.

4.2. Application of credit over ten years. - The amount of credit allowable must be taken over a ten (10) year period, with certain extensions of this period for carryover rebate credit, credit arising from non-quantifiable investment and multiple year project credit, at the rate of one-tenth (1/10th) of the amount thereof per taxable year (except that rebate credit is not limited by this one-tenth requirement), beginning with the taxable year in which the taxpayer places the qualified investment in service or use in this State, unless the taxpayer elected to delay the beginning of the ten (10) year period until the next succeeding taxable year, except that project credit for a project available under W. Va. Code '11-13C-4b(e)(2) shall begin to be taken in the year specified therein. This election shall, for all credit taken under W. Va. Code '11-13C et seq., except the small business credit under Section 7a thereof, be made in the annual income tax return filed for the taxable year in which credit is first taken on the qualified investment placed into service or use by the taxpayer. Once made, the election cannot be revoked. The annual credit allowance shall be taken in the manner prescribed in W. Va. Code '11-13C et seq.. For credit taken under W. Va. Code '11-13C-7a, the election to delay the beginning of the ten (10) year period shall be made in the annual income tax return filed for the taxable year in which qualified investment is first placed in service or use.

4.2.1. For a nonproject business investment and jobs expansion tax credit, the entity making the actual investment is the entity which is entitled to take the credit. The credit cannot be shared among, or assigned to, other entities. Also, the entity making the investment and taking the credit must also be the entity which is the employer of the persons holding new jobs attributable to investment.

4.3. Time over which investment is placed in service or use. - Property shall be considered placed in service or use in the earlier of the following taxable years:

4.3.1. The taxable year in which, under the taxpayer's federal income tax depreciation practice, the period for depreciation with respect to such property begins; or

4.3.2. The taxable year in which the property is placed in a condition or state of readiness and availability for a specifically assigned function.

4.3.3. In the case of a nonproject credit or a multiple party single year certified project, investment may be placed in service or use over a period of 365 days, beginning on the date when any portion or item of property purchased or leased for business expansion is first placed into service or use.
4.3.3.1. Any investment made subsequent to the end of the taxable year under W. Va. Code '11-13C-4 (a three hundred and sixty-five (365) day year) must be excluded from the measure of qualified investment, and no business investment and jobs expansion tax credit is available for it.

The only circumstance where investment place in service or use over a period of more than one (1) year can qualify for the business investment and jobs expansion tax credit is where a multiple year business investment and jobs expansion tax credit project has been approved by the Tax Commissioner under W. Va. Code '11-13C-4b. Refer to Section 4b of these regulations for a discussion of multiple year projects.

4.3.4. In the case of a multiple party certified project, project investment will be treated as having been placed in service or use beginning on the date when any portion or item of property purchased or leased for business expansion is first placed in service or use by a project participant. The period for placement of such property into service or use then ends with the expiration of 365 days, including the day investment is first placed in service or use.

4.3.5. In the case of a multiple year, non-multiple party certified project, the "three (3) year" multiple year investment period begins on the date when any portion or item of property purchased or leased for business expansion is first placed into service or use. The multiple year investment period ends with the end of the taxpayer's second tax year subsequent to the taxpayer's first tax year during which such property is first placed in service or use. Thus, the "three (3) year" multiple year investment period may be as long as three (3) full years of 365 days each, or as short as two (2) years and one (1) day.

4.3.6. In the case of multiple party, multiple year projects, the "three (3) year" multiple year investment period begins on the date which any portion or item of property purchased or leased for business expansion is first placed in service or use by a project participant, and ends with the end of the second tax year subsequent to the end of the first tax year of that same participant during which such property is first placed in service or use.

4.3.7. In the case of multiple party, multiple year certified projects where two (2) or more project participants first place project property purchased or leased for business expansion into service or use simultaneously or on the same date, the multiple year project investment period begins on such date, and ends with the end of the second tax year subsequent to end of the first tax year when property purchased or leased for business expansion is first placed in service or use which occurs earliest in time among those same particular project participants which have first placed investment into service or use on the same date.

Disclaimer: These regulations may not be the most recent version. West Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.