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-4a - Credit allowed for locating corporate head quarters in this State

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

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

4a.1. Credit allowed. - A corporation that presently has its corporate headquarters located outside of West Virginia that relocates its corporate headquarters in this State and employs, on a full-time basis, at its new corporate headquarters location, at least fifteen (15) people, who are domiciled in this State, shall be allowed credit under W. Va. Code '11-13C et seq.

4a.1.1. W. Va. Code '11-13C-3(b)(13), in defining the term "new employees" for the purpose of determining the number of new jobs attributable to qualified investment, states, in relevant part, that:

In no case shall the new employees allowed for purposes of this credit exceed the total increase in the taxpayer's employment in this state.

Thus, the allowable amount of credit must always be based upon the net number of new jobs created. Any decrease in the number of West Virginia employees in any area or segment of a taxpayer's business must count directly against the number of new jobs attributable to qualified investment over the (generally) ten (10) year credit period.

4a.2. Determination of credit. - The amount of credit allowed by W. Va. Code '11-13C-4a and subsection 4a.1 of these regulations shall be determined, at the election of the taxpayer:

4a.2.1. By multiplying its adjusted qualified investment by its new jobs percentage (as determined under W. Va. Code '11-13C-7); or

4a.2.2. By multiplying its adjusted qualified investment by ten percent (10%).

4a.3. Application of credit. - The corporate headquarters relocation credit allowed by W. Va. Code '11-13C-41 and Section 4a of these regulations shall be applied in the manner prescribed in W. Va. Code '11-13C-5 and Section 5 of these regulations: Provided, That the amount of corporation net income taxes against which the credit allowed by W. Va. Code '11-13C-4a may be applied, shall be the sum of the corporation net income tax due on adjusted federal taxable income allocated to this State under W. Va. Code '11-24-7, plus that portion of the corporation net income tax due on adjusted federal taxable income apportioned to this State under W. Va. Code '11-24-7, that is further apportioned to the qualified investment using the payroll factor provided in paragraph (1), subsection (h) of W. Va. Code '11-13C-5. For all other purposes, the credit allowed by this Section shall be treated as credit allowed by W. Va. Code '11-13C-4.

4a.4. Definition. - For purposes of this Section.

4a.4.1. Adjusted qualified investment. - The term "adjusted qualified investment" means the taxpayer's qualified investment, as determined under W. Va. Code '11-13C-6 and these regulations, plus the cost of the reasonable and necessary expenses it incurred to relocate its corporate headquarters at a location in this State from its present location outside this State.

4a.4.2. Corporate headquarters. - The term "corporate headquarters" means the place at which the corporation has its commercial domicile and from which the business of the corporation is primarily conducted.
4a.4.2.1. The term "commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed. A corporation need not become a domestic West Virginia corporation in order to have its commercial domicile in West Virginia for purposes of this credit.

4a.4.3. Reasonable and necessary expenses incurred to relocate corporate headquarters. - The phrase "reasonable and necessary expenses incurred to relocate corporate headquarters" means only those expenses incurred and paid by the corporation, to unrelated third parties, to move its corporate headquarters and its corporate headquarters employees to this State that are, upon application by the corporation, determined by the Tax Commissioner to have been both reasonable and necessary to effectuate the move. For periods subsequent to March 10, 1990, such expenses may include relocation allowances or reimbursements paid to relocated employees who own not more than one percent (1%) of the total equity of the corporation or any affiliate thereof. For purposes of this regulation, any person owning more than one percent (1%) of the total equity of the corporation or any affiliate of the corporation shall be deemed a related party, and payment to such persons shall not qualify as a reasonable and necessary expense.

4a.5. Effective date. - The credit allowed by W. Va. Code '11-13C-4a shall be allowable for corporate headquarters placed in service or use on or after February 1, 1986.

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.
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