West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-13GG - Downstream Natural Gas Manufacturing Investment Tax Credit
Section 110-13GG-3 - The amount of credit

Universal Citation: 110 WV Code of State Rules 110-13GG-3

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

3.1. Credit allowed. -- Eligible taxpayers are allowed a credit against the portion of taxes imposed by this state that are attributable to and the consequence of the taxpayer's qualified investment in a new or expanded downstream natural gas manufacturing facility in this state, which results in the creation of new jobs. The amount of this credit is determined and applied as provided in W. Va. Code § 11-13GG-1, et seq., and this rule.

3.2. 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 § 11-13GG-6, in property purchased or leased for a new, or expansion of an existing "downstream natural gas manufacturing facility," as defined in W. Va. Code § 11-13GG-3, by the taxpayer's new jobs percentage, determined under W. Va. Code § 11-13GG-7. The product of this calculation establishes the maximum amount of credit allowable under W. Va. Code § 11-13GG-1, et seq., due to the qualified investment.

3.3. Application of credit over 10 years. -- The amount of credit allowable must be taken over a 10-year period, at the rate of one tenth of the amount thereof per taxable year, beginning with the taxable year in which the taxpayer places the qualified investment into service or use in this state, unless the taxpayer elected to delay the beginning of the 10-year period until the next succeeding taxable year. This election shall be made in the annual income tax return filed under chapter 11 of the West Virginia Code for the taxable year in which qualified investment is first placed into service or use by the taxpayer. Once made, the election cannot be revoked. The annual credit allowance is taken in the manner prescribed in W. Va. Code § 11-13GG-5.

3.3.1. Placed in service or use. -- For purposes of the credit allowed by this section, property is considered placed in service or use in the earlier of the following taxable years:
3.3.1.a. The taxable year in which, under the taxpayer's depreciation practice, the period for depreciation with respect to the property begins; or

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

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