Current through Register Vol. XLI, No. 38, September 20, 2024
5.1.
General. -- The qualified investment in property purchased or leased for a new,
or expansion of an existing, downstream natural gas manufacturing facility is
the applicable percentage of the cost of each property purchased or leased for
the purpose of the new, or expansion of an existing, downstream natural gas
manufacturing facility which is placed in service or use in this state by the
taxpayer during the taxable year.
5.1.1.
Applicable percentage. -- For the purpose of this section, the applicable
percentage of any property is determined under the following table:
5.1.1.a. Table.
|
If useful life is: |
The applicable percentage is: |
|
Less than four years |
0% |
|
Four years or more but less than six
years |
33 1/3% |
|
Six years or more but less than eight
years |
66 2/3% |
|
Eight years or more |
100% |
5.1.1.b. The useful life of any property, for
purposes of this section, is determined as of the date the property is first
placed in service or use in this state by the taxpayer, determined in
accordance with the provisions of W. Va. Code §
11-13GG-4
and subsection 3.3.1 of this rule.
5.2. Cost. -- For purposes of section 5.1 of
this section heading, the cost of each property purchased for a new, or
expansion of an existing, downstream natural gas manufacturing facility is
determined under the following rules:
5.2.1.
Trade-ins. -- Cost does not include the value of property given in trade or
exchange for the property purchased for a new, or for expansion of an existing,
downstream natural gas manufacturing facility.
5.2.2. Damaged, destroyed, or stolen
property. -- If property is damaged or destroyed by fire, flood, storm, or
other casualty, or is stolen, then the cost of replacement property does not
include any insurance proceeds received in compensation for the loss.
5.2.3. Rental property. --
5.2.3.a. The cost of real property acquired
by written lease for a primary term of 10 years or longer is 100 percent of the
rent reserved for the primary term of the lease, not to exceed 20 years.
5.2.3.b. The cost of tangible
personal property acquired by written lease for a primary term of:
5.2.3.b.1. Four years, or longer, is one
third of the rent reserved for the primary term of the lease;
5.2.3.b.2. Six years, or longer, is two
thirds of the rent reserved for the primary term of the lease; or
5.2.3.b.3. Eight years, or longer, is 100
percent of the rent reserved for the primary term of the lease, not to exceed
20 years: Provided, That in no event may rent reserved include rent for any
year subsequent to expiration of the book life of the equipment, determined
using the straight-line method of depreciation.
5.2.4. Self-constructed property. -- In the
case of self-constructed property, the cost thereof is the amount properly
charged to the capital account for depreciation in accordance with federal
income tax law.
5.2.5. Transferred
property. -- The cost of property used by the taxpayer out-of-state and then
brought into this state, is determined based on the remaining useful life of
the property at the time it is placed in service or use in this state, and the
cost is the original cost of the property to the taxpayer less straight line
depreciation allowable for the tax years or portions thereof the taxpayer used
the property outside this state. In the case of leased tangible personal
property, cost is based on the period remaining in the primary term of the
lease after the property is brought into this state for use in a new or
expanded business facility of the taxpayer, and is the rent reserved for the
remaining period of the primary term of the lease, not to exceed 20 years, or
the remaining useful life of the property, as determined as aforesaid,
whichever is less.
