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-7 - Forfeiture of unused tax credits; redetermination of credit allowed

7.1. Disposition of property or cessation of use. -- If during any taxable year, property with respect to which a tax credit has been allowed under W. Va. Code § 11-13GG-1, et seq., is treated as follows:

7.2. Cessation of operation of downstream manufacturing facility. -- If during any taxable year the taxpayer ceases operation of a downstream natural gas manufacturing facility in this state for which credit was allowed under W. Va. Code § 11-13GG-1, et seq., before expiration of the useful life of property with respect to which tax credit has been allowed under W. Va. Code § 11-13GG-1, et seq., then the unused portion of the allowed credit is forfeited for the taxable year and for all ensuing years. Additionally, except when the cessation is due to fire, flood, storm, or other casualty, the taxpayer shall redetermine the amount of credit allowed in earlier years by reducing the applicable percentage of cost of the property allowed under W. Va. Code § 11-13GG-6, to correspond with the percentage of cost allowable for the period of time that the property was actually used in this state in a downstream manufacturing business of the taxpayer that is taxable under W. Va. Code § 11-24-1, et seq., or in the case of a partnership, limited liability company treated as a partnership for federal income tax purposes, electing small business corporation, other unincorporated entity, or sole proprietorship, taxable under W. Va. Code § 11-21-1, et seq. The taxpayer shall then file a reconciliation statement with the annual return for the primary tax for which the taxpayer is liable under W. Va. Code § 11-21-1, et seq., or § 11-24-1, et seq., whichever is applicable, for the year in which the forfeiture occurs, and pay any additional taxes owed due to the reduction of the amount of credit allowable for the earlier years, plus interest and any applicable penalties.

7.3. Reduction in number of employees. -- If during any taxable year subsequent to the taxable year in which the new jobs percentage is redetermined as provided in W. Va. Code § 11-13GG-7, the average number of employees of the taxpayer, for the current taxable year, employed in positions created because of and directly attributable to the qualified investment falls below the minimum number of new jobs created upon which the taxpayer's annual credit allowance is based, the taxpayer shall calculate what his or her annual credit allowance would have been had his or her new jobs percentage been determined based upon the average number of employees, for the then current taxable year, employed in positions created because of and directly attributable to the qualified investment. The difference between the result of this calculation and the taxpayer's annual credit allowance for the qualified investment as determined under W. Va. Code § 11-13GG-4, is forfeited for the then current taxable year, and for each succeeding taxable year unless for a succeeding taxable year the taxpayer's average employment in positions directly attributable to the qualified investment once again meets the level required to enable the taxpayer to utilize its full annual credit allowance for that taxable year.