West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-13KK - West Virginia Tax Credit for Federal Excise Tax Imposed Upon Small Arms and Ammunition Manufacturers
Section 110-13KK-4 - Application of the credit

4.1.1.a. That portion of the allowable credit attributable to qualified investment in a small arms and ammunition manufacturing facility may be applied to reduce the taxes imposed by W. Va. Code § 11-24-1, et seq., for the taxable year as determined before application of allowable credits against tax.

4.1.1.b. If the taxes due under W. Va. Code § 11-24-1, et seq., as determined before application of allowable credits against tax, are not solely attributable to and the direct result of the taxpayer's qualified investment in a small arms and ammunition manufacturing business, the amount of the taxes that is attributable is determined by multiplying the amount of taxes due under W. Va. Code § 11-24-1, et seq., for the taxable year, as determined before application of allowable credits against tax, by a fraction, the numerator of which is all wages, salaries, and other compensation paid during the taxable year to all employees of the taxpayer employed in this state whose positions are directly attributable to the qualified investment, and the denominator of which is the wages, salaries, and other compensation paid during the taxable year to all employees of the taxpayer employed in this state.

4.1.2.a. If the person making the qualified investment in a small arms and ammunition manufacturing facility is an electing small business corporation, as defined in section 1361 of the United States Internal Revenue Code, a partnership, a limited liability company that is treated as a partnership for federal income tax purposes, or a sole proprietorship, then any unused credit is allowed as a credit against the taxes imposed by W. Va. Code § 11-21-1, et seq., on the income from the small arms and ammunition manufacturing facility, or on income of a sole proprietor attributable to the small arms and ammunition manufacturing facility.

4.1.2.b. Electing small business corporations, limited liability companies treated as partnerships for federal income tax purposes, partnerships, and other unincorporated organizations shall allocate the credit against the income tax imposed by W. Va. Code § 11-21-1, et seq., among its members in the same manner as profits and losses are allocated for the taxable year.

4.1.2.c. If the amount of taxes attributable to business activity due under W. Va. Code § 11-21-1, et seq., as determined before application of allowable credits against tax, is not solely attributable to and the direct result of the qualified investment of the electing small business corporation, limited liability company treated as a partnership for federal income tax purposes, other unincorporated organization, or sole proprietorship, the amount of the taxes that are so attributable are determined by multiplying the amount of taxes due under W. Va. Code § 11-21-1, et seq., as determined before application of allowable credits against tax that are attributable to business activities by a fraction, the numerator of which is all wages, salaries, and other compensation paid during the taxable year to all employees of the electing small business corporation, limited liability company, partnership, other unincorporated organization, or sole proprietorship employed in this state, whose positions are directly attributable to the qualified investment, and the denominator of which is the wages, salaries, and other compensation paid during the taxable year to all employees of the taxpayer.

4.1.2.d. No credit is allowed under this section against any employer withholding taxes imposed by W. Va. Code § 11-21-1, et seq.