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, small arms and ammunition 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, small arms and
ammunition manufacturing facility that is placed in service or use in this
state by the taxpayer during the taxable year.
5.1.1. Applicable percentage. -- For the
purposes of section 1 of this subject heading, the applicable percentage of any
property is determined pursuant to 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 heading, 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 §
11-13KK-4
and this rule.
5.2. Cost. -- For purposes of section 1 of
this section heading, the cost of each property purchased for a new, or
expansion of an existing, small arms and ammunition 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 expansion of an existing,
small arms and ammunition 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.
5.2.3.c. 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,
5.2.5.a. 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.
5.2.5.b. 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.
