Current through Register Vol. XLI, No. 38, September 20, 2024
The following terms defined in W. Va. Code '11-13M-2 are
explained, illustrated or clarified by the subsections immediately below
them:
2.1. "Affiliate" means and
includes all persons, as defined in this section, which are affiliates of each
other, when either directly or indirectly:
(A)
One person controls or has the power to control the other, or
(B) A third party or third parties control or
have the power to control two persons, the two thus being affiliates. In
determining whether concerns are independently owned and operated and whether
or not an affiliation exists, consideration shall be given to all appropriate
factors, including common ownership, common management and contractual
relationships.
2.1.1. The term
"affiliate" includes a member of an affiliated group.
2.2. "Consumer-ready wood products" means
value-added wood products that are ready for sale to consumers at the end of
the manufacturing process. Consumer-ready wood includes any value-added wood
product that does not require further manufacturing before it may ordinarily be
used or consumed by the purchaser of the product, except that consumer-ready
wood product does not include any product that is not manufactured primarily
from wood, any product that is not commercially marketed as a wood product for
sale primarily to consumers of the product, or paper or paper products.
2.2.1 Consumer-ready wood products are
considered to be manufactured if they are produced by employees in a factory on
an assembly line basis, as opposed to craftsmen or artisans who only make
customized and/or unique wood products. The manufacturing process does not
begin until after wood arrives at the factory for conversion into a wood
product ready to be used or consumed by a purchaser of the product.
2.2.2. Consumer-ready wood products are
considered to be manufactured primarily from wood if more than half of the
final product consists of wood and if the cost of the wood constitutes more
than half of the cost of all materials included in the final product.
2.2.3. Consumer-ready wood products are
considered ready for sale to consumers even though the products are sold to
wholesalers or retailers for resale, and even though the ultimate consumer may
be required to assemble them or would normally be expected to put finishing
touches on them after purchase.
2.2.4. For example, consumer-ready wood
products include, but are not limited to, gates, split rails and posts used for
fencing. Even if the consumer assembles, installs and paints these products, no
further manufacturing occurs. Similarly, manufacture of lumber would be
considered a consumer-ready wood product unless sold to a manufacturer for
further manufacturing.
2.3. "Corporation" includes any corporation,
a joint-stock company and any association or other organization which is
classified as a corporation under federal income tax law.
2.3.1. The term "corporation" includes a
limited liability company if it is taxable as a corporation under federal
income tax law.
2.4.
"Full-time employee" means a permanent hourly employee of an eligible taxpayer,
who is a West Virginia domiciled resident, and works in a new consumer-ready
wood product manufacturing facility in this State, or in a new consumer-ready
wood product line of an existing manufacturing facility in this State, more
than eighteen hundred hours during the entire twelve-month period ending on the
last day of the taxable year of the eligible employer, whether these hours are
hours worked at the manufacturing facility, or include hours of employer paid
vacation leave or other employer paid leave. Full-time employee does not
include an employee who is a part-time, seasonal or temporary employee.
2.4.1. No combination of part-time, seasonal
or temporary employees may be considered equivalent to a full-time
employee.
2.4.2. No person who is
not an employee (such as an independent contractor) may be considered a
full-time employee.
2.4.3. An
employee who moves to West Virginia in order to become a West Virginia
domiciled resident in order to fill a new job may be counted as a full-time
employee if he or she otherwise qualifies as a full-time employee.
2.5. "New job" means a job at a
new consumer-ready wood product manufacturing facility located in this state,
or at a new consumer-ready wood product line at an existing manufacturing
facility located in this state, which did not exist in this state with any
employer as of the first day of the second calendar month preceding the
calendar month in which the new consumer-ready wood product manufacturing
facility begins to manufacture consumer-ready wood products, or in which the
new consumer-ready wood product line begins to manufacture consumer-ready wood
products in an existing manufacturing facility located in this state, that is
filled by a full-time employee of the eligible taxpayer.
2.5.1. If both consumer-ready and
non-consumer-ready wood products are manufactured by a taxpayer, the number of
new jobs to be used for calculating the credit shall be limited to the new jobs
attributable to the consumer-ready wood products.
2.5.2. If a type of wood product is sold
ready for use by consumers, and is also sold to manufacturers for use in the
manufacture of consumer-ready wood products, the wood product is a
consumer-ready wood product only if commercially marketed as a wood product for
sale primarily to consumers. If the wood product is primarily marketed to
consumers, all of the jobs created at the manufacturing facility shall be
considered new jobs for purposes of computing the credit. Otherwise, the number
of new jobs to be used for calculating the credit shall be limited to the new
jobs attributable to the sales to consumers, including sales to wholesalers and
retailers for resale to consumers.
2.5.2.1.
For example, if a new manufacturing facility manufactures 2x4 lumber which it
sells in equal dollar amounts to consumers and to manufacturers, only half of
the jobs created at the facility would be counted as new jobs when computing
the credit.
2.6. "Partnership" means and includes a
syndicate, group, pool, joint venture or other unincorporated organization
through or by means of which any business, financial operation, or venture is
carried on, which is classified as a partnership for federal income tax
purposes for the taxable year.
2.6.1. The term
"partnership" may include a limited liability company if it is not taxable as a
corporation under federal income tax law.
2.7. "Tax year or taxable year" means the tax
year of the taxpayer for federal income tax purposes.
2.7.1. The term "tax year" includes a short
tax year by an eligible taxpayer during its first year of operation.
