Current through Register Vol. XLI, No. 38, September 20, 2024
8.1. Requirements to Claim the Tax Credit. --
To claim a tax credit, the eligible taxpayer shall comply with W. Va. Code
§
11-13AA-1,
et seq. and this rule and shall timely provide complete and
accurate forms, returns, schedules and other information required by the Tax
Commissioner.
8.2. Applicability of
Various Tax Laws. -- Application of this credit and eligibility for this credit
shall not abrogate application of the provisions of W. Va. Code §
11-23-1,
et seq. (Business Franchise Tax), W. Va. Code §
11-24-1,
et seq. (Corporation Net Income Tax) and W. Va. Code §
11-21-1,
et seq. (Personal Income Tax), and rules issued pursuant to
those statutes, with respect to any eligible taxpayer or owner of any eligible
taxpayer to the extent that they may be subject to the provisions of those
laws, and shall not abrogate application of the provisions of W. Va. Code
§
11-10-1,
et seq. (Procedure and Administration) which provides for
administration of those taxes.
8.3.
Maintenance of Records. -- An eligible company shall maintain the records
required to verify the validity of its eligibility for the tax credit and the
accuracy of the amount of the tax credit claimed. Failure to do so may result
in denial of the tax credit. Specifically, a person who claims any credit under
this rule shall maintain sufficient records to establish the following facts
about the patent for which a credit is allowed:
8.3.a. For credit accrued under Subsection
3.1 of this rule:
8.3.a.1. The patent number
and title;
8.3.a.2. The amount of
royalties, license fees or other consideration received for use of the
patent;
8.3.a.3. The month and
taxable year in which the agreement required under Subsection 3.1 of this rule
was entered into;
8.3.a.4. The
month and taxable year in which the patent was first used, placed in service or
directly used in a manufacturing process or product in this State;
8.3.a.5. The amount of credit
taken;
8.3.a.6. The date the patent
was disposed of or otherwise ceased to be used in a manufacturing process or
product in this State;
8.3.a.7. The
direct cost for developing the patent; and
8.3.a.8. The direct cost for developing the
patent in this State.
8.3.b. For credit accrued under Subsection
3.2 of this rule:
8.3.b.1. The patent number
and title;
8.3.b.2. The amount of
royalties, license fees or other consideration received for use of the
patent;
8.3.b.3. The month and
taxable year in which the agreement required under Subsection 3.1 of this rule
was entered into;
8.3.b.4. The
month and taxable year in which the patent was first used, placed in service or
directly used in a manufacturing process or product in this State;
8.3.b.5. The amount of credit
taken;
8.3.b.6. The date the patent
was disposed of or otherwise ceased to be used in a manufacturing process or
product in this State;
8.3.b.7.
Each and every item of depreciable property purchased for purposes of claiming
the enhanced credit;
8.3.b.8. The
date the depreciable property was purchased, its cost and its estimated useful
life determined using strait-line method of depreciation;
8.3.b.9. The date the depreciable property
was placed in service or used in the person's business activity in this State;
and
8.3.b.10. The date the
depreciable property was taken out of service or use in the person's business
activity in this State and the reason why the property was taken out of service
or use.
8.3.c. For credit
accrued under Subsection 3.3 of this rule:
8.3.c.1. The patent number and
title;
8.3.c.2. The amount of net
profit attributable to the patent along with all information used to derive
this figure in accordance with Section 5 of this rule;
8.3.c.3. The month and taxable year in which
the agreement required under Subsection 3.1 of this rule was entered
into;
8.3.c.4. The month and
taxable year in which the patent was first used, placed in service or directly
used in a manufacturing process or product in this State;
8.3.c.5. The amount of credit taken;
and
8.3.c.6. The date the patent
was disposed of or otherwise ceased to be used in a manufacturing process or
product in this State.
8.3.d. For credit accrued under Section 3.4
of this rule:
8.3.d.1. The patent number and
title;
8.3.d.2. The amount of net
profit attributable to the patent along with all information used to derive
this figure in accordance with Section 5 of this rule;
8.3.d.3. The month and taxable year in which
the agreement required under Subsection 3.1 of this rule was entered
into;
8.3.d.4. The month and
taxable year in which the patent was first used, placed in service or directly
used in a manufacturing process or product in this State;
8.3.d.5. The amount of credit
taken;
8.3.d.6. The date the patent
was disposed of or otherwise ceased to be used in a manufacturing process or
product in this State;
8.3.d.7.
Each and every item of depreciable property purchased for purposes of claiming
the enhanced credit;
8.3.d.8. The
date the depreciable property was purchased, its cost and its estimated useful
life determined using strait-line method of depreciation;
8.3.d.9. The date the depreciable property
was placed in service or used in the person's business activity in this State;
and
8.3.d.10. The date the
depreciable property was taken out of service or use in the person's business
activity in this State and the reason why the property was taken out of service
or use.
