Current through Register Vol. XLI, No. 38, September 20, 2024
12.1. The failure to timely apply for the
rebate results in the forfeiture of 25 percent of the rebate amount otherwise
allowable under W. Va. Code §
11-13EE-1,
et seq. This 25 percent forfeiture penalty applies each year
until the properly completed application for rebate is filed with the State Tax
Commissioner.
12.2. Exceptions to
forfeiture are set forth below.
12.2.1. The
qualified investment property may not be treated as disposed of under W. Va.
Code §
11-13EE-9
by reason of a mere change in the form of conducting the business, as long as
the qualified investment property continues to be used at the coal mining
operation at which it was originally placed in service or use by the transferor
business in this state, and the transferor business retains a controlling
interest in the successor business. In order to avoid forfeiture, the successor
business must continue to operate the same qualified investment property at the
coal mining operation in this state at which the qualified investment property
was first placed in service or use subject to the requirements in W. Va. Code
§
11-13EE-1,
et seq., and this rule regarding use and duration.
12.2.1.a. Under the scenario described above,
the successor business can claim the rebate amount of credit still available
with respect to the qualified investment property that was
transferred.
12.2.1.b. Under the
scenario described above, the transferor business is not required to
redetermine the amount of rebate allowed in earlier years.
12.2.2. Qualified investment property is not
treated as disposed of under W. Va. Code §
11-13EE-11
by reason of any transfer or sale to a successor business which continues to
operate the same qualified investment property at the coal mining operation in
this state at which the qualified investment property was first placed in
service or use subject to the requirements in W. Va. Code §
11-13EE-1,
et seq., and this rule regarding use and duration.
12.2.2.a. Upon transfer or sale of qualified
investment property and the coal mining operation, the successor shall acquire
the amount of rebate, if any, that remains available under W. Va. Code §
11-13EE-1,
et seq.
12.2.2.b.
Upon transfer or sale of qualified investment property and the coal mining
operation, the transferor business is not required to redetermine the amount of
rebate allowed in earlier years.
12.3.
Notice of transfer to Tax
Commissioner. -- Within 30 days after transfer of qualified investment
property and the coal mining operation to a successor business, the transferor
shall provide notice to the Tax Commissioner of the transfer and provide such
information about the transfer that the Tax Commissioner may require.
