West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-21G - Income Tax Paid At The Entity Level By Electing Pass-Through Entities
Section 110-21G-8 - Computing Electing Pass-Through Entity Tax

8.1. An electing PTE calculates its West Virginia income tax by multiplying its West Virginia taxable income by a tax rate equal to the top marginal personal income tax rate on individuals.

8.2. Economic development tax credits and other credits allowed by law to be passed through to the owners of a pass-through entity may be applied against the electing PTE tax. These credits include, but are not limited to:

Economic Opportunity Tax Credit (W.Va. Code §11-13Q-1 et seq.);

High Technology Manufacturers Credit (W.Va. Code §11-13Q-10a);

Jobs Creation Tax Credit (W.Va. Code §11-13Q-22);

Small Business Property Tax Adjustment Tax Credit (a refundable credit) (W.Va. Code §11-13MM-5);

Downstream Natural Gas Manufacturing Investment Tax Credit (W. Va. Code §11-13GG-1 et seq.);

Natural Gas Liquids Property Tax Adjustment Credit (W. Va. Code §11-13HH-1 et seq.);

Post-Coal Mine Site Business Credit (W. Va. Code §11-28-1 et seq.);

Environmental Agricultural Equipment Credit (W. Va. Code §11-13K-1 et seq.);

Military Incentive Credit (Formerly Veterans Employment Credit) (W. Va. Code §11-21-42);

High-Wage Growth Business Tax Credit (W. Va. Code §11-13II-1 et seq.);

Neighborhood Investment Program Credit (W. Va. Code §11-13J-1 et seq.);

Historic Rehabilitated Buildings Investment Credit (W. Va. Code §11-21-8a);

Credit For Qualified Rehabilitated Residential Building Investment (W. Va. Code §11-21-8a);

Apprenticeship Training Tax Credit (W. Va. Code §11-13W-1 et seq.);

West Virginia Farm To-Food Bank Tax Credit (W. Va. Code §11-13DD-1 et seq.);

Tax Credit For Donation Or Sale Of Vehicle (W. Va. Code §11-13FF-1 et seq.);

Professional Services Destination Facility Tax Credit (part of the Tourism Development Tax Credit) (W. Va. Code §5B-2e-1 et seq.);

Small Arms and Ammunition Manufacturing Facility Tax Credit For Federal Excise Tax Paid (W. Va. Code §11-13KK-1 et seq.);

High-Wage Growth Business Tax Credit (a refundable credit) (W. Va. Code §11-13II-1 et seq.); and

The West Virginia Film Industry Investment Act Credit (W. Va. Code §11-13X-1 et seq.);

8.3. Treatment of the federal 26 U.S.C. §199A deduction -- The federal income tax deduction allowable under 26 U.S.C. §199A is not an allowable adjustment in determining the tax liability of an electing PTE. The federal 26 U.S.C. §199A deduction is a "below the line" federal income tax deduction. It does not reduce a Taxpayer's federal adjusted gross income. The deduction is taken after federal adjusted gross income is determined.

8.4. Treatment of depletion allowance -- The electing PTE may take a proforma depletion allowance in the amount allowable under 26 U.S.C. §611 et seq., to be deducted by the electing PTE in determining West Virginia taxable income of the electing PTE at the entity level.