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Committee Substitute House Bill 3060 History

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COM SUB 2 LINES

COMMITTEE SUBSTITUTE

FOR

H. B. 3060

(By Delegates Kominar, Ashley, Carmichael, Varner,

 White and Pethtel)

(Originating in the Committee on Finance)

[February 17, 2011]

 

 

A BILL to amend and reenact §11-24-11b of the Code of West Virginia, 1931, as amended, relating to creating a permanent method for determining the allowance for certain utilities of tax credits for the remainder of their net operating loss carryovers that existed as of December 31, 2006.

Be it enacted by the Legislature of West Virginia:

    That §11-24-11b of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 24. CORPORATION NET INCOME TAX.

§11-24-11b. Credit for utility taxpayers with net operating loss carryovers that existed as of December 31, 2006.

    (a) General. -- There shall be allowed to every eligible taxpayer a nonrefundable credit against its primary tax liability imposed under this article for any net operating loss carryovers that exist as of December 31, 2006.

    (b)(1) “Eligible taxpayer” means any person subject to the business and occupation taxes prescribed by article thirteen of this chapter and exercising any privilege taxable under section two-o of this article.

    (2) “Eligible taxpayer” also includes an affiliated group of taxpayers if:

    (A) For tax years beginning on or before December 31, 2008, an affiliated group of taxpayers if the group elects to file a consolidated corporation net income tax return under this article if one or more affiliates included in the affiliated group would qualify as an eligible taxpayer under subdivision (1) of this subsection; or

    (B) For tax years beginning on or after January 1, 2009, any taxpayer otherwise eligible under this section that is engaged in a unitary business with one or more other taxpayers and is required to file a combined report under this article.

    (c) Amount of credit. -– The amount of credit allowed shall be equal to one-quarter percent of the eligible taxpayer’s West Virginia net operating loss carryovers allowed by subsection (d), section six of this article that exist existed as of December 31, 2006. Effective for tax years beginning on or after January 1, 2009, the credit is an amount equal to the following subtraction:

    (1) The product of the amount of net operating loss accrued before January 1, 2007, that is taken in the current tax year, multiplied by nine percent, minus

    (2) The product of the amount of net operating loss accrued before January 1, 2007, that is taken in the current tax year multiplied by the tax rate for the current year..

    (d) Application of credit. -– The amount of credit allowed shall be taken against the tax liabilities of the eligible taxpayer under this article as shown on its annual return for the taxable tax year in which its net operating loss carryovers are utilized, as provided in subsection (d), section six of this article. Any credit remaining after application against the eligible taxpayer’s tax liabilities for the current year may be carried forward to subsequent tax years until used the fifth taxable year following the tax year when the remaining current balance of the eligible taxpayer’s West Virginia net operating loss carryovers allowed by subsection (d), section six of this article that existed as of December 3l, 2006, decreased by net operating loss used or applied in each tax year beginning on or after January 1, 2007, is zero. For purposes of determining the remaining current balance of the eligible taxpayer’s West Virginia net operating loss allowed by subsection (d), section six of this article that existed as of December 31, 2006, decreased by net operating loss used or applied in each tax year beginning on or after January 1, 2007 under this section, a first in, first out, net operating loss usage computation shall apply.

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