ENGROSSED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 10
(By Senators Minear and Hunter)
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[Originating in the Committee on Finance;
reported February 23, 2006.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-21-15a; and to
amend said code by adding thereto a new section, designated
§11-24-11b, all relating to personal income and corporation
net income tax credits; allowing a credit against a taxpayer's
tax liability for contributions to community foundations; and
providing limitations on credits.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-21-15a; and that
said code be amended by adding thereto a new section, designated
§11-24-11b, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-15a. Credit for contribution to qualified community foundation.
(a) A taxpayer who does not claim a credit under the
provisions of section eleven-b, article twenty-four of this chapter
is allowed a credit, against the tax imposed by the provisions of
this article, of fifty percent of the amount the taxpayer
contributes during the taxable year to an endowment fund of a
community foundation if a contribution to that entity is tax
deductible for the donor under the Internal Revenue Code.
(b) For a taxpayer other than a resident estate or trust, the
credit allowed by this section for a contribution to a community
foundation may not exceed one hundred dollars in any tax year or
two hundred dollars in any tax year for a husband and wife filing
a joint return.
(c) For a resident estate or trust, the credit allowed by this
section for a contribution to a community foundation may not exceed
ten percent of the taxpayer's tax liability in any tax year or five
thousand dollars, whichever is less.
(d) The credits allowed by this section are nonrefundable so
that a taxpayer may not claim under this section a total credit
amount that reduces the taxpayer's tax liability to less than zero.
(e) As used in this section, "community foundation" means an
organization that applies for certification on or before the first
day of April of the tax year for which the taxpayer is claiming the
credit and that the Department of Revenue certifies for that tax year as meeting all of the following requirements:
(1) Qualifies for exemption from federal income taxation under
Section 501(c)(3) of the Internal Revenue Code;
(2) Supports a broad range of charitable activities within a
specific geographic area of this state that it serves, including a
municipality or county;
(3) Maintains an ongoing program to attract new endowment
funds by seeking gifts and bequests from a wide range of potential
donors in the community or area served;
(4) Is publicly supported as defined by the regulations of the
United States Department of the Treasury, 26 C. F. R.
1.170A-9(e)(10);
(5) Is not a supporting organization as defined under Section
509(a)(3) of the Internal Revenue Code and the regulations of the
United States Department of the Treasury, 26 C. F. R. 1.509(a)-4
and 1.509d(a)-5;
(6) Meets the requirements for treatment as a single entity
contained in the regulations of the United States Department of the
Treasury, 26 C. F. R. 1.170A-9(e)(11); and
(7) Is incorporated or established as a trust before the first
day of September of the year immediately preceding the tax year for
which the credit is claimed.
(f) When the total amount of tax credits authorized in this
section and section eleven-b, article twenty-four of this chapter in combination equals three million dollars no further
authorizations shall be issued for that tax year.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-11b. Credit for contributions to community foundations.
(a) A taxpayer who does not claim a credit under the
provisions of section fifteen-a, article twenty-one of this chapter
is allowed a credit, against the tax imposed by the provisions of
this article, of fifty percent of the amount the taxpayer
contributes during the taxable year to an endowment fund of a
community foundation if a contribution to that entity is tax
deductible for the donor under the Internal Revenue Code.
(b) The credit allowed by this section for a contribution to
a community foundation may not exceed five percent of the
taxpayer's tax liability for the tax year before claiming any
credits allowed by this section or five thousand dollars, whichever
is less.
(c) The credits allowed by this section are nonrefundable so
that a taxpayer may not claim under this section a total credit
amount that reduces the taxpayer's tax liability to less than zero.
(d) As used in this section, "community foundation" means an
organization that applies for certification on or before the first
day of April of the tax year for which the taxpayer is claiming the
credit and that the Department of Revenue certifies for that tax
year as meeting all of the following requirements:
(1) Qualifies for exemption from federal income taxation under
Section 501(c)(3) of the Internal Revenue Code;
(2) Supports a broad range of charitable activities within a
specific geographic area of this state that it serves, including a
municipality or county;
(3) Maintains an ongoing program to attract new endowment
funds by seeking gifts and bequests from a wide range of potential
donors in the community or area served;
(4) Is publicly supported as defined by the regulations of the
United States Department of the Treasury, 26 C. F. R.
1.170A-9(e)(10);
(5) Is not a supporting organization as defined under Section
509(a)(3) of the Internal Revenue Code and the regulations of the
United States Department of the Treasury, 26 C. F. R. 1.509(a)-4
and 1.509d(a)-5;
(6) Meets the requirements for treatment as a single entity
contained in the regulations of the United States Department of the
Treasury, 26 C. F. R. 1.170A-9(e)(11); and
(7) Is incorporated or established as a trust before the first
day of September of the year immediately preceding the tax year for
which the credit is claimed.
(e) When the total amount of tax credits authorized in this
section and section fifteen-a, article twenty-one of this chapter
in combination equals three million dollars no further authorizations shall be issued for that tax year.