COMMITTEE SUBSTITUTE
FOR
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 686
(By Senators Plymale, McCabe, Bailey, Fanning, Chafin,
Minard, Jenkins and White)
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[Originating in the Committee on Finance;
reported February 22, 2008.]
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A BILL to amend and reenact §31-15A-7 of the Code of West Virginia,
1931, as amended; and to amend said code by adding thereto two
new sections, designated §31-15A-7a and §31-15A-10a, all
relating to the West Virginia Infrastructure and Jobs
Development Council; providing for the planning, construction
and expansion of new or existing water, sewer and gas lines or
facilities and other infrastructure concomitant to the
construction of the new roads projects; providing a tax credit
for contributions for planning, construction or expansion of
new or existing water and sewer lines; and providing a tax
credit for contributing to the completion of projects
recommended by the council and roads associated with such projects.
Be it enacted by the Legislature of West Virginia:
That §31-15A-7 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that said code be amended by adding
thereto two new sections, designated §31-15A-7a and §31-15A-10a,
all to read as follows:
ARTICLE 15A. WEST VIRGINIA INFRASTRUCTURE AND JOBS DEVELOPMENT
COUNCIL.
§31-15A-7. Current and prospective planning; roads and highways;
report to Division of Highways.
(a) The council shall take into account the current and
prospective infrastructure needs in relation to plans of the
Division of Highways for the development and building of new roads.
Upon completion of an environmental impact study, the Commissioner
of Highways shall provide the council with plans for any and all
new roads. In a timely manner, the council shall advise the
Commissioner of the Division of Highways on the feasibility of the
expansion of new or existing water,
and sewer
and gas lines
or
facilities and other infrastructure concomitant to the construction
of the new roads.
(b) The council
has the authority to appoint local may, with
respect to each new road, establish highway construction
infrastructure planning teams,
each consisting of six voting
members. The local infrastructure Each planning team
may shall consist of the following: A designee of the Division of Highways
from the region where the new road is being built; a designee of
the Division of Highways from the central state office; a designee
from the Environmental Engineers Division of the Department of
Health and Human Resources;
a designee the director or directors
from the local developmental authority
or authorities where the new
road is being built;
a designee from the regional developmental
authority in the area where the new road is being built; a designee
from the Public Service Commission; a designee from the
division
Department of Environmental Protection;
a designee from the county
commission where the new road is being built who shall serve as
chairperson of the planning team; a citizen of the county where the
new road is being built to be chosen by the county commission; and
a designee from the West Virginia Division of the Federal Highway
Administration who shall serve as a nonvoting ex officio member.
Other nonvoting, ex officio members are the elected state delegates
and senators from the area where the new road is being built.
The
director of the local development authority shall serve as chair
or, where multiple counties are involved, the local development
directors shall select the person to serve as chair of the planning
team. No business may be transacted by a planning team in the
absence of a quorum. The planning team shall meet prior to the
development and building of a new road or during the construction
of the road. Representatives of all utilities located in the project area shall be invited to all meetings.
(c) In order to avoid delay of any
highway road project,
immediately upon
appointment creation of a
local infrastructure
planning team, the
director Commissioner of the Division of
Highways shall submit to the council a time frame within which the
planning team must act and within which the planning team must
submit any plans, maps, recommendations or reports developed
pursuant to this subsection.
The local infrastructure planning
team shall meet prior to the development and building of a new
road. Members of the local infrastructure planning team shall only
receive payment for actual expenses incurred. The local
infrastructure planning team shall advise the commissioner of the
Division of Highways on the feasibility of an infrastructure plan.
The local infrastructure Each planning team shall meet to develop
an infrastructure plan that includes an assessment study of
existing water,
and sewer
and gas lines
or facilities and other
infrastructure and a feasibility study on future development and
laying of water,
and sewer
and gas lines
or facilities and other
infrastructure. After these studies are completed, a developmental
map shall be drawn of the proposed road route with overlays of the
proposed water,
and sewer
and gas lines
or facilities. The
planning team may adopt the local development authorities plan for
infrastructure improvements along the new road. After these
studies are completed, a developmental map shall be drawn of the proposed corridor route with overlays of the proposed water, sewer
and gas lines or facilities. These studies and the map shall be
presented to the Commissioner of the Division of Highways
and the
council and shall be used by the commissioner in the planning,
developing and building of the road
and by the council in
recommending funding for infrastructure along the new road.
(c) (d) The Water Development Authority shall
establish
continue a restricted account within the Infrastructure Fund to be
expended for the construction of water,
and sewage
and gas lines
or
facilities and other infrastructure as may be recommended by the
council in accordance with this article and specifically, in
accordance with the plan developed under subsection
(b) (c) of this
section. The reserve account shall be known as the Infrastructure
Road Improvement Reserve Account.
The Legislature shall
appropriate ten million dollars annually to the reserve account.
In order for a project to receive assistance from the
Infrastructure Road Improvement Reserve Account it must meet the
following criteria:
(1) The right-of-way must be a minimum of one thousand feet
long and have a width of a minimum of fifteen feet on both sides of
the planned corridor;
(2) There must be property adjacent to the planned corridor
with access and capability of development;
(3) The property should contain a minimum of acreage with potential to generate jobs and taxes;
(4) The corridor must be an independent utility with ingress
and egress serving the public on each end;
(5) Preference for assistance shall be given to counties with
a master land use plan but the minimum of a standard corridor
master plan is required; and
(6) No more than half of the total allocation shall be spent
in any one congressional district.
(e)The council and the Division of Highways may enter into
agreements to share the cost of financing projects approved in
accordance with this section from moneys available in the
Infrastructure Road Reserve Account and moneys available from the
State Road Fund. Annually, the council may direct the Water
Development Authority to transfer funds from the Infrastructure
Fund in an amount not to exceed one million dollars to the
restricted account.
Provided, That at no time may the balance of
the restricted account exceed one million dollars
(d) (f) For the purposes of this section, the term "new" means
a road right-of-way being built for the first time.
(e) (g) After the construction of water and sewer lines
adjacent to the new road, these new lines shall be turned over to
existing utilities by expansion of boundaries of public service
districts or shall be main extensions from the municipality.
§31-15A-7a. Tax credit for Infrastructure Road Improvement Reserve Account project expenditures.
(a) There shall be allowed to eligible taxpayers a
nonrefundable credit against the taxes imposed in articles
twenty-one, twenty-three and twenty-four, chapter eleven of this
code. For the purpose of this section, "eligible taxpayer" means
any person subject to the taxes prescribed by article twenty-one,
twenty-three or twenty four, chapter eleven of this code.
(b) The credit shall be available to eligible taxpayers who
contribute to the completion of a project for water or sewer lines
that is receiving moneys from the Infrastructure Road Improvement
Reserve Account. The maximum amount of credit allowable under this
section is an amount equal to the amount approved by the council
pursuant to subsection (c) of this section.
(c)(1) Within sixty days following a determination by the
consulting engineer for a project for water or sewer lines that is
receiving moneys from the Infrastructure Road Improvement Reserve
Account that the project is substantially complete, an eligible
taxpayer shall submit to the council the amount contributed to the
project, along with all invoices and documentation supporting the
amount;
(2) The council shall review the information submitted
pursuant to subdivision (1) of this subsection and determine the
amount the eligible taxpayer may take for the credit, if any:
Provided, That the maximum amount the council may approve for any one project is the amount provided by the Infrastructure Road
Improvement Reserve Account for the project or two million dollars,
whichever is less:
Provided, however, That if more than one
eligible taxpayer seeks and obtains authorization from the council
to take a credit for the same project, the eligible taxpayers shall
take a pro rata share up to the maximum amount.
(d) An eligible taxpayer shall not take a credit pursuant to
this subsection until:
(1) The consulting engineer for the project has indicated in
writing that the project is substantially complete; and
(2) The council has approved any amounts submitted pursuant to
subsection (c) of this section.
(e) The amount of credit allowable must be taken over a
five-year period, at the rate of one fifth of the amount thereof
per taxable year, beginning with the taxable year in which the
provisions of subsection (c) of this section are satisfied, unless
the eligible taxpayer elects to delay the beginning of the
five-year period until the next succeeding taxable year.
(f)
Application of annual credit allowance. -- The amount of
credit as determined under subsection (c) of this section is
allowed as a credit against the eligible taxpayer's state tax
liability applied as provided in subdivisions (1) through (3),
inclusive, of this subsection, and in that order.
(1)
Business franchise tax. -- The credit must first be applied to reduce the taxes imposed by article twenty-three,
chapter eleven of this code for the taxable year.
(2)
Corporation net income taxes. -- After application of
subdivision (1) of this subsection, any unused credit is next
applied to reduce the taxes imposed by article twenty-four, of
chapter eleven of this code for the taxable year.
(3)
Personal income taxes. --
(A) If the eligible taxpayer making the contribution is an
electing small business corporation (as defined in Section 1361 of
the United States Internal Revenue Code of 1986, as amended), a
partnership, a limited liability company that is treated as a
partnership for federal income tax purposes or a sole
proprietorship, then any unused credit (after application of
subdivisions (1) and (2) of this subsection) is allowed as a credit
against the taxes imposed by article twenty-one, chapter eleven of
this code on the income from business or other activity subject to
tax under article twenty-three, chapter eleven of this code or on
income of a sole proprietor attributable to the business.
(B) Electing small business corporations, limited liability
companies, partnerships and other unincorporated organizations
shall allocate the credit allowed by this article among its members
in the same manner as profits and losses are allocated for the
taxable year.
(C) If the eligible taxpayer making the contribution is an individual and is not subject to the taxes imposed in articles
twenty-three and twenty-four of chapter eleven of this code and
subdivision (3)(of this section) is inapplicable to the eligible
taxpayer, then the credit may be taken by the eligible taxpayer
against the taxes imposed by article twenty-one, chapter eleven of
this code for the taxable year.
(5) No credit is allowed under this section against any
employer withholding taxes imposed by article twenty-one of chapter
eleven of this code.
(g)
Unused credit. -- If any credit remains after application
of subsection (f) of this section, the amount thereof is forfeited.
No carryback to a prior taxable year is allowed for the amount of
any unused portion of any annual credit allowance.
§31-15A-10a. Tax credit for contributions to completion of
projects and associated road construction.
(a) There is allowed to eligible taxpayers a nonrefundable
credit against the taxes imposed in articles twenty-one,
twenty-three and twenty-four, chapter eleven of this code. For the
purpose of this section, "eligible taxpayer" means any person
subject to the taxes prescribed by articles twenty-one,
twenty-three or twenty-four, chapter eleven of this code.
(b) The credit shall be available to eligible taxpayers who
contribute to the completion of a project that the council has
recommended for a loan, loan guarantee, grant or other assistance pursuant to section ten of this article or to the completion of a
road associated with such project. The maximum amount of credit
allowable under this section is an amount equal to the amount
approved by the council pursuant to subsection (c) of this section.
(c)(1) Within sixty days following a determination by the
consulting engineer for a project that the council has recommended
for a loan, a loan guarantee, grant or other assistance pursuant to
section ten of this article or with a road associated with such a
project that the project or road is substantially complete, an
eligible taxpayer shall submit to the council the amount
contributed to the completion of the road or project, along with
all invoices and documentation supporting such amount;
(2) The council shall review the information submitted
pursuant to subdivision (1) of this subsection and determine the
amount the eligible taxpayer may take for the credit, if any:
Provided, That the maximum amount of credit for all eligible
taxpayers the council may approve for any one project or associated
road is the amount provided pursuant to the recommendation by the
council pursuant to section ten of this article or two million
dollars, whichever is less:
Provided, however, That if more than
one eligible taxpayer seeks and obtains authorization from the
council to take a credit for the same project or associated road,
the eligible taxpayers shall take a pro rata share up to the
maximum amount.
(d) An eligible taxpayer shall not take a credit pursuant to
this subsection until:
(1) The consulting engineer for the project or road has
indicated in writing that the project or associated road is
substantially complete; and
(2) The council has approved any amounts pursuant to
subsection (c) of this section.
(e) The amount of credit allowable must be taken over a
five-year period, at the rate of one fifth of the amount thereof
per taxable year, beginning with the taxable year in which the
provisions of subsection (c) of this section are satisfied unless
the eligible taxpayer elects to delay the beginning of the
five-year period until the next succeeding taxable year.
(f)
Application of annual credit allowance. -- The amount of
credit as determined under subsection (c) of this section is
allowed as a credit against the eligible taxpayer's state tax
liability applied as provided in subdivisions (1) through (3),
inclusive, of this subsection, and in that order.
(1)
Business franchise tax. -- The credit shall first be
applied to reduce the taxes imposed by article twenty-three,
chapter eleven of this code for the taxable year.
(2)
Corporation net income taxes. -- After application of
subdivision (1) of this subsection, any used credit is next applied
to reduce the taxes imposed by article twenty-four, chapter eleven of this code for the taxable year.
(3)
Personal income taxes. --
(A) If the eligible taxpayer making the contribution is an
electing small business corporation (as defined in Section 1361 of
the United States Internal Revenue Code of 1986, as amended), a
partnership, a limited liability company that is treated as a
partnership for federal income tax purposes or a sole
proprietorship, then any unused credit (after application of
subdivisions (1) and (2) of this subsection) is allowed as a credit
against the taxes imposed by article twenty-one, chapter eleven of
this code on the income from business or other activity subject to
tax under article twenty-three, chapter eleven of this code or on
income of a sole proprietor attributable to the business.
(B) Electing small business corporations, limited liability
companies, partnerships and other unincorporated organizations
shall allocate the credit allowed by this article among its members
in the same manner as profits and losses are allocated for the
taxable year.
(C) If the eligible taxpayer making the contribution is an
individual and is not subject to the taxes imposed in articles
twenty-three and twenty four, chapter eleven of this code and
paragraph (B) subdivision (3)of this subsection is inapplicable to
the eligible taxpayer, then the credit may be taken by the eligible
taxpayer against the taxes imposed by article twenty-one, chapter eleven of this code for the taxable year.
(4) No credit is allowed under this section against any
employer withholding taxes imposed by article twenty-one, chapter
eleven of this code.
(g)
Unused credit. -- If any credit remains after application
of subsection (f) of this section, the amount thereof is forfeited.
No carryback to a prior taxable year is allowed for the amount of
any unused portion of any annual credit allowance.