FISCAL
NOTE
WEST virginia Legislature
2017 regular session
By
[
to the Committee on
A BILL to amend the Code
of West Virginia, 1931, as amended, by adding thereto a new section, designated
§11-13Q-5a, relating to establishing a tax credit for new businesses that locate
in the state; setting forth how the credit is determined; establishing the
conditions that must be met to qualify for the credit; and defining terms.
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 §11-13Q-5a, to
read as follows:
ARTICLE 13Q. ECONOMIC OPPORTUNITY TAX CREDIT.
§11-13Q-5a. Credit allowed for locating new businesses in
this state.
(a) Credit allowed. -- A corporation that establishes
a new business in this state and employs, on a full-time basis, in the state,
at least fifteen people, who are domiciled in this state, is allowed credit
under this article, the amount of which is determined as provided in subsection
(b) of this section. The restrictions set forth in subsection (a), section
nineteen of this article do not apply to the credit for new businesses allowed
under this section.
(b) Determination of credit. -- The amount of credit
allowed by subsection (a) is determined, at the election of the taxpayer:
(1) By multiplying the taxpayer's adjusted qualified investment by its new jobs percentage
(as determined under section nine of this article); or
(2) By multiplying the taxpayer's adjusted qualified investment by ten percent.
(c) Notwithstanding any other provision of this article to
the contrary:
(1) New jobs created in this state by location of a new
business may include jobs created in this state within twelve months before or
after the month in which the qualified investment in the new business location
is placed into service or use in this state by:
(A) Relocation or transfer of employees of the corporation or
employees of a related corporation or related person from an out-of-state
location to the location of a new business in this state, who: (i) Are or
become employees of the corporation within twelve months before or after the
month in which the qualified investment in the new business is placed into
service or use in this state; and (ii) whose regular place of work is in this
state; or
(B) New employees of the corporation whose regular place of work
is in this state.
(2) Multiple year projects certified under section six of
this article may be allowed for locating new businesses under this section.
(d) Application of credit. -- The credit allowed by
this section is applied in the manner prescribed in section seven of this
article. However, the amount of
corporation net income taxes against which the credit allowed by this section
may be applied is the sum of the corporation net income tax due on adjusted federal
taxable income allocated to this state under section seven, article twenty-four
of this chapter, plus that portion of the corporation net income tax due on
adjusted federal taxable income apportioned to this state under section seven,
article twenty-four of this chapter, that is further apportioned to the
qualified investment using the payroll factor provided in subdivision (1),
subsection (h), section seven of this article or an alternative means of
apportionment as prescribed by the commissioner under section seven of this
article. For all other purposes, the
credit allowed by this section is treated as credit allowed by section four of
this article.
(e) Definitions. -- For purposes of this section:
"Adjusted qualified investment" means the
taxpayer's qualified investment in the new business as determined under section
eight of this article and rules of the commissioner.
"The corporation" means the new business that
locates in the state.
NOTE: The purpose of this bill is to establishing a
tax credit for new businesses that locate in the state. The bill sets forth how the credit is
determined. The bill establishes the
conditions that must be met to qualify for the credit. The bill defines terms.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.