H. B. 2453
(By Delegates J. Miller and Cowles)
[Introduced January 13, 2010; referred to the
Committee on Education then Finance.]
A BILL to amend and reenact §11-21-8 of the Code of West Virginia,
1931, as amended, relating to personal income tax; tax credits
for scholarship donations.
Be it enacted by the Legislature of West Virginia:
That §11-21-8 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-8. Credits against tax.
(a)
Business and occupation tax credit.- A credit shall be
allowed against the tax imposed by section three of this article
equal to the amount of the liability of the taxpayer for the
taxable year for any tax imposed under article thirteen, chapter
eleven of this code:
Provided, That the amount of such business
and occupation tax credit shall not exceed the portion of the tax imposed by this article which is attributable to the West Virginia
taxable income derived by the taxpayer for the taxable year from
the business or occupation with respect to which said tax under
article thirteen was imposed. In case the West Virginia taxable
income of a taxpayer includes income from a partnership, estate,
trust or a corporation electing to be taxed under subchapter S of
the Internal Revenue Code of 1954, as amended, a part of any tax
liability of the partnership, estate, trust or corporation under
said article thirteen shall be allowed to the taxpayer, in
computing the credit provided
for by this section, in an amount
proportionate to the income of such partnership, estate, trust or
corporation, which is included in the taxpayer's West Virginia
taxable income.
For purposes of this section, the tax imposed under article
thirteen, chapter eleven of this code shall be the amount of the
liability of the taxpayer for such tax under said article thirteen
computed without reduction for the tax credit for industrial
expansion or revitalization allowed for such year.
(b)
Severance tax credit. -- On and after July 1, 1987, a
credit shall be allowed against the tax imposed by section three of
this article equal to the amount of the liability of the taxpayer
for the taxable year for any tax imposed under article thirteen-a,
chapter eleven of this code:
Provided, That the amount of such
severance tax credit shall not exceed the portion of the tax imposed by this article which is attributable to the West Virginia
taxable income derived by the taxpayer for the taxable year from
the activities with respect to which said tax under article
thirteen-a was imposed. In case the West Virginia taxable income
of a taxpayer includes income from a partnership, estate, trust or
a corporation electing to be taxed under subchapter S of the
Internal Revenue Code of 1954, as amended, a part of any tax
liability of the partnership, estate, trust or corporation under
said article thirteen-a shall be allowed to the taxpayer, in
computing the credit provided
for by this section, in an amount
proportionate to the income of such partnership, estate, trust or
corporation, which is included in the taxpayer's West Virginia
taxable income.
(c)
Expiration of credit. -- The credit authorized in
subsection (b) of this section shall expire and not be authorized
or allowed for any taxable year beginning on or after October 1,
1990.
(d) Scholarship donation credit. -- Donations to scholarship
programs shall be tax deductible. There shall be $1.00 of tax
credit given for every $1.00 donated. There will be no restriction
as to cap on the donation or the credit.
NOTE: The purpose of this bill is to provide a tax credit for
scholarship donations.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would
be added.