H. B. 3095
(By Delegate White)
[Introduced February 15, 2007; referred to the
Committee on Finance
.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-24-11b, relating
to providing tax credits for utility taxpayers with a net
operating loss prior to the thirty-first day of December, two
thousand six.
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 §11-24-11b, to read as
follows:
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-11b. Credit for utility taxpayers with net operating loss
carryovers.
(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 the thirty-first day of December, two thousand
six.
(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 article thirteen of this chapter.
(2) "Eligible taxpayer" also includes 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 (b).
(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 as of the thirty-first day
of December, two thousand six.
(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 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.
NOTE: The purpose of this bill is to create a nonrefundable
tax credit to provide transitional relief to eligible taxpayers who
incurred West Virginia net operating loss carryovers prior to the
thirty-first day of December, two thousand six, to ensure that the
value of such net operating loss carryovers are not impaired by the
corporate net income tax rate changes enacted in two thousand six.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.