Senate Bill No. 174
(By Senator Tomblin, Mr. President, By Request)
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[Introduced February 19, 2001; referred to the Committee on
Finance.]
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A BILL to amend and reenact section eight-e, article twenty-one,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to amend article
twenty-four of said chapter by adding thereto a new section,
designated section twenty-three-g, all relating to the
application of tax credits for qualified rehabilitation
buildings investment; and allowing for the distribution of the
credits to owners of the entities earning the credits.
Be it enacted by the Legislature of West Virginia:
That section eight-e, article twenty-one, chapter eleven of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; and that article twenty-four of
said chapter be amended by adding thereto a new section, designated section twenty-three-g, all to read as follows:
PART I. GENERAL.
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-8e. Carryback, carryforward.
(a) Any unused portion of the credit for qualified
rehabilitated buildings investment authorized by section eight-a of
this article which may not be taken in the taxable year to which
the credit applies shall qualify for carryback and carryforward
treatment subject to the identical general provisions under §39,
Title 26 of the United States Code, as amended: Provided, That the
amount of such credit taken in a taxable year shall in no event
exceed the tax liability due for the taxable year.
(b) Effective for taxable years beginning on and after the
first day of January, two thousand one, credits granted to an
electing small business corporation (S corporation), limited
partnership, general partnership, limited liability company or
multiple owners of property shall be passed through to the
shareholders, partners, members or owners, either pro rata or
pursuant to an agreement among the shareholders, partners, members
or owners documenting an alternative distribution method. The
department of tax and revenue shall promulgate procedural rules
that provide the method of reporting the alternative method of distribution authorized by this section.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-23g. Application of credits.
Effective for taxable years beginning on and after the first
day of January, two thousand one, the credits granted, pursuant to
section twenty-three-a of this article, to an electing small
business corporation (S corporation), limited partnership, general
partnership, limited liability company or multiple owners of
property shall be passed through to the shareholders, partners,
members or owners, either pro rata or pursuant to an agreement
among the shareholders, partners, members or owners documenting an
alternative distribution method. Taxpayers eligible for the
credits may transfer, sell or assign the credits.
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(NOTE: The purpose of this bill is to allow application of
tax credits for qualified rehabilitation buildings investment and
for the distribution of the credits to owners of the entities
earning the credits.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§11-24-23g is new; therefore, strike-throughs and
underscoring have been omitted.)
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FINANCE COMMITTEE AMENDMENTS
On page two, section eight-e, line eight, by striking out the
words "shall qualify" and inserting in lieu thereof the word
"qualifies";
On page two, section eight-e, line eleven, by striking out the
word "such" and inserting in lieu thereof the word "the";
On page two, section eight-e, line twenty-one, by striking out
the words "department of tax and revenue" and inserting in lieu
thereof the words "tax commissioner";
And,
On page two, section eight-e, line twenty-one, after the word
"rules" by inserting the words "in accordance with article three,
chapter twenty-nine-a of this code".
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