Senate Bill No. 504
(By Senators McCabe, Plymale, Jenkins, Foster and Unger)
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[Introduced March 10, 2005; referred to the Committee on Economic
Development; then to the Committee on Education; and then to the
Committee on Finance.]
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A BILL to amend and reenact §18B-13-4 of the Code of West Virginia,
1931, as amended, relating to technical changes concerning
high-tech research zones, parks and technology centers; and
tax incentives relating thereto.
Be it enacted by the Legislature of West Virginia:
That §18B-13-4 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 13. HIGHER EDUCATION -- INDUSTRY PARTNERSHIPS.
§18B-13-4. High-Tech research zones, parks and technology
centers; tax incentives.
(a) The state development council shall work with the county
commissions, the municipalities and local development authorities
where state colleges and universities are located and shall develop
a grant plan and program for the establishment and operation of qualifying High-Tech 2000 research zones, parks and technology
centers on or near the campuses of selected universities and
colleges to attract local business and industry engaged in science
and technology-related research and development.
The state development council shall coordinate the
development of such plan and grant program, which shall include
qualifications for eligible that are to be met in order to receive
approval by the council as a research zone, park or technology
center or as a qualified business. High-Tech 2000 research zones,
parks and research centers and which Those qualifications shall
require a minimum partnership commitment from one or more qualified
businesses in the private sector either in the construction,
operation or location of the research zone, park or technology
center. The council shall designate the particular geographical
area comprising the research zone, park or technology center.
research parks or zones or technology centers; and the
The West Virginia Economic Development Authority is authorized
shall have authority to enter into agreements with State
Institutions of Higher Education, private developers or other
interested businesses or persons to acquire, finance, construct,
operate, own, lease or otherwise manage any research zone, park or
zone technology center and to collect rentals or other forms of
payment for the operation of the research zones, parks or zones or
technology centers.
The West Virginia Economic Development Authority is hereby
authorized either singularly singly or in conjunction with any
county commission, municipality or local development authority, to
issue special High-Tech 2000 bonds for the purpose of this section,
including, but not limited to, special project revenue bonds and
special user bonds limited to the actual cost of construction and
start-up of any qualifying and approved research park or zone
zones, parks or technology centers, and improvements necessary
thereto, pursuant to article twelve-b, chapter eighteen of this
code.
(b) Notwithstanding any other provision of this code article
to the contrary no exemption, credit or deferral under this
subsection is available after the thirty-first day of December, two
thousand three. relating to any other exemptions or credits to
which any business may be entitled under this code, the The
following exemptions tax incentives in subsection (c), rather than
those in this subsection shall only apply to an approved qualified
business participating in the construction, operation or location
of a qualified, approved High-Tech 2000 research park or zone zone,
park or technology center approved after the thirty-first day of
December, two thousand three:
(1) The enterprise zone tax exemptions as provided in section
five, article two-b, chapter five-b of this code prior to their
repeal in one thousand nine hundred ninety-seven;
(2) A tax credit for qualified business, in the amount of the
workers' compensation premium paid in accordance with article two,
chapter twenty-three of this code, which credit shall be credited
against any corporate net income tax or personal income tax of the
qualified business or liability of the owners of the qualified
business which is a proprietorship or a partnership;
(3) The deferral for qualified business of all state corporate
net income tax, business and occupation tax, telecommunications
tax, severance tax, business franchise tax or other state income
tax liability for the start-up period of the business not to exceed
three years, and qualified business shall be entitled to an
exemption from any such deferred tax if such business both employs
at least seven persons on a full-time basis as of the due date of
the deferred tax liability, and the qualified business maintains an
average employment of at least seven full-time employees over the
last two years of the three year start-up period.
Notwithstanding any other provision herein to the contrary,
the amount of total credits and deferrals allowable under this
section or section five, article two-b, chapter five-b of this
code, shall not exceed two and one-half million dollars in any one
fiscal year for all eligible businesses: Provided, That the
credits allowed by this section are nonrefundable so that a
taxpayer shall not claim a total credit amount that reduces the
taxpayer's tax liability to less than zero.
(c) For taxable years beginning on and after the first day of
January, two thousand five, any qualified business approved by the
council on or after the first day of January, two thousand four,
shall be deemed to be: (1) A business eligible for economic
opportunity tax credit entitlement pursuant to section nineteen,
article thirteen-q, chapter eleven of the code, and entitled to the
twenty percent new jobs percentage under section nine of that
article if it creates at least seven new jobs in a research zone,
park or technology center; (2) an eligible taxpayer for purposes of
the strategic research and development credit provided under
article thirteen-r, chapter eleven of the code; (3) an industrial
taxpayer for purposes of the manufacturing investment tax provided
under article thirteen-s, chapter eleven of the code, if it is
primarily engaged in manufacturing related to research and
development; and (4) entitled to priority for approval of
refundable credit for the small qualified research and development
company credit under section six, article thirteen-r, chapter
eleven of the code ahead of eligible taxpayers that are not
qualified businesses under subsection (d) of this section:
Provided, That the qualified business otherwise meets the
requirements for those credits.
(d) As used in this article:
(1) "West Virginia State Development Council," "State
Development Council" and "Council" mean the Council for Community and Community and Economic Development created under article five,
chapter five-b of this code.
(2) "Qualified business" means a business registered to do
business in this state which is engaged in science and
technology-related "manufacturing" (as defined in section three,
article thirteen-s, chapter eleven of this code) or science and
technology-related "Research and Development" (as defined in
section three, article thirteen-q, or section three, article
thirteen-r, chapter eleven of this code) within a research zone,
park or technology center.
NOTE: The purpose of this bill is to make technical changes
concerning High-Tech research zones, parks and technology centers
and tax incentives relating thereto.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.