Senate Bill No. 629

(By Senators Kirkendoll, Unger, Browning and Klempa)

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[Introduced February 17, 2012; referred to the Committee on Finance.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §11-13CC-1 and §11-13CC-2, all relating to the establishment of a tax credit for improvements to Class II residential property; limiting the tax credit to $500 per year; providing for a carryover; and granting rule-making authority.

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 article, designated §11-13CC-1 and §11-13CC-2, all to read as follows:

ARTICLE 13CC. RESIDENTIAL IMPROVEMENT TAX CREDIT.

§11-13CC-1. Amount of credit.

    Any taxpayer who makes improvements to Class II residential property located in this state, owned by the taxpayer and used as his or her residence after July 1, 2012, shall be allowed a credit against the taxes imposed in article twenty-one of this chapter in an amount equal to thirty percent of the cost of the improvements up to a maximum amount of $500.

§11-13CC-2. Carryover credit allowed; Tax Commissioner to promulgate rules.

    If the amount of the credit exceeds the taxpayer’s liability for the taxable year, the amount which exceeds the tax liability may be carried over and applied as a credit against the tax liability of the taxpayer pursuant to article twenty-one of this chapter to each of the next taxable years unless sooner used.

    The State Tax Commissioner shall promulgate legislative rules pursuant to chapter twenty-nine-a of this code regarding the applicability, method of claiming of the credit, recapture of the credit and documentation necessary to claim the credit allowed by this article. No taxpayer may take a credit pursuant to this article for improvements made after July 1, 2016.

    NOTE: The purpose of this bill is to permit a tax credit for improvements to Class II residential property. The bill limits the tax credit to $500 per year, provides for a carryover and ends in 2016. The bill also grants rule-making authority.

    This article is new; therefore, strike-throughs and underscoring have been omitted.