H. B. 2871


(By Delegates Beach, Evans, Willis, Border and Damron)

(Originating in the Committee on

Agriculture and Natural Resources)

[March 28, 1997]





A BILL to amend chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article thirteen-n, relating to allowing a tax credit of two hundred fifty dollars per full-time hourly for eligible taxpayers engaged in new poultry farming or poultry processing operations beginning operation county within this state on or after first day of of July, one thousand nine hundred ninety- seven, and providing an income adjustment for poultry farmers or poultry processors receiving poultry feed by commercial watercraft and unloaded at a port located within this state after the first day of July, one thousand nine hundred ninety-seven.

Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article thirteen-n, to read as follows:
ARTICLE 13N. TAX CREDIT FOR NEW POULTRY FARMING OR PROCESSING OPERATIONS AFTER JULY 1, 1997.
§11-13N-1. Legislative purpose.
 The Legislature finds that the poultry industry is very important to the economy of this state, and that a sound economy is in the public interest and promotes the general welfare of the people of this state. In order to encourage capital investment in this state, through the commencement of new poultry farming or processing operations at a location within this state, after the first day of July, one thousand nine hundred ninety-seven, thereby increasing employment and economic development, there is hereby provided a tax credit for each full-time hourly employee in a poultry farming or processing operation beginning operation at a location within this state on or after the first day of July, one thousand nine hundred ninety-seven, and an income adjustment for poultry farmers or processors receiving poultry feed via commercial watercraft and unloaded at a port located within this state on or after the first day of July, one thousand nine hundred ninety-seven.
 §11-13N-2. Credit allowed; amount and duration of credit; recapture of credit and effective date.
(a) There shall be allowed to eligible taxpayers a credit against the taxes imposed in articles twenty-one, twenty-three and twenty-four of this chapter. For the purpose of this article, "eligible taxpayer" means a person, firm, partnership, corporation or other entity commencing new production or processing of poultry after the first day of July, one thousand nine hundred ninety-seven, within this state and that employs full-time hourly employees. For the purpose of this article, "new production or processing of poultry" means the production or processing of poultry in a new facility beginning operation on or after the first day of July, one thousand nine hundred ninety- seven, and located within the state by a sole proprietorship, partnership, corporation, limited liability company or limited liability partnership. For the purpose of this article, "full- time hourly employee" is defined as an employee working 1,800 hours or more for the eligible taxpayer within a twelve- month period during the eligible taxpayer's tax year. This credit shall be in an amount equal to two hundred fifty dollars for each full-time hourly employee engaged in the production or processing of poultry at a poultry production or processing facility located within this state. This credit shall be allowed annually for eligible taxpayers, and this credit will expire on the first day of July, two thousand and two.
(b) There shall also be allowed to eligible taxpayers an income adjustment of fifty cents for every ton of poultry feed transported by commercial watercraft and unloaded at a port located within this state for delivery to the eligible taxpayer. This income adjustment is only available for the amount of poultry feed used by the eligible taxpayer in the production of poultry. This income adjustment shall be allowed annually for eligible taxpayers, and this income adjustment will expire on the first day of July, two thousand and two.
(c) The tax credit set forth in this article shall apply to personal income tax liabilities, corporation net income tax liabilities and business franchise tax liabilities arising after the first day of July, one thousand nine hundred ninety-seven.
§11-13N-3. Application of credit; limitation of credit; tax
commissioner to promulgate forms and legislative rule; notice of credit.
(a) The tax credit allowed in this article shall be first applied to a taxpayer's business franchise tax liability, and then to either the taxpayer's personal income tax liability or corporation net income tax liability, as the case may be.
(b) The tax credit allowed in this article may not exceed the total tax liability for all state taxes for a given tax year and, if the tax credit exceeds the taxpayer's total tax liability, no refund is allowed. No carryover to a subsequent taxable year or carry back to a prior taxable year is allowed for the amount of any unused portion of this credit.
(c) The state tax commissioner shall propose legislative rules to be promulgated 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 herein allowed.


NOTE: The purpose of this bill is to allow a tax credit of two hundred fifty dollars for each full-time hourly employee of a new poultry producing or processing facility and an income adjustment of fifty cents a ton for poultry feed transported via river and unloaded at a port located within the state, after the first day of July, one thousand nine hundred ninety-seven.