Senate Bill No. 388
(By Senators Sprouse, Scott, Dugan and Sharpe)
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[Introduced March 20, 1997; referred to the Committee
on Finance.]
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A BILL to amend article twenty-four, chapter eleven of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
ten-a, relating to providing a five thousand dollar
corporate net income tax credit for each qualified
unemployed person or welfare recipient that a business
employs.
Be it enacted by the Legislature of West Virginia:
That article twenty-four, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
ten-a, to read as follows:
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-10a. Credit for hiring of qualified unemployed persons and welfare recipients.
(a) For the purpose of this section, the following terms
have the meanings ascribed to them:
"Qualified business" means any person, corporation or other
entity that is engaged in the active conduct of a trade or
business in this state, and who is subject to taxation under the
provisions of this article.
"Qualified individual" means any unemployed person of six
months or greater duration; or any recipient of welfare
assistance, as defined in section two, article one, chapter nine
of this code, of three months or greater duration. The term
"qualified individual" does not include a person who displaces an
employed individual, other than an individual who is discharged
for cause, or does not include an individual employed and who is
closely related to a person who owns, directly or indirectly,
more than fifty percent of the outstanding stock of the business,
or an individual employed and who is closely related to the owner
or owners of an unincorporated business.
"Qualifying employment" means a job, permanent in nature,
that pays at least fifteen thousand dollars per year and provides
basic health insurance.
(b) A qualified business is allowed as a credit against the
net income taxes imposed on it by this article, for any taxable year, five thousand dollars for each qualified individual for
whom it provides qualifying employment during the taxable year,
following the effective date of this section.
This tax credit is nonassignable and may not exceed the
total tax liability of the business with respect to the specific
tax against which the credit is required to be applied.
NOTE: The purpose of this bill is to provide a $5000
corporate net income tax credit for each qualified unemployed
person or welfare recipient that a business employs.
This section is new; therefore, strike-throughs and
underscoring have been omitted.