H. B. 4692
(By Delegates Michael, Doyle and Facemeyer)
[Passed March 12, 1998; in effect ninety days from passage.]
AN ACT to amend and reenact section eight, article one, chapter
five-e of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to reducing the maximum tax
credits available for qualified West Virginia capital
companies and deleting restrictions requiring that the
authority only accept applications from those companies which
certify that their entire capital base will be invested in one
or more small business investment corporations.
Be it enacted by the Legislature of West Virginia:
That section eight, article one, chapter five-e of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, be
amended and reenacted to read as follows:
ARTICLE 1. WEST VIRGINIA CAPITAL COMPANY ACT.
§5E-1-8. Tax credits.
(a) The total amount of tax credits authorized for a single
qualified company may not exceed two million dollars.
Capitalization of the company may be increased pursuant to rule of
(b) The total credits authorized by the authority for all
companies may not exceed a total of ten million dollars each fiscal
year: Provided, That for the fiscal year beginning on the first
day of July, one thousand nine hundred ninety-seven, the total
credits authorized for all companies may not exceed a total of five
million five hundred thousand dollars: Provided, however, That for
the fiscal year beginning on the first day of July, one thousand
nine hundred ninety-eight, the total credits authorized for all
companies may not exceed a total of six million dollars:: Provided
further, That the capital base of any such qualified company shall
be invested in accordance with the provisions of this article. The
authority shall allocate these credits to qualified companies in
the order that said companies are qualified.
(c) Any investor, including an individual, partnership or
corporation who makes a capital investment in a qualified West
Virginia capital company, is entitled to a tax credit equal to
fifty percent of the investment, except as otherwise provided in
this section or in this article. The credit allowed by this
article shall be taken after all other credits allowed by chapter
eleven of this code. It shall be taken against the same taxes and
in the same order as set forth in subsections (c) through (i),
inclusive, section five, article thirteen-c, chapter eleven of this
code. The credit for investments by a partnership or by a
corporation electing to be treated as a Subchapter S corporation may be divided pursuant to election of partners or shareholders.
(d) The tax credit allowed under this section is to be
credited against the taxpayer's tax liability for the taxable year
in which the investment in a qualified West Virginia capital
company is made. If the amount of the tax credit exceeds the
taxpayer's tax liability for the taxable year, the amount of the
credit which exceeds the tax liability for the taxable year may be
carried to succeeding taxable years until used in full, or until
forfeited: Provided, That: (i) Tax credits may not be carried
forward beyond fifteen years; and (ii) tax credits may not be
carried back to prior taxable years. Any tax credit remaining
after the fifteenth taxable year is forfeited.
(e) The tax credit provided for in this section is available
only to those taxpayers whose investment in a qualified West
Virginia capital company occurs after the first day of July, one
thousand nine hundred eighty-six.
(f) The tax credit allowed under this section may not be used
against any liability the taxpayer may have for interest, penalties
or additions to tax.
(g) Notwithstanding any provision in this code to the
contrary, the tax commissioner shall publish in the state register
the name and address of every taxpayer, and the amount, by
category, of any credit asserted under this article. The
categories by dollar amount of credit received shall be as follows:
(1) More than $1.00, but not more than $50,000;
(2) More than $50,000, but not more than $100,000;
(3) More than $100,000, but not more than $250,000;
(4) More than $250,000, but not more than $500,000;
(5) More than $500,000, but not more than $1,000,000;
(6) More than $1,000,000.