Senate Bill No. 730
(By Senators Ross, Helmick, Anderson and McKenzie)
[Introduced February 23, 1998; referred to the
Committee on Small Business; and then to the Committee on
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 taxation; and providing a small business tax
credit equal to any guaranty fee paid to the small business
administration to obtain small business administration
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. SMALL BUSINESS TAX CREDIT.
§11-13N-1. Short title.
This article may be cited as the "West Virginia Small
Business Tax Credit Act."
§11-13N-2. Small business tax credit.
For the purposes of this article, a "small business" is any
corporation, partnership, sole proprietorship or other business
entity which has an annual payroll on one million five thousand
dollars or less, or annual gross sales on not more than five
million dollars. Beginning the first day of January, one
thousand nine hundred ninety-nine, and each January thereafter,
the tax commissioner shall prescribe amounts which shall apply,
in place of the amounts stated in this section, during that
calendar year. These amounts shall be prescribed by increasing
the amount of each by the cost-of-living adjustment for that
Each small business formed under the laws of the state of
West Virginia and operating within the state is entitled to claim
as a credit against the tax imposed by this chapter for
businesses any amount paid to the United Sates small business
administration (SBA) as a guaranty fee pursuant to the obtaining
of SBA guaranteed financing. This credit shall be applicable
only to the tax year in which the guaranty fee was paid. The
credit may not reduce the tax below the minimum tax where a minimum tax is provided under this chapter and may only be
claimed by the small business which is the primary obligor in the
financing transaction and which actually paid the guaranty fee.
NOTE: The purpose of this bill is to give small businesses
a tax credit equal to any guaranty fee they pay to the Small
Business Administration in order to obtain SBA financing.
Article 13N is new; therefore, strike-throughs and
underscoring have been omitted.