H. B. 4543
(By Mr. Speaker, Mr. Kiss and Delegates Martin,
Michael,
Doyle and Trump)
[Introduced February 15, 2000; referred to the
Committee on Finance.]
A BILL to amend and reenact section eight-e, article twenty-one,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to amend article
twenty-four of said chapter, by adding thereto a new section,
designated section twenty-three-g, all relating to the
application of tax credits for qualified rehabilitation
buildings investment; and allowing for the distribution of the
credits to owners of the entities earning the credits.
Be it enacted by the Legislature of West Virginia:
That section eight-e, article twenty-one, chapter eleven of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; and that article twenty-four of
said chapter, be amended by adding thereto a new section, designated section twenty-three-g, all to read as follows:
PART I. GENERAL.
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-8e. Carryback, carryforward; application of credits.
(a) Any unused portion of the credit for qualified
rehabilitated buildings investment authorized by section eight-a of
this article which may not be taken in the taxable year to which
the credit applies shall qualify qualifies for carryback and
carryforward treatment subject to the identical general provisions
under §39, Title 26 of the United States Code, as amended.
Provided, That However, the amount of such the credit taken in a
taxable year shall in no event may not exceed the tax liability due
for the taxable year.
(b) Effective for taxable years beginning on and after the
first day of January, two thousand, credits granted to an electing
small business corporation (S corporation), limited partnership,
general partnership, limited liability company or multiple owners
of property shall be passed through to the shareholders, partners,
members or owners, either pro rata or pursuant to an executed
agreement among the shareholders, partners, members or owners
documenting an alternative distribution method. Taxpayers eligible for the credits may transfer, sell or assign the credits.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-23g. Application of credits.
Effective for taxable years beginning on and after the first
day of January, two thousand, the credits granted, pursuant to
section twenty-three-a of this article, to an electing small
business corporation (S corporation), limited partnership, general
partnership, limited liability company or multiple owners of
property shall be passed through to the shareholders, partners,
members or owners, either pro rata or pursuant to an executed
agreement among the shareholders, partners, members or owners
documenting an alternative distribution method. Taxpayers eligible
for the credits may transfer, sell or assign the credits.
NOTE: The purpose of this bill is to allow the tax credits for
qualified rehabilitation buildings investment to be passed through
to the shareholders, partners, members or owners of the entity
making the investment.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§11-24-23g is new; therefore, strike-throughs and underscoring
have been omitted.