H. B. 2355
(By Delegates Fleischauer, Susman, Hubbard,
Faircloth, Douglas and Kominar)
[Introduced February 20, 2001; referred to the
Committee on Industry and Labor, Economic Development and Small
Business then Finance.]
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-p,
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
financing.
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-p, to
read as follows:
ARTICLE 13P. SMALL BUSINESS TAX CREDIT.
§11-13P-1. Short title.
This article may be cited as the "West Virginia Small
Business Tax Credit Act."
§11-13P-2. Small business tax credit.
(a) For the purposes of this article, a "small business" is
any corporation, partnership, sole proprietorship or other
business entity which has an annual payroll of one million five
thousand dollars or less, or annual gross sales of not more than
five million dollars.
(b) 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 articles twenty-one,
twenty-three and twenty-four of this chapter, for any amount paid
to the United States small business administration as a guaranty
fee pursuant to the obtaining of small business administration
guaranteed financing.
(c) This credit is available as a one-time credit to be used
within five years from the date that the fee is incurred. The
credit may be used at the discretion of the small business
incurring the fee. The credit may not reduce the tax below the
minimum tax where a minimum tax is provided under the specified
articles 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.
§11-13P-3. Tax commissioner to propose legislative rules;
effective date.
(a) The tax commissioner shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine of this code regarding the method of claiming
the credit and documentation necessary to claim the credit. The
commissioner may promulgate the initial rules as emergency rules
in order to facilitate the implementation of the provisions of
this article.
(b) The credit allowed by this section applies to tax years
beginning after the thirty-first day of December, two thousand
one.
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.
This article is new; therefore, strike-throughs and
underscoring have been omitted.