sb90 intr

Senate Bill No. 90
(By Senator Minear, Deem and Caldwell)
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[Introduced February 15, 2001; referred to the Committee on Finance.]
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A BILL to amend article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section fifteen-a; and to amend article twenty-four of said chapter by adding thereto a new section, designated section eleven-b, all relating to personal income and corporation net income tax credits; and allowing a credit against a taxpayer's tax liability for contributions to community foundations.

Be it enacted by the Legislature of West Virginia:

That article twenty-one, 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 fifteen-a; and that article twenty-four of said chapter be amended by adding thereto a new section, designated section eleven-b, all to read as follows:

ARTICLE 21. PERSONAL INCOME TAX.

§11-21-15a. Credit for contribution to qualified community
foundation.

A taxpayer is allowed a credit, against the tax imposed by the provisions of this article, of fifty percent of the amount the taxpayer contributes during the taxable year to an endowment fund of a community foundation if a contribution to that entity is tax deductible for the donor under the Internal Revenue Code.

For a taxpayer other than a resident estate or trust, the credit allowed by this section for a contribution to a community foundation may not exceed one hundred dollars, or two hundred dollars for a husband and wife filing a joint return.

For a resident estate or trust, the credit allowed by this section for a contribution to a community foundation may not exceed ten percent of the taxpayer's tax liability for the tax year before claiming any credits allowed by this section or five thousand dollars, whichever is less.

The credits allowed by this section are nonrefundable so that a taxpayer may not claim under this section a total credit amount that reduces the taxpayer's tax liability to less than zero.

As used in this section, "community foundation" means an organization that applies for certification on or before the first day of April of the tax year for which the taxpayer is claiming the credit and that the department of tax and revenue certifies for that tax year as meeting all of the following requirements:

(a) Qualifies for exemption from federal income taxation under section 501(c)(3) of the Internal Revenue Code;

(b) Supports a broad range of charitable activities within a specific geographic area of this state that it serves, including a municipality or county;

(c) Maintains an ongoing program to attract new endowment funds by seeking gifts and bequests from a wide range of potential donors in the community or area served;

(d) Is publicly supported as defined by the regulations of the United States department of the treasury, 26 C.F.R. 1.170A-9(e)(10);

(e) Is not a supporting organization as defined under section 509(a)(3) of the Internal Revenue Code and the regulations of the United States department of the treasury, 26 C.F.R. 1.509(a)-4 and 1.509d(a)-5;

(f) Meets the requirements for treatment as a single entity contained in the regulations of the United States department of the treasury, 26 C.F.R. 1.170A-9(e)(11); and

(g) Is incorporated or established as a trust before the first day of September of the year immediately preceding the tax year for which the credit is claimed.
ARTICLE 24. CORPORATION NET INCOME TAX.

§11-24-11b. Credit for contributions to community foundations.

A taxpayer who does not claim a credit under the provisions of section fifteen-a, article twenty-one, chapter eleven of this code is allowed a credit, against the tax imposed by the provisions of this article, of fifty percent of the amount the taxpayer contributes during the taxable year to an endowment fund of a community foundation if a contribution to that entity is tax deductible for the donor under the Internal Revenue Code.

The credit allowed by this section for a contribution to a community foundation may not exceed five percent of the taxpayer's tax liability for the tax year before claiming any credits allowed by this section or five thousand dollars, whichever is less.

The credits allowed by this section are nonrefundable so that a taxpayer may not claim under this section a total credit amount that reduces the taxpayer's tax liability to less than zero.

(a) Qualifies for exemption from federal income taxation under section 501(c)(3) of the Internal Revenue Code;

(b) Supports a broad range of charitable activities within a specific geographic area of this state that it serves, including a municipality or county;

(c) Maintains an ongoing program to attract new endowment funds by seeking gifts and bequests from a wide range of potential donors in the community or area served;

(d) Is publicly supported as defined by the regulations of the United States department of the treasury, 26 C.F.R. 1.170A-9(e)(10);

(f) Meets the requirements for treatment as a single entity contained in the regulations of the United States department of the treasury, 26 C.F.R. 1.170A-9(e)(11); and

(g) Is incorporated or established as a trust before the first day of September of the year immediately preceding the tax year for
which the credit is claimed.

NOTE: The purpose of this bill is to allow a credit against the West Virginia personal income tax and corporation net income tax liability for taxpayers who contribute to community foundations.

§§11-21-15a and 11-24-11b are new; therefore, strike-throughs and underscoring have been omitted.