Senate Bill No. 98
(By Senators Ross, Minard, Sprouse, Love, Sharpe, Dempsey, Unger,
Facemyer, Guills, Jenkins, Smith, Weeks, Deem, Hunter and Rowe)
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[Introduced January 10, 2003; referred to the Committee on
Economic Development; and then to the Committee on Finance.]
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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-t, 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-t, to read as follows:
ARTICLE 13T. SMALL BUSINESS TAX CREDIT.
§11-13T-1. Short title.
This article may be cited as the "West Virginia Small Business
Tax Credit Act."
§11-13T-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. The tax commissioner may adjust these amounts
based on the cost-of-living index for that calendar year beginning
on the first day of January, two thousand four, and each subsequent
January.
(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 any amount paid to the United
States small business administration as a guaranty fee that results
from obtaining small business administration guaranteed financing.
(c) The credit may be used by the small business one time
within three years from the date that the fee is incurred. The
credit may not reduce the tax below any minimum tax prescribed
under the specified articles. The credit may be claimed only by
the small business that is the primary obligor in the financing
transaction and that actually paid the guaranty fee.
§11-13T-3. Tax commissioner to propose legislative rules;
effective date.
(a) The tax commissioner shall propose rules for legislative approval prescribing the method and documentation to be used to
claim the credit in accordance with the provisions of article
three, chapter twenty-nine of the code. The commissioner may
initially promulgate 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
three.
NOTE: The purpose of this bill is to give small businesses a
tax credit equal to any guaranty fee paid to the Small Business
Administration in order to obtain SBA financing.
This article is new; therefore, strike-throughs and
underscoring have been omitted.