H. B. 2974

          (By Delegate Walters)
          [Introduced March 19, 2013; referred to the
          Committee on Finance.]




A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-13C-17; and to amend said code by adding thereto a new section, designated §11-24-9d, all relating to a tax deduction allowed for capital expenditures from the corporate net income tax.
Be it enacted by the Legislature of West Virginia:
     That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-13C-17; and that said code be amended by adding thereto a new section, designated §11-24-9d, all to read as follows:
ARTICLE 13C. BUSINESS INVESTMENT AND JOBS EXPANSION TAX CREDIT.
§11-13C-17. Tax deduction for replacing any capital expenditures; __definitions; no carryover.
_____(a) Capital expenditures means funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment including, but not limited to, repairing a roof, building a new factory or purchasing new computers.
_____(b) A tax deduction is allowed against the primary tax imposed by this code equal to the amount of money spent by a business or small business, as defined in this article, for all capital expenditures.
_____(c) A business or small business must apply the tax deduction to the tax year in which the capital expenditure was made.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-9d. Tax deduction for replacing any capital expenditures; definitions; no carryover.
_____(a) Capital expenditures means funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment including, but not limited to, repairing a roof, building a new factory or purchasing new computers.
_____(b) A deduction shall be allowed against the primary tax imposed by this article equal to the amount of money spent by a corporation for all capital expenditures.
_____(c) A corporation must apply the tax deduction to the tax year in which the capital expenditure was made.



_____NOTE: The purpose of this bill is to allow a deduction for all capital expenditures from the corporate net income tax.

     §11-13C-17 and §11-24-9d are new; therefore, they have been completely underscored.