(b) For purposes of this article, the term:
(1) "Certified eligible safety property" means eligible safety property in which an eligible taxpayer has made qualified investment for which credit has been certified under this article.
(2) "Coal mining company" means:
(A) Any person subject to tax imposed on the severance of coal by section three, article thirteen-a of this chapter; or
(B) Any person working as a contract miner of coal, which mines coal in this state, under contract with a person subject to tax imposed on the severance of coal by section three, article thirteen-a of this chapter.
(3) "Director" means the Director of the Office of Miners' Health, Safety and Training or West Virginia Office of Miners' Health, Safety and Training established under article one, chapter twenty two-a of this code.
(4) "Eligible safety property" means safety technology equipment, that at the time of acquisition, is on the list of approved innovative mine safety technology.
(5) "Eligible taxpayer" means a coal mining company which purchases eligible safety property.
(6) "List of approved innovative mine safety technology" means the list required to be compiled and maintained by the Mine Safety Technology Task Force and approved and published by the director under this article.
(7) "Office of Miners' Health, Safety and Training" or "West Virginia Office of Miners' Health, Safety and Training" means the Office of Miners' Health, Safety and Training established under article one, chapter twenty two-a of this code.
(8) "Person" includes any corporation, limited liability company, or partnership.
(9) "Qualified investment" means the eligible taxpayer's investment in eligible safety property pursuant to a qualified purchase as qualified and limited by section six of this article.
(10) "Qualified purchase" means and includes only acquisitions of eligible safety property for use in this state.
(A) A lease of eligible safety property may constitute a qualified purchase if the lease was entered into and became effective at a time when the equipment is on the list of approved innovative mine safety technology, and if the primary term of the lease for the eligible safety property is five years or more. Leases having a primary term of less than five years do not qualify.
(B) "Qualified purchase" does not include:
(i) Purchases or leases of realty or any cost for, or related to, the construction of any building, facility or structure attached to realty;
(ii) Purchases or leases of any property not exclusively used in West Virginia;
(iii) Repair costs including materials used in the repair, unless for federal income tax purposes, the cost of the repair must be capitalized and not expensed;
(iv) Motor vehicles licensed by the Department of Motor Vehicles;
(v) Clothing;
(vi) Airplanes;
(vii) Off-premises transportation equipment;
(viii) Leases of tangible personal property having a primary term of less than five years shall not qualify;
(ix) Property that is used outside this state; and
(x) Property that is acquired incident to the purchase of the stock or assets of an industrial taxpayer, which property was or had been used by the seller in his or her industrial business in this state, or in which investment was previously the basis of a credit against tax taken under any other article of this chapter.
(C) Acquisitions, including leases, of eligible safety property may constitute qualified purchases for purposes of this article only if:
(i) The property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of deductions under Section 267 or 707(b) of the United States Internal Revenue Code of 1986, as amended;
(ii) The property is not acquired from a related person or by one component member of a controlled group from another component member of the same controlled group. The Tax Commissioner may waive this requirement if the property was acquired from a related party for its then fair market value; and
(iii) The basis of the property for federal income tax purposes, in the hands of the person acquiring it, is not determined, in whole or in part, by reference to the federal adjusted basis of the property in the hands of the person from whom it was acquired; or under Section 1014(e) of the United States Internal Revenue Code of 1986, as amended.
(11) "Safety technology" means depreciable tangible personal property and equipment, other than clothing, principally designed to directly minimize workplace injuries and fatalities in coal mines.
(12) "Taxpayer" means any person subject to any of the taxes imposed by article thirteen-a, twenty-three or twenty-four of this chapter. Note: WV Code updated with legislation passed through the 2012 1st Special Session
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