Senate
House
Joint
Bill Status
WV Code
Audits/ Reports
Educational
Contact
home
home

SB686 SUB2 Senate Bill 686 History

OTHER VERSIONS  -  Introduced Version  |     |  Email


SB686 SUB2
COMMITTEE SUBSTITUTE

FOR

COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 686

(By Senators Plymale, McCabe, Bailey, Fanning, Chafin,

Minard, Jenkins and White)

____________

[Originating in the Committee on Finance;

reported February 22, 2008.]

____________


A BILL to amend and reenact §31-15A-7 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto two new sections, designated §31-15A-7a and §31-15A-10a, all relating to the West Virginia Infrastructure and Jobs Development Council; providing for the planning, construction and expansion of new or existing water, sewer and gas lines or facilities and other infrastructure concomitant to the construction of the new roads projects; providing a tax credit for contributions for planning, construction or expansion of new or existing water and sewer lines; and providing a tax credit for contributing to the completion of projects recommended by the council and roads associated with such projects.

Be it enacted by the Legislature of West Virginia:
That §31-15A-7 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that said code be amended by adding thereto two new sections, designated §31-15A-7a and §31-15A-10a, all to read as follows:
ARTICLE 15A. WEST VIRGINIA INFRASTRUCTURE AND JOBS DEVELOPMENT COUNCIL.

§31-15A-7. Current and prospective planning; roads and highways; report to Division of Highways.

(a) The council shall take into account the current and prospective infrastructure needs in relation to plans of the Division of Highways for the development and building of new roads. Upon completion of an environmental impact study, the Commissioner of Highways shall provide the council with plans for any and all new roads. In a timely manner, the council shall advise the Commissioner of the Division of Highways on the feasibility of the expansion of new or existing water, and sewer and gas lines or facilities and other infrastructure concomitant to the construction of the new roads.
(b) The council has the authority to appoint local may, with respect to each new road, establish highway construction infrastructure planning teams, each consisting of six voting members. The local infrastructure Each planning team may shall consist of the following: A designee of the Division of Highways from the region where the new road is being built; a designee of the Division of Highways from the central state office; a designee from the Environmental Engineers Division of the Department of Health and Human Resources; a designee the director or directors from the local developmental authority or authorities where the new road is being built; a designee from the regional developmental authority in the area where the new road is being built; a designee from the Public Service Commission; a designee from the division Department of Environmental Protection; a designee from the county commission where the new road is being built who shall serve as chairperson of the planning team; a citizen of the county where the new road is being built to be chosen by the county commission; and a designee from the West Virginia Division of the Federal Highway Administration who shall serve as a nonvoting ex officio member. Other nonvoting, ex officio members are the elected state delegates and senators from the area where the new road is being built. The director of the local development authority shall serve as chair or, where multiple counties are involved, the local development directors shall select the person to serve as chair of the planning team. No business may be transacted by a planning team in the absence of a quorum. The planning team shall meet prior to the development and building of a new road or during the construction of the road. Representatives of all utilities located in the project area shall be invited to all meetings.
(c) In order to avoid delay of any highway road project, immediately upon appointment creation of a local infrastructure planning team, the director Commissioner of the Division of Highways shall submit to the council a time frame within which the planning team must act and within which the planning team must submit any plans, maps, recommendations or reports developed pursuant to this subsection. The local infrastructure planning team shall meet prior to the development and building of a new road. Members of the local infrastructure planning team shall only receive payment for actual expenses incurred. The local infrastructure planning team shall advise the commissioner of the Division of Highways on the feasibility of an infrastructure plan. The local infrastructure Each planning team shall meet to develop an infrastructure plan that includes an assessment study of existing water, and sewer and gas lines or facilities and other infrastructure and a feasibility study on future development and laying of water, and sewer and gas lines or facilities and other infrastructure. After these studies are completed, a developmental map shall be drawn of the proposed road route with overlays of the proposed water, and sewer and gas lines or facilities. The planning team may adopt the local development authorities plan for infrastructure improvements along the new road. After these studies are completed, a developmental map shall be drawn of the proposed corridor route with overlays of the proposed water, sewer and gas lines or facilities. These studies and the map shall be presented to the Commissioner of the Division of Highways and the council and shall be used by the commissioner in the planning, developing and building of the road and by the council in recommending funding for infrastructure along the new road.
(c) (d) The Water Development Authority shall establish continue a restricted account within the Infrastructure Fund to be expended for the construction of water, and sewage and gas lines or facilities and other infrastructure as may be recommended by the council in accordance with this article and specifically, in accordance with the plan developed under subsection (b) (c) of this section. The reserve account shall be known as the Infrastructure Road Improvement Reserve Account. The Legislature shall appropriate ten million dollars annually to the reserve account. In order for a project to receive assistance from the Infrastructure Road Improvement Reserve Account it must meet the following criteria:
(1) The right-of-way must be a minimum of one thousand feet long and have a width of a minimum of fifteen feet on both sides of the planned corridor;
(2) There must be property adjacent to the planned corridor with access and capability of development;
(3) The property should contain a minimum of acreage with potential to generate jobs and taxes;
(4) The corridor must be an independent utility with ingress and egress serving the public on each end;
(5) Preference for assistance shall be given to counties with a master land use plan but the minimum of a standard corridor master plan is required; and
(6) No more than half of the total allocation shall be spent in any one congressional district.
(e)The council and the Division of Highways may enter into agreements to share the cost of financing projects approved in accordance with this section from moneys available in the Infrastructure Road Reserve Account and moneys available from the State Road Fund. Annually, the council may direct the Water Development Authority to transfer funds from the Infrastructure Fund in an amount not to exceed one million dollars to the restricted account. Provided, That at no time may the balance of the restricted account exceed one million dollars
(d) (f) For the purposes of this section, the term "new" means a road right-of-way being built for the first time.
(e) (g) After the construction of water and sewer lines adjacent to the new road, these new lines shall be turned over to existing utilities by expansion of boundaries of public service districts or shall be main extensions from the municipality.
§31-15A-7a. Tax credit for Infrastructure Road Improvement Reserve Account project expenditures.

(a) There shall be allowed to eligible taxpayers a nonrefundable credit against the taxes imposed in articles twenty-one, twenty-three and twenty-four, chapter eleven of this code. For the purpose of this section, "eligible taxpayer" means any person subject to the taxes prescribed by article twenty-one, twenty-three or twenty four, chapter eleven of this code. (b) The credit shall be available to eligible taxpayers who contribute to the completion of a project for water or sewer lines that is receiving moneys from the Infrastructure Road Improvement Reserve Account. The maximum amount of credit allowable under this section is an amount equal to the amount approved by the council pursuant to subsection (c) of this section.
(c)(1) Within sixty days following a determination by the consulting engineer for a project for water or sewer lines that is receiving moneys from the Infrastructure Road Improvement Reserve Account that the project is substantially complete, an eligible taxpayer shall submit to the council the amount contributed to the project, along with all invoices and documentation supporting the amount;
(2) The council shall review the information submitted pursuant to subdivision (1) of this subsection and determine the amount the eligible taxpayer may take for the credit, if any: Provided, That the maximum amount the council may approve for any one project is the amount provided by the Infrastructure Road Improvement Reserve Account for the project or two million dollars, whichever is less: Provided, however, That if more than one eligible taxpayer seeks and obtains authorization from the council to take a credit for the same project, the eligible taxpayers shall take a pro rata share up to the maximum amount.
(d) An eligible taxpayer shall not take a credit pursuant to this subsection until:
(1) The consulting engineer for the project has indicated in writing that the project is substantially complete; and
(2) The council has approved any amounts submitted pursuant to subsection (c) of this section.
(e) The amount of credit allowable must be taken over a five-year period, at the rate of one fifth of the amount thereof per taxable year, beginning with the taxable year in which the provisions of subsection (c) of this section are satisfied, unless the eligible taxpayer elects to delay the beginning of the five-year period until the next succeeding taxable year.
(f) Application of annual credit allowance. -- The amount of credit as determined under subsection (c) of this section is allowed as a credit against the eligible taxpayer's state tax liability applied as provided in subdivisions (1) through (3), inclusive, of this subsection, and in that order.
(1) Business franchise tax. -- The credit must first be applied to reduce the taxes imposed by article twenty-three, chapter eleven of this code for the taxable year.
(2) Corporation net income taxes. -- After application of subdivision (1) of this subsection, any unused credit is next applied to reduce the taxes imposed by article twenty-four, of chapter eleven of this code for the taxable year.
(3) Personal income taxes. --
(A) If the eligible taxpayer making the contribution is an electing small business corporation (as defined in Section 1361 of the United States Internal Revenue Code of 1986, as amended), a partnership, a limited liability company that is treated as a partnership for federal income tax purposes or a sole proprietorship, then any unused credit (after application of subdivisions (1) and (2) of this subsection) is allowed as a credit against the taxes imposed by article twenty-one, chapter eleven of this code on the income from business or other activity subject to tax under article twenty-three, chapter eleven of this code or on income of a sole proprietor attributable to the business.
(B) Electing small business corporations, limited liability companies, partnerships and other unincorporated organizations shall allocate the credit allowed by this article among its members in the same manner as profits and losses are allocated for the taxable year.
(C) If the eligible taxpayer making the contribution is an individual and is not subject to the taxes imposed in articles twenty-three and twenty-four of chapter eleven of this code and subdivision (3)(of this section) is inapplicable to the eligible taxpayer, then the credit may be taken by the eligible taxpayer against the taxes imposed by article twenty-one, chapter eleven of this code for the taxable year.
(5) No credit is allowed under this section against any employer withholding taxes imposed by article twenty-one of chapter eleven of this code.
(g) Unused credit. -- If any credit remains after application of subsection (f) of this section, the amount thereof is forfeited. No carryback to a prior taxable year is allowed for the amount of any unused portion of any annual credit allowance.
§31-15A-10a. Tax credit for contributions to completion of projects and associated road construction.
(a) There is allowed to eligible taxpayers a nonrefundable credit against the taxes imposed in articles twenty-one, twenty-three and twenty-four, chapter eleven of this code. For the purpose of this section, "eligible taxpayer" means any person subject to the taxes prescribed by articles twenty-one, twenty-three or twenty-four, chapter eleven of this code.
(b) The credit shall be available to eligible taxpayers who contribute to the completion of a project that the council has recommended for a loan, loan guarantee, grant or other assistance pursuant to section ten of this article or to the completion of a road associated with such project. The maximum amount of credit allowable under this section is an amount equal to the amount approved by the council pursuant to subsection (c) of this section.
(c)(1) Within sixty days following a determination by the consulting engineer for a project that the council has recommended for a loan, a loan guarantee, grant or other assistance pursuant to section ten of this article or with a road associated with such a project that the project or road is substantially complete, an eligible taxpayer shall submit to the council the amount contributed to the completion of the road or project, along with all invoices and documentation supporting such amount;
(2) The council shall review the information submitted pursuant to subdivision (1) of this subsection and determine the amount the eligible taxpayer may take for the credit, if any: Provided, That the maximum amount of credit for all eligible taxpayers the council may approve for any one project or associated road is the amount provided pursuant to the recommendation by the council pursuant to section ten of this article or two million dollars, whichever is less: Provided, however, That if more than one eligible taxpayer seeks and obtains authorization from the council to take a credit for the same project or associated road, the eligible taxpayers shall take a pro rata share up to the maximum amount.
(d) An eligible taxpayer shall not take a credit pursuant to this subsection until:
(1) The consulting engineer for the project or road has indicated in writing that the project or associated road is substantially complete; and
(2) The council has approved any amounts pursuant to subsection (c) of this section.
(e) The amount of credit allowable must be taken over a five-year period, at the rate of one fifth of the amount thereof per taxable year, beginning with the taxable year in which the provisions of subsection (c) of this section are satisfied unless the eligible taxpayer elects to delay the beginning of the five-year period until the next succeeding taxable year.
(f) Application of annual credit allowance. -- The amount of credit as determined under subsection (c) of this section is allowed as a credit against the eligible taxpayer's state tax liability applied as provided in subdivisions (1) through (3), inclusive, of this subsection, and in that order.
(1) Business franchise tax. -- The credit shall first be applied to reduce the taxes imposed by article twenty-three, chapter eleven of this code for the taxable year.
(2) Corporation net income taxes. -- After application of subdivision (1) of this subsection, any used credit is next applied to reduce the taxes imposed by article twenty-four, chapter eleven of this code for the taxable year.
(3) Personal income taxes. --
(A) If the eligible taxpayer making the contribution is an electing small business corporation (as defined in Section 1361 of the United States Internal Revenue Code of 1986, as amended), a partnership, a limited liability company that is treated as a partnership for federal income tax purposes or a sole proprietorship, then any unused credit (after application of subdivisions (1) and (2) of this subsection) is allowed as a credit against the taxes imposed by article twenty-one, chapter eleven of this code on the income from business or other activity subject to tax under article twenty-three, chapter eleven of this code or on income of a sole proprietor attributable to the business.
(B) Electing small business corporations, limited liability companies, partnerships and other unincorporated organizations shall allocate the credit allowed by this article among its members in the same manner as profits and losses are allocated for the taxable year.
(C) If the eligible taxpayer making the contribution is an individual and is not subject to the taxes imposed in articles twenty-three and twenty four, chapter eleven of this code and paragraph (B) subdivision (3)of this subsection is inapplicable to the eligible taxpayer, then the credit may be taken by the eligible taxpayer against the taxes imposed by article twenty-one, chapter eleven of this code for the taxable year.
(4) No credit is allowed under this section against any employer withholding taxes imposed by article twenty-one, chapter eleven of this code.
(g) Unused credit. -- If any credit remains after application of subsection (f) of this section, the amount thereof is forfeited. No carryback to a prior taxable year is allowed for the amount of any unused portion of any annual credit allowance.
This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.  |  Terms of Use  |   Web Administrator   |   © 2014 West Virginia Legislature ****