Senate Bill No. 702
(By Senators McCabe, McKenzie, Foster, Barnes, Jenkins and Unger)
[Originating in the Committee on Finance;
reported February 25, 2008.]
Be it enacted by the Legislature of West Virginia:
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-13Q-22, relating
to expanding the economic opportunity tax credit for new job
creation to small businesses which meet certain criteria;
specifics of the credit; and credit forfeiture provisions.
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-13Q-22, to read as
ARTICLE 13Q. ECONOMIC OPPORTUNITY TAX CREDIT.
§11-13Q-22. Credit available for taxpayers which do not satisfy
the new jobs percentage requirement.
(a) Notwithstanding any provision of this article to the
contrary, a taxpayer engaged in one or more of the industries or
business activities specified in section nineteen of this article which does not satisfy the new jobs percentage requirement
prescribed in subsection (c), section nine of this article or, if
the taxpayer is a small business as defined in section ten of this
article, does not create at least ten new jobs within twelve months
after placing qualified investment into service as required by
section ten of this article, but which otherwise fulfills the
requirements prescribed in this article, is permitted to claim a
credit against the taxes specified in section seven of this article
in the order so specified that are attributable to and the
consequence of the taxpayer's business operations in this state,
which result in the creation of net new jobs. Credit under this
section is allowed in the amount of three thousand dollars per
year, per new job created and filled by a new employee, as those
terms are defined in section three of this article, for a period of
five consecutive years beginning in the tax year when the new
employee is first hired. In no case may the number of new
employees determined for purposes of this section exceed the total
net increase in the taxpayer's employment in this state. Credit
allowed under this section shall be allowed beginning in the tax
year when the new employee is first hired: Provided,
That the new
(1) Pays at least thirty-two thousand dollars annually; and
(2) Provides benefits, including health care, child care,
retirement or other employment benefits, in addition to the annual salary; and
(3) Is a full-time, permanent position, as defined in section
three of this article.
Jobs that pay less than thirty-two thousand dollars annually,
or that pay at least thirty-two thousand dollars annually but do
not provide benefits in addition to the salary, shall not qualify
for the credit authorized by this section. Jobs that are less than
full-time, permanent positions shall not qualify for the credit
authorized by this section.
(b) Unused credit remaining in any tax year after application
against the taxes specified in section seven of this article is
forfeited and does not carry forward to any succeeding tax year or
back to a prior tax year.
(c) The tax credit authorized by this section may be taken in
addition to any credits allowable under article thirteen-c,
thirteen-d, thirteen-e, thirteen-f, thirteen-g, thirteen-j,
thirteen-r or thirteen-s of this chapter.
(d) Reduction in number of employees credit forfeiture.
during the year when a new job was created for which credit was
granted under this section or during any of the next succeeding
four tax years thereafter, net jobs that are attributable to and
the consequence of the taxpayer's business operations in this state
decrease, counting both new jobs for which credit was granted under
this section and preexisting jobs, then the total amount of credit to which the taxpayer is entitled under this section shall be
decreased and forfeited in the amount of three thousand dollars for
each net job lost.