Senate Bill No. 624
(By Senators Browning, Unger, McCabe, Williams, Klempa and Stollings)
[Introduced February 17, 2012; referred to the Committee on Economic Development; and then to the Committee on Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-6D-10, relating to permitting the transfer of tax credits for the purchase of alternative-fuel vehicles, the conversion to an alternative-fuelvehicle or the construction of alternative-fuel vehicle infrastructure.
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 §11-6D-10, to read as follows:
ARTICLE 6D. ALTERNATIVE-FUEL MOTOR VEHICLES TAX CREDIT.
§11-6D-10. Transfer or sale of credit.
(a) Any entity, including a governmental entity, that would be eligible for a tax credit issued in accordance with this article if that entity fits within the definition of “taxpayer” as that term is defined in section two of this article, may transfer the right to that tax credit to any taxpayer, subject to the following conditions:
(1) A single transfer or sale may involve one or more transferees, assignees or purchasers. A transfer or sale of the credits may involve multiple transfers to one or more transferees, assignees or purchasers.
(2) Transferors and sellers shall apply to the tax department for approval of any transfer, sale or assignment of the tax credit. Any amount of the tax credit that has been transferred or assigned is subject to the same limitations and conditions that apply to transferor’s or seller’s entitlement, use and application of the credit. The application for sale, transfer or assignment of the credit shall include the transferor’s tax credit balance prior to transfer, if any, the name of the seller, the transferor’s remaining tax credit balance after transfer, if any, all tax identification numbers for both transferor, if any, and transferee, the date of transfer, the amount transferred and any other information required by the Tax Commissioner.
(3) The Tax Commissioner may not approve the transfer or assignment of a tax credit to a taxpayer if the seller or transferor has an outstanding tax obligation with the state of West Virginia.
(b) The transferee, assignee or purchaser shall apply the tax credits as required by this article and is subject to all conditions and limitations of this article.
(c) For purposes of this section, any proceeds received by the transferor for its assignment or sale of the tax credits allowed pursuant to this section are exempt from the West Virginia consumers sales and service tax and use tax and from the corporate net income tax and personal income tax.
NOTE: The purpose of this bill is to permit tax credits taken for the purchase of alternative fuel vehicles or conversion to alternative fuel vehicles or the construction of alternative fuel vehicle infrastructure to be transferred.
This section is new; therefore, strike-throughs and underscoring have been omitted.