HB2375 H SB AM #1

Rose 3348

The Committee on Small Business moved to amend the bill on page 1, immediately after the enacting clause by striking the remainder of the bill and inserting in lieu thereof the following:

“That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §11-28-1, §11-28-2, §11-28-3, §11-28-4, §11-28-5, §11-28-6 and §11-28-7, all to read as follows:”.

ARTICLE 28. SMALL BUSINESS EMPOWERMENT AND ECONOMIC EXPANSION PROGRAM.

§11-28-1. Short title.

(a) General. -– When used in this article, or in the administration of this article, terms defined in subsection (b) have the meanings ascribed to them by this section, unless a different meaning is clearly required by either the context in which the term is used, or by specific definition, in this article.

(b) Terms defined.

(1) Code or this code. -- The term “code” or "this code" means the Code of West Virginia, 1931, as amended.

(2) Commissioner or Tax Commissioner. -– The terms "commissioner" and "Tax Commissioner" are used interchangeably herein and mean the Tax Commissioner of the State of West Virginia, or his or her designee.

(3) Newly-established small business. – For purposes of this article, the term "newly-established small business" means a business that:

(A) Employs no more than two hundred fifty persons, of which at least fifty percent are domiciled West Virginia;

(B) Does not earn more than $15 million in annual gross receipts;

(C) Initially obtained a West Virginia business registration certificate pursuant to section four, article twelve of this chapter after July 1, 2017; and

(D) Has not been in a business or controlled by a person, principal or director in a business of the newly established small business.

§11-28-3. Reduced rate for taxable personal income derived from newly-established small businesses.

In lieu of the annual rate of tax imposed under any provision of article twenty-one of this chapter of the code, the tax imposed by section three of article twenty-one of this chapter of the code for a given taxable year, on the West Virginia taxable income derived from a newly-established small business, of every individual; every individual who is a head of a household in the determination of his or her federal income tax for the taxable year; every husband and wife who file a joint return under this article; every individual who is entitled to file his or her federal income tax return for the taxable year as a surviving spouse; and every estate and trust shall be imposed at a rate of tax of zero percent per annum for the first five taxable years of the operation of the newly-established small business.

§11-28-4. Reduced rate for taxable corporate net income derived from newly-established small businesses.

In lieu of the annual rate of tax imposed under any provision of article twenty-four of this chapter of the code, in a given taxable year, the tax imposed by section four of article twenty-four of this chapter of the code on the West Virginia taxable income of a newly-established small business, shall be imposed at the rate of zero percent per annum for each of the first five taxable years of the operation of the newly-established small business.”

§11-28-5. Reports to the Legislature.

The Commissioner shall report to the Legislature by January 1, 2020, regarding the use of this Program and shall make a follow-up report to the Legislature by January 1, 2028. The Commissioner shall direct copies of these reports to the Joint Committee on Government and Finance.

§11-28-6. Termination of Small Business Empowerment and Economic Expansion Program.