HB2760 SFA #1 Weld 4-8
Bailey 7853
Senator Weld moved to amend the bill on page eighteen, after line sixty-six, by adding two new sections, designated sections eight-a and twenty-three-a, to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-8a. Credit for qualified rehabilitated buildings investment.
A credit against the tax imposed by the provisions of this article is allowed as follows:
(a) Certified historic structures.
— For certified historic structures, the credit is equal to 10 percent of
qualified rehabilitation expenditures as defined in §47(c)(2), Title 26 of the
United States Code, as amended: Provided, That for qualified
rehabilitation expenditures made after December 31, 2017, pursuant to an
historic preservation certification application, Part 2 – Description of
Rehabilitation, received by the state historic preservation office after
December 31, 2017, the credit allowed by this section is equal to 25 percent of
the qualified rehabilitation expenditure, subject to the limitations and
other provisions of §11-24-23a of this code: Provided, however, That
the credit authorized by this section for qualified rehabilitation expenditures
made after December 31, 2017, may not be used to offset tax liabilities of the
taxpayer prior to the tax year beginning on or after January 1, 2020: Provided
further, That the taxpayer is not entitled to this credit if, when the
applicant begins to claim the credit and throughout the time period within
which the credit is claimed, the taxpayer is in arrears in the payment of any
tax administered by the Tax Division or the taxpayer is delinquent in the
payment of any local or municipal tax, or the taxpayer is delinquent in the
payment of property taxes on the property containing the certified historic tax
structure when the applicant begins to claim the credit and throughout the time
period within which the credit is claimed. The Tax Commissioner shall
promulgate procedural rules in accordance with §29A-3-1 et seq. of this
code that provide what information must accompany any claim for the tax credit
for the determination that the taxpayer is not in arrears in the payment of any
tax administered by the Tax Division, is not delinquent in the payment of any
local or municipal tax, nor is the taxpayer delinquent in the payment of
property taxes on the property containing the certified historic tax structure,
and such other administrative requirements as the Tax Commissioner may specify.
This credit is available for both residential and nonresidential buildings
located in this state, that are reviewed by the West Virginia Division of
Culture and History and designated by the National Park Service, United States
Department of the Interior as “certified historic structures”, and further
defined as a “qualified rehabilitated building”, as defined under §47(c)(1),
Title 26 of the United States Code, as amended.
(b) The tax credit allowed
by this section is eliminated after December 31, 2022: Provided,
That any tax credits authorized by the state historic preservation officer and
eligible to be claimed prior to January 1, 2023, shall continue to be eligible
to be claimed subject to the provisions of law governing those tax credits that
were in effect prior to January 1, 2023
(a) Any unused portion of the credit for qualified rehabilitated buildings investment authorized by this section which may not be taken in the taxable year to which the credit applies does not qualify for carryback and carryforward treatment subject to the identical general provisions under § 39, Title 26 of the United States Code, as amended: Provided, That the amount of the credit taken in a taxable year shall in no event exceed the tax liability due for the taxable year: Provided, however, That for tax years beginning on and after January 1, 2020, any unused portion of the credit authorized by this section may not be carried back to any prior taxable year: Provided further, That for tax years beginning on and after January 1, 2020, any unused portion of the credit authorized by this section may be carried over to each of the next 10 tax years following the first tax year for which the credit entitlement is authorized under this article for a specific qualified rehabilitation buildings investment until used to exhaustion or forfeited due to lapse of time.
(b) Effective for taxable years beginning on and after January 1, 2021, credits granted to an electing small business corporation (S corporation), limited partnership, general partnership, limited liability company, or multiple owners of property shall be passed through to the shareholders, partners, members, or owners, either pro-rata or pursuant to an agreement among the shareholders, partners, members, or owners, documenting an alternative distribution method. The Tax Commissioner shall promulgate procedural rules in accordance with §29A-3-1 et seq. of this code that provide the method of reporting the alternative method of distribution authorized by this section.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-23a. Credit for qualified rehabilitated buildings investment.
(a) A credit against the tax imposed by the provisions of this article shall be allowed as follows:
Certified historic structures. — For certified historic structures, the credit is equal to 10 percent of qualified rehabilitation expenditures as defined in §47(c)(2), Title 26 of the United States Code, as amended: Provided, That for qualified rehabilitation expenditures made after December 31, 2017, pursuant to an historic preservation certification application, Part 2 – Description of Rehabilitation, received by the state historic preservation office after December 31, 2017, the credit allowed by this section is equal to 25 percent of the qualified rehabilitation expenditure: Provided, however, That the credit authorized by this section for qualified rehabilitation expenditures made after December 31, 2017, may not be used to offset tax liabilities of the taxpayer prior to the tax year beginning on or after January 1, 2020: Provided further, That the taxpayer is not entitled to this credit if, when the applicant begins to claim the credit and throughout the time period within which the credit is claimed, the taxpayer is in arrears in the payment of any tax administered by the Tax Division or the taxpayer is delinquent in the payment of any local or municipal tax, or the taxpayer is delinquent in the payment of property taxes on the property containing the certified historic tax structure when the applicant begins to claim the credit and throughout the time period within which the credit is claimed. The Tax Commissioner shall promulgate procedural rules in accordance with §29A-3-1 et seq. of this code that provide what information must accompany any claim for the tax credit for the determination that the taxpayer is not in arrears in the payment of any tax administered by the Tax Division, is not delinquent in the payment of any local or municipal tax, nor is the taxpayer delinquent in the payment of property taxes on the property containing the certified historic tax structure, and such other administrative requirements as the Tax Commissioner may specify. This credit is available for both residential and nonresidential buildings located in this state that are reviewed by the West Virginia Division of Culture and History and designated by the National Park Service, United States Department of the Interior as “certified historic building”, and further defined as a “qualified rehabilitated building”, as defined under §47(c)(1), Title 26, of the United States Code, as amended.
(b) Allocations and maximum amounts of tax credits
per project and per fiscal year
(1) No more than $10 million of the tax credits
authorized by this section and section eight-a, article twenty-one of this
chapter may be allocated, reserved or issued by the state historic preservation
officer to any single certified rehabilitation.
(2) No more than $30 million of the tax credits
authorized by this section and section eight-a, article twenty-one of this
chapter cumulatively may be issued by the state historic preservation officer
for use in any given West Virginia state fiscal year, and any amount remaining
up to $30 million may not be carried over to a subsequent West Virginia state
fiscal year.
(3) At the beginning of each fiscal year, no less
than $5 million of the tax credits authorized by this section and §11-21-8a of
this code shall be set aside for reservation and the issuance of tax credits
for certified rehabilitation projects with proposed tax credits of $500,000.
The balance of any amount set aside for these projects that has not been
reserved pursuant to the procedures in subsection (c) of this section by the
end of the fiscal year shall be allocated by the state historic preservation
officer for the projects in any amount of other pending applicants otherwise
eligible for the issuance of tax credits under this section and section
eight-a, article twenty-one of this chapter in the order that the applications
for those projects were received.
(c) (b) Procedure for issuance of tax
credits reservations and certificates by the state historic preservation
officer. —
(1) Any claim for the tax credits authorized pursuant to this section and §11-21-8a of this code shall be accompanied by a tax credit certificate issued by the state historic preservation officer.
(2) The tax credits will be awarded on a first come,
first served basis. At the time the historic preservation certification
application, Part 2 – Description of Rehabilitation, is received by the state
historic preservation office, the project will be placed on a reservation list,
which will reserve the tax credit amount listed on the application. The
historic preservation certification application, Part 2 – Description of
Rehabilitation, will be reviewed by the state historic preservation office for
completion and submitted to the National Park Service for full review. At
the time the historic preservation certification application, Part 2 –
Description of Rehabilitation, is submitted to the National Park Service, the
state historic preservation officer shall send a request for the fee prescribed
in subsection (d) of this section to the property owner. Upon approval of
the historic preservation certification application, Part 2 – Description of
Rehabilitation, from the National Park Service, including approval with
conditions, that the project will meet the Secretary of the Interior’s
standards for rehabilitation, the owner of the building will receive guarantee
of the tax credits from the state historic preservation office.
(3) The state historic preservation officer shall issue tax credit certificates for certified rehabilitation projects that the National Park Service has determined have met the Secretary of the Interior standards for rehabilitation based on the issuance of an approved historic preservation certification application, Part 3 – Request for Certification of Completed Work.
(4) Once the state historic preservation officer has
allocated and reserved the maximum tax credits authorized for any given West
Virginia state fiscal year, the state historic preservation officer then shall
allocate and reserve tax credits against the maximum tax credits authorized for
use in the succeeding West Virginia state fiscal year.
(5) If an applicant for tax credits that receives a
reservation for tax credits for any given West Virginia state fiscal year fails
to submit an approved historic preservation certification application, Part 3 –
Request for Certification of Completed Work in the instance of a certified
rehabilitation within thirty-six (36) months of the date of the approved
historic preservation certification application, Part 2 – Description of
Rehabilitation, therefor or in the instance of a phased project as determined
by the National Park Service within 60 months of the date of the advisory
determination by the National Park Service therefor that such phase has been
completed in accordance with the Secretary of the Interior standards for
rehabilitation then the state historic preservation officer may reallocate part
or all of the tax credits reserved therefor to other applicants in the order
their applications were received.
(d) (c) The state historic preservation
officer shall prescribe and publish a form and instructions for an application
for reservation and issuance of the tax credits authorized by this
section and §11-21-8a of this code.
(e) (d) Application fee. — Each
application for tax credits authorized pursuant to this section and §11-21-8a
of this code shall require a fee payable to the state historic preservation
officer equal to the lesser of: (1) 0.5% of the amount of the tax credits requested
for in such application; and (2) $10,000. The state historic preservation
officer shall review and act on all such applications within 30 days of
receipt.
Fees collected under this subsection shall be deposited into a special revenue account which is hereby created. The fund shall be administered by the state historic preservation officer and expended for the purposes of administering the provisions of this section and §11-21-8a of this code.
b The tax credit allowed by this section is
eliminated after December 31, 2022: Provided, That any tax credits
authorized by the state historic preservation officer and eligible to be
claimed prior to January 1, 2023, shall continue to be eligible to be claimed
subject to the provisions of law governing those tax credits that were in
effect prior to January 1, 2023.
Any unused portion of the credit for qualified rehabilitated buildings investment authorized by this section which may not be taken in the taxable year to which the credit applies shall qualify for carryback and carryforward treatment subject to the identical general provisions under § 39, Title 26 of the United States Code, as amended: Provided, That the amount of such credit taken in a taxable year shall in no event exceed the tax liability due for the taxable year: Provided, however, That for tax years beginning on and after January 1, 2020, any unused portion of the credit authorized by this section, may not be carried back to any prior taxable year: Provided further, That for tax years beginning on and after January 1, 2020, any unused portion of the credit authorized by this section may be carried over to each of the next 10 tax years following the first tax year for which the credit entitlement is authorized under this article for a specific qualified rehabilitation buildings investment until used to exhaustion or forfeited due to lapse of time.
Adopted
Rejected