West Virginia HB 2760: Relating to economic development incentive tax credits
Status: Chapter 262, Acts, Regular Session, 2021 (as of 2021-05-20)
State: West Virginia · Session: 2021 · Bill: HB 2760
Subjects: Taxation
Sponsors: Capito, Hott, Mandt, Maynard, Pack, L., Queen, Riley, Young
Bill Text
HB2760 H FIN AM #1 Chakmakian 3260 The Committee on Finance moved to amend the Committee Substitute on page 1, following the enacting clause, by striking the remainder of the bill in its entirety and inserting in lieu thereof the following: �ARTICLE 13Q. ECONOMIC OPPORTUNITY TAX CREDIT. �11-13Q-9. New jobs percentage. (a) In general. -- The new jobs percentage is based on the number of new jobs created in this state directly attributable to the qualified investment of the taxpayer. (b) When a job is attributable. -� An employee�s position is directly attributable to the qualified investment if: (1) The employee�s service is performed or his or her base of operations is at the new or expanded business facility; (2) The position did not exist prior to the construction, renovation, expansion, or acquisition of the business facility and the making of the qualified investment; and (3) But for the qualified investment, the position would not have existed. (c) Applicable percentage. � (1) For the purpose of subsection (a) of this section, the applicable new jobs percentage is determined under the following table: If number of ��������������������������������������������������������������� The applicable new jobs is at least: �������������������������������������������������� percentage is: 20������������������������������������������������������������������������������� 20% 280����������������������������������������������������������������������������� 25% 520����������������������������������������������������������������������������� 30% (2) Provided, That for credit applications filed for taxable years beginning on and after January 1, 2022, for the purpose of subsection (a) of this section, the applicable new jobs percentage is determined under the following table: If number of ��������������������������������������������������������������� The applicable new jobs is at least: �������������������������������������������������� percentage is: 10������������������������������������������������������������������������������� 10% 20������������������������������������������������������������������������������� 20% 280 ���������������������������������������������������������������������������� 25% 520����������������������������������������������������������������������������� 30% (d) Certification of new jobs. -- With the annual return for the applicable taxes filed for the taxable year in which the qualified investment is first placed in service or use in this state, the taxpayer shall estimate and certify the number of new jobs reasonably projected to be created by it in this state within the period prescribed in subsection (f) of this section that are, or will be, directly attributable to the qualified investment of the taxpayer. For purposes of this section, �applicable taxes� means the taxes imposed by articles thirteen �11-13-1, et seq., twenty-one ��11-21-1, et seq., twenty-three and twenty-four� �11-24-1, et seq. of this chapter code against which this credit is applied. (e) Equivalency of permanent employees. -- The hours of part-time employees shall be aggregated to determine the number of equivalent full-time employees for the purpose of this section. (f) Redetermination of new jobs percentage. -- With the annual return for the applicable taxes imposed, filed for the third taxable year in which the qualified investment is in service or use, the taxpayer shall certify the actual number of new jobs created by it in this state that are directly attributable to the qualified investment of the taxpayer. (1) If the actual number of jobs created would result in a higher new jobs percentage, the credit allowed under this article shall be redetermined and amended returns filed for the first and second taxable years that the qualified investment was in service or use in this state. (2) If the actual number of jobs created would result in a lower new jobs percentage, the credit previously allowed under this article shall be redetermined and amended returns filed for the first and second taxable years. In applying the amount of redetermined credit allowable for the two preceding taxable years, the redetermined credit shall first be applied to the extent it was originally applied in the prior two years to personal income taxes, then to corporation net income taxes, then to business franchise taxes and, lastly, to business and occupation taxes. Any additional taxes due under this chapter shall be remitted with the amended returns filed with the commissioner, along with interest, as provided in �11-10-17 of this code, and a 10-percent penalty determined on the amount of taxes due with the amended return, which may be waived by the commissioner if the taxpayer shows that the overclaimed amount of the new jobs percentage was due to reasonable cause and not due to willful neglect. (g) Additional new jobs percentage. �- When the qualified
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