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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