FISCAL
NOTE
2017 regular session
By Delegates
Atkinson, Hill, Ward, Kelly, Moore, Harshbarger, Ambler, Cooper, Hollen, Westfall
and Kessinger
[
to the Committee on Small Business, Entrepreneurship and Economic Development
then Finance.
A BILL to amend the Code
of West Virginia, 1931, as amended, by adding thereto a new section, designated
§11-13DD-1,
relating to providing a temporary tax credit for small group employers to cover
a tax credit of up to fifty percent of
the costs of branding,
marketing and advertising of agricultural or manufactured products produced or
manufactured in West Virginia; establishing limits; and providing that the
credit be available for five years.
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 §11-13DD-1,
to read as follows:
ARTICLE 13DD. SMALL BUSINESS TAX CREDIT.
§11-13DD-1. Tax Credit
for Small Businesses.
(a) Credit allowed.
-- Each eligible small group employer with fewer than twenty-five employees is
allowed a tax credit of up to fifty percent of the costs of branding,
marketing and advertising of agricultural or manufactured products produced or
manufactured in West Virginia. An
eligible employer must maintain its corporate headquarters in West Virginia and
the tax credit is available for the taxable year in which the investment was
made.
(b) No more than
$100,000 of the tax credits allowed under subsection (a) of this section may be
allowed.
(c) Business
franchise tax. –- The tax credit is applied to reduce the taxes imposed
upon the eligible taxpayer by article twenty-three of this chapter for the
taxable year as determined after application of the credits against tax provided
in section seventeen of that article, but after application of any other
allowable credits against tax.
(d) Corporation net
income taxes. -- After application of subsection (c) of this section, any
unused tax credit is next applied to reduce the taxes imposed upon the eligible
taxpayer by article twenty-four of this chapter for the taxable year as determined
before application of allowable credits against tax.
(e) If the eligible
taxpayer is a limited liability company, an electing small business corporation,
as defined in section 1361 of the United States Internal Revenue Code of 1986,
or a partnership, any unused tax credit remaining after application of
subsections (c) and (d) of this section is allowed as a tax credit against the
taxes imposed by article twenty-four of this chapter on owners of the eligible
taxpayer.
(1) Electing small
business corporations, as defined in subsection (e) of this section, limited
liability companies, and partnerships shall allocate the tax credit allowed by
this article among their members in the same manner as profits and losses are
allocated for the taxable year.
(2) No tax credit is
allowed under this article against any withholding tax imposed by, or payable
under, article twenty-one of this chapter.
(f) If the eligible taxpayer
is a limited liability company, an electing small business corporation, as
identified in subsection (e) of this section, or a partnership, any unused tax
credit remaining after application of subsections (c), (d) and (e) of this
section is allowed as a tax credit against the taxes imposed by article
twenty-one of this chapter on owners of the eligible taxpayer.
(1) Electing small
business corporations, as defined in subsection (e) of this section, limited
liability companies, and partnerships shall allocate the tax credit allowed by
this article among their members in the same manner as profits and losses are
allocated for the taxable year.
(2) No tax credit is
allowed under this article against any withholding tax imposed by, or payable
under, article twenty-one of this chapter.
(g) The total amount of
tax credit that may be used in any taxable year by any eligible taxpayer in
combination with the owners of the eligible taxpayer under subsections (e) and
(f) of this section may not exceed $10,000.
(h) Unused credit
carry forward. -- If the tax credit allowed under this article in any
taxable year exceeds the sum of the taxes enumerated in subsections (c), (d),
(e) and (f) of this section for that taxable year, the eligible taxpayer and
owners of eligible taxpayers described in subsections (e) and (f) of this
section may apply the excess as a tax credit against those taxes, in the order
and manner stated in this section, for succeeding taxable years until the
earlier of the following:
(1) The full amount of
the excess tax credit is used; or
(2) The expiration of
the fourth taxable year after the taxable year in which the investment was
made. The tax credit remaining thereafter is forfeited.
(i) The tax credit is
allowed or may be applied under this article is limited to five years,
beginning with tax year after December 31, 2017.
NOTE: The purpose of this bill is
to provide a temporary tax credit for small group employers to
cover a tax
credit of up to fifty percent of the costs of branding, marketing and
advertising of agricultural or manufactured products produced or manufactured
in West Virginia. The bill establishes limits. The bill provides that the
credit be available for five years.
These sections have been
completely rewritten; therefore, they have been completely underscored.