H. B. 2870

(By Delegates Beach, Kelley, Proudfoot, Boggs, Buchanan,



Damron and Dempsey)

(Originating in the Committee on

Agriculture and Natural Resources)

[March 28, 1997]




A BILL to amend chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article thirteen-m, relating to allowing a tax credit of two hundred fifty dollars per full-time hourly employee for eligible taxpayers engaged in new wood manufacturing operations producing consumer ready products and beginning operation within this state after the first day of July, one thousand nine hundred ninety-seven.

Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article thirteen-m, to read as follows:
ARTICLE 13M. TAX CREDIT FOR NEW WOOD MANUFACTURING OPERATIONS AFTER JULY 1, 1997.

§11-13M-1. Legislative purpose.
 The Legislature finds that production of consumer ready wood products is very important to the economy of this state, and that a sound economy is in the public interest and promotes the general welfare of the people of this state. In order to encourage capital investment in this state, through the production of consumer ready wood products on or after the first day of July, o ne thousand nine hundred ninety-seven, thereby increasing employment and economic development, there is hereby provided a tax credit allowed to eligible taxpayers for each full-time hourly employee in a new wood manufacturing facility beginning operation within this state on or after the first day of July, one thousand nine hundred ninety-seven .
 §11-13M-2. Credit allowed; amount and duration of credit; recapture of credit and effective date.
(a) There shall be allowed to eligible taxpayers a credit against the taxes imposed in articles twenty-one, twenty-three and twenty-four of this chapter. For the purpose of this article, "eligible taxpayer" means a person, firm, partnership, corporation or other entity commencing new production of consumer ready wood products on or after the first day of July, one thousand nine hundred ninety-seven within this state and that employs full-time hourly employees. For the purposes of this article, "new production of consumer ready wood products" means the production of retail wood products in a new wood manufacturing facility beginning operation on or after the first day of July, one thousand nine hundred ninety-seven and located within the state by a sole proprietorship, partnership, corporation, limited liability company or limited liability partnership. For the purpose of this article, "full-time hourly employee" means an employee working 1,800 hours or more for the eligible taxpayer within a twelve month period during the eligible taxpayer's tax year. This credit shall be in an amount equal to two hundred fifty dollars for each full-time hourly employee engaged in the production of consumer ready wood products at a wood manufacturing facility located within this state. This credit shall be allowed annually for eligible taxpayers, and this credit will expire on the first day of July, two thousand and two.
(b) The credit set forth in this article shall apply to personal income tax liabilities, corporation net income tax liabilities and business franchise tax liabilities arising on or after the first day of July, one thousand nine hundred ninety- seven.
§11-13M-3. Application of credit; limitation of credit; tax commissioner to promulgate forms and legislative rule; notice of credit.

(a) The credit allowed in this article shall be first applied to a taxpayer's business franchise tax liability, and then to either the taxpayer's personal income tax liability or corporation net income tax liability, as the case may be.
(b) The credit allowed in this article may not exceed the total tax liability for all state taxes for a given tax year and, if the tax credit exceeds the taxpayer's total tax liability, no refund is allowed. No carryover to a subsequent taxable year or carry back to a prior taxable year is allowed for the amount of any unused portion of this credit.
(c) The state tax commissioner shall propose legislative rules to be promulgated pursuant to chapter twenty-nine-a of this code regarding the applicability, method of claiming of the credit, recapture of the credit and documentation necessary to claim the credit herein allowed.