Senate Bill No. 113
(By Senator Ross, Helmick, Minard, Unger, Bowman, Ball,
Kessler, Chafin, Sharpe, Minear, McCabe, Hunter, Redd, Sprouse,
Love, Fanning, Anderson, Dittmar and Tomblin, Mr. President)
[Introduced January 18, 2000; referred to the Committee
on Small Business; and then to the Committee on Finance.]
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-p,
relating to taxation; and providing a small business tax
credit equal to any guaranty fee paid to the small business
administration to obtain small business administration
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-p, to
read as follows:
ARTICLE 13P. SMALL BUSINESS TAX CREDIT.
§11-13P-1. Short title.
This article may be cited as the "West Virginia Small
Business Tax Credit Act."
§11-13P-2. Small business tax credit.
For the purposes of this article, a "small business" is any
corporation, partnership, sole proprietorship or other business
entity which has an annual payroll of one million five thousand
dollars or less, or annual gross sales of not more than five
million dollars. Beginning the first day of January, two
thousand one, and each January thereafter, the tax commissioner
shall prescribe amounts which shall apply, in place of the
amounts stated in this section, during that calendar year. These
amounts shall be prescribed by increasing the amount of each by
the cost-of-living adjustment for that calendar year.
Each small business formed under the laws of the state of
West Virginia and operating within the state is entitled to claim
as a credit against the tax imposed by this chapter for
businesses any amount paid to the United States small business administration (SBA) as a guaranty fee pursuant to the obtaining
of SBA guaranteed financing. This credit shall be applicable
only to the tax year in which the guaranty fee was paid. The
credit may not reduce the tax below the minimum tax where a
minimum tax is provided under this chapter and may only be
claimed by the small business which is the primary obligor in the
financing transaction and which actually paid the guaranty fee.
NOTE: The purpose of this bill is to give small businesses
a tax credit equal to any guaranty fee they pay to the Small
Business Administration in order to obtain SBA financing.
This article is new; therefore, strike-throughs and
underscoring have been omitted.