COMMITTEE SUBSTITUTE
FOR
H. B. 2945
(By Klempa, Moore, D. Poling,
Rodighiero, Ellis, Iaquinta,
J. Miller, Pethtel,
Fragale and Hutchins)
(Originating in the Committee on Finance)
[February 22, 2007]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §11-13W-1, relating
to providing for tax credits for apprenticeship training in
construction trades.
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 article, designated §11-13W-1, to read as
follows:
ARTICLE 13W. APPRENTICESHIP TRAINING TAX CREDITS.
§11-13W-1. Tax credits for apprenticeship training in construction
trades.
(a) Credit allowed. - For those tax years beginning on or
after the first day of January, two thousand eight, there shall be
allowed a credit for any taxpayer against certain taxes imposed by
this state as described in subsection (d) of this section for wages
paid to apprentices in the construction trades, by such taxpayer in
the tax year that an apprentice and taxpayer participate in a qualified apprenticeship training program, as described in this
section, which: (1) Is jointly administered by labor and
management trustees; (2) is administered pursuant to 29 U.S.C.
Section 186(c); and (3) is certified in accordance with regulations
adopted by the United States Bureau of Apprenticeship and Training.
(b) Amount of credit. - The tax credit shall be in an amount
equal to one dollar per hour multiplied by the total number of
hours worked during the tax year by an apprentice working for the
taxpayer participating in the qualified apprenticeship training
program, provided the amount of credit allowed for any tax year
with respect to each such apprentice may not exceed one thousand
dollars or fifty percent of actual wages paid in such tax year for
such apprenticeship, whichever is less.
(c) Qualified apprenticeship training program requirements. -
In addition to the qualifications specified in subsection (a) of
this section, a qualified apprenticeship training program shall
also be required to consist of at least two thousand but not more
than ten thousand hours of on the job apprenticeship training for
certification of such apprenticeship by the United States Bureau of
Apprenticeship and Training.
(d) Application of annual credit allowance. - The amount of
credit as determined under subsection (b) of this section is
allowed as a credit against the taxpayer's state tax liability
applied as provided in subdivisions (1) through (3), inclusive, of
this subsection, and in that order.
(1) Business franchise tax. -- The credit must first be applied to reduce the taxes imposed by article twenty-three of this
chapter for the taxable year.
(2) Corporation net income taxes. - After application of
subdivision (1) of this subsection, any unused credit is next
applied to reduce the taxes imposed by article twenty-four of this
chapter for the taxable year.
(3) Personal income taxes. --
(A) If the person making the qualified investment is an
electing small business corporation (as defined in section 1361 of
the United States Internal Revenue Code of 1986, as amended), a
partnership, a limited liability company that is treated as a
partnership for federal income tax purposes, or a sole
proprietorship, then any unused credit (after application of
subdivisions (1) and (2) of this subsection) is allowed as a credit
against the taxes imposed by article twenty-one of this chapter on
the income from business or other activity subject to tax under
article twenty-three of this chapter or on income of a sole
proprietor attributable to the business.
(B) Electing small business corporations, limited liability
companies, partnerships and other unincorporated organizations
shall allocate the credit allowed by this article among its members
in the same manner as profits and losses are allocated for the
taxable year.
(4) No credit is allowed under this section against any
employer withholding taxes imposed by article twenty-one of this
chapter.
(e) Unused credit. -- If any credit remains after application
of subsection (d) of this section, the amount thereof is forfeited.
No carryback to a prior taxable year is allowed for the amount of
any unused portion of any annual credit allowance.