WEST virginia legislature
2016 regular session
House Bill 4321
By Delegates Foster, Cadle, McGeehan, Butler, Ihle, Azinger, Fast, Moffatt, J. Nelson, Waxman and Summers
[Introduced January 28, 2016; referred to the committee on Industry and Labor then Finance.]
A BILL to amend and reenact §11-13W-1 of the Code of West Virginia, 1931, as amended, relating to tax credits for apprenticeship training in construction trades; and removing requirement that eligibility is limited to programs jointly administered by labor and management trustees.
Be it enacted by the Legislature of West Virginia:
That §11-13W-1 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
§11-13W-1. Tax credits for apprenticeship training in construction trades.
(a) Credit allowed.
- For those tax years beginning on or after January 1, 2008, there
is 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 who are registered with the United
States Department of Labor, Office of Apprenticeship, West Virginia State
Office, by the taxpayer in the tax year that an apprentice and taxpayer
participate in a qualified apprenticeship training program, as described in
this section, which is: (1) Jointly administered
by labor and management trustees; (2) (1) Administered pursuant to 29 U. S. C.
Section 50; and (3) (2) Certified in accordance with regulations
adopted by the United States Bureau of Apprenticeship and Training or the
successor agency of that bureau.
(b) Amount of credit.
- The tax credit
shall be in an amount equal to equals $1 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 However the amount of
credit allowed for any tax year with respect to each such apprentice may
not exceed $1,000 or fifty percent of the actual wages paid in the tax year for
the apprenticeship, whichever is less: Provided, That for tax years
beginning on and after January 1, 2012, the tax credit shall be in an amount
equal to equals $2 per hour multiplied by the total number of hours
worked during the tax year by an apprentice working for the participating
taxpayer, and the amount of credit allowed for any tax year with respect to
each apprentice may not exceed $2,000, or fifty percent of actual wages paid in
that tax year for the apprenticeship, whichever is less.
apprenticeship training program requirements. -- In addition to the
qualifications specified in subsection (a) of this section, a qualified
apprenticeship training program
shall consist consists of at
least two thousand but not more than ten thousand hours of on-the-job
apprenticeship training for certification of the apprenticeship by the United
States Bureau of Apprenticeship and Training or the successor agency of the
(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) A credit is not 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, that amount is forfeited. A carryback to a prior taxable year is not allowed for the amount of any unused portion of any annual credit allowance.
NOTE: The purpose of this bill is to remove the requirement that programs be jointly administered by labor and management trustees in order to qualify for tax credits for apprenticeship training in construction trades.
Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.