H. B. 4628
(By Delegates White, Boggs, Kominar
and Campbell,(By Request))
[Introduced February 18, 2008; referred to the
Committee on Finance.]
A Bill to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-13Q-22, relating
to providing a tax credit for new job creation by certain
taxpayers.
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 §11-13Q-22, to read as
follows:
ARTICLE 13Q. ECONOMIC OPPORTUNITY TAX CREDIT.
§11-13Q-22. Credit available for taxpayers which do not satisfy
the new jobs percentage requirement.
(a) Notwithstanding any provision of this article to the
contrary, a taxpayer engaged in one or more of the industries or
business activities specified in section nineteen of this article
which does not satisfy the new jobs percentage requirement prescribed in subsection (c), section nine, of this article, or if
the taxpayer is a small business as defined in section ten of this
article, does not create at least ten new jobs within twelve months
after placing qualified investment into service as required by
section ten of this article, but which otherwise fulfills the
requirements prescribed in this article, is permitted to claim a
credit against the taxes specified in section seven of this article
in the order so specified that are attributable to and the
consequence of the taxpayer's business operations in this state,
which result in the creation of net new jobs. Credit under this
section is allowed in the amount of three thousand dollars per
year, per new job created and filled by a new employee; as those
terms are defined in section three of this article for a period of
five consecutive years beginning in the tax year when the new
employee is first hired. In no case may the number of new
employees determined for purposes of this section exceed the total
net increase in the taxpayer's employment in this state. Credit
allowed under this section shall be allowed beginning in the tax
year when the new employee is first hired: Provided, That such
jobs:
(1) Pay at least thirty-two thousand dollars annually, and
(2) Provide benefits in addition to such annual salary, and
(3) Are full-time, permanent positions, as those terms are
defined in section three, of this article.
Jobs that pay less than thirty-two thousand dollars annually,
or that pay such salary but do not also provide additional benefits
in addition to such salary, shall not qualify for the credit
authorized by this section. Jobs that are less than full-time,
permanent positions shall not qualify for the credit authorized by
this section.
(b) Unused credit remaining in any tax year after application
against the taxes specified in section seven of this article is
forfeited and does not carry forward to any succeeding tax year and
does not carry back to a prior tax year.
(c) The tax credit authorized by this section may be taken in
addition to any credits allowable under articles thirteen-c,
thirteen-d, thirteen-e, thirteen-f, thirteen-g, thirteen-j,
thirteen-r or thirteen-s of this chapter.
(d) Reduction in number of employees credit forfeiture -- If
during the year when a new job was created for which credit was
granted under this section or during any of the next succeeding
four tax years thereafter, net jobs that are attributable to and
the consequence of the taxpayer's business operations in this
state, decrease, counting both new jobs for which credit was
granted under this section and preexisting jobs, then the total
amount of credit to which the taxpayer is entitled under this
section shall be decreased and forfeited in the amount of three
thousand dollars for each net job lost.
NOTE: The purpose of this bill is to provide a tax credit to
taxpayers which do not satisfy the new jobs percentage requirement
prescribed for the credit allowed under chapter eleven, article
thirteen Q.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.