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Introduced Version House Bill 4682 History

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Key: Green = existing Code. Red = new code to be enacted

FISCAL NOTEWEST virginia Legislature

2016 regular session

Introduced

House Bill 4682

By Delegates Skinner, Manchin, Westfall, McCuskey, Pushkin, Fleischauer, Byrd, Miley, Caputo, Longstreth and Sponaugle

[Introduced February 23, 2016; Referred
to the Committee on Agriculture and Natural Resources then Finance.]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §11-16A-1, §11-16A-2, §11-16A-3 and §11-16A-4, all relating to the agriculture and tourism incentive act; defining applicability; providing a tax credit for capital expenditures; limiting local control and providing policies that must be followed in the event of a sale of the business.

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 §11-16A-1, §11-16A-2, §11-16A-3 and §11-16A-4, all to read as follows:

ARTICLE 16A. the agriculture and tourism incentive act.

§11-16A-1. Applicability of article.


The provisions of this article apply to wineries, farm wineries, micro-breweries and mini-distilleries as defined elsewhere in this code.

§11-16A-2. Capital expenditures tax credit.


(a) As used in this section:

“Qualified capital expenditures” means all expenditures made by the taxpayer for the purchase and instillation of barrels, bins, bottling equipment, capsulating equipment, chemicals, corkers, crushers and destemmers, dirt, fermenters, or other recognized fermentation or distillation devices, fertilizer and soil amendments, filters, grape harvesters, grape plants, hoses irrigation equipment labeling equipment, poles, posts, presses, pumps, refractometers, refrigeration equipment, seeders, tanks or vats, tractors, weeding and spraying equipment, wine, beer or alcoholic beverage tanks and wire.

(b) For taxable years beginning on or after July 1, 2016, through June 30, 2022, any winery, farm winery, microbrewer or mini-distiller is entitled to a credit against the tax levied pursuant to article twenty-one of this chapter for qualified capital expenditures made in connection with the establishment of a new winery, farm winery, micro-brewery or mini-distillery and capital improvements made to existing wineries, farm wineries, micro-brewers or mini-distillers.  The amount of the credit is equal to twenty-five percent of all the qualified capital expenditures.

(c) The total amount of tax credits available under this section for a calendar year may not exceed $250,000.  In the event that applications for such credit exceed $250,000 for any calendar year, the Department of Revenue shall allocate the credits on a pro rata basis.

(d) If the amount of the tax credit exceeds the tax payer’s tax liability for the taxable year, the excess may be carried over for credit against the applicable taxes of the taxpayer in the next ten taxable years, or until the total tax credit amount has been taken, whichever occurs first.

(e) For the purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation ( S corporation) or limited liability company shall be allocated to the individual partners, shareholders or members, respectively, in proportion to their ownership or interest in such business entity.

(f) The credit allowed in this section may not be claimed to the extent the taxpayer has claimed a deduction for the same expenses for federal income tax purposes under §179 of the Internal Revenue Code.

§11-16A-3. Locale regulation of activities limited.


(a) Usual and customary events at wineries, farm wineries, micro-breweries and mini-distilleries are permitted without local regulation unless there is a substantial impact on the health, safety or welfare of the public.

(b) No locality may treat private, personal gatherings held by the owner of a winery or farm winery who resides at the location or on property adjacent thereto that is owned or controlled by such owner at which gatherings wine is not sold or marketed and for which no consideration is received by the winery or farm winery or its agents differently from a private personal gathering by other citizens.

(c) No locality may regulate any activity of a winery, farm winery, micro-brewery or mini-distillery which is authorized by state law.

§11-16A-4. Sale of winery, farm winery, micro-brewery or mini-distillery.


If any winery, farm winery, micro-brewery or mini-distillery is sold, the new owner shall honor any existing sale or distribution agreements of the former owner for any brands of product sold.

 

NOTE: The purpose of this bill is to enact the agricultural and tourism development act. It covers wineries, farm wineries, micro-breweries, and mini-distilleries. A tax credit is provided for capital expenditures, local regulation is limited and the consequences of a sale of the business are enunciated.

Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.

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