WEST virginia legislature
2017 regular session
Committee Substitute
for
House Bill 2555
By Delegates G. Foster, Fast, Higginbotham, Howell, Frich, Zatezalo, Kelly, Summers, Cowles, Hamrick and Wilson
[Originating in the Committee on Finance;
March 13, 2017]
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; removing requirement that eligibility is limited to programs jointly administered by labor and management trustees; conforming provisions to current law.
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:
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 January 1, 2008, there shall be
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 $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, 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
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.
(c) Qualified
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
bureau.
(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) (2),
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) (1) Corporation net income taxes. - After
application of subdivision (1) of this subsection, any unused credit is next
The credit must first be applied to reduce the taxes imposed by article
twenty-four of this chapter for the taxable year.
(3) (2) Personal income taxes. -- After
application of subdivision (1) of this subsection, any unused credit is next
applied as follows:
(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 subdivision (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) (3) 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.