H. B. 2620
(By Delegate Michael)
[Introduced March 19, 1997; referred to the
Committee on Finance.]
A BILL to amend and reenact section eight, article one, chapter
five-e of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to the total amount of
credits which may be authorized in under the capital company
act in any fiscal year.
Be it enacted by the Legislature of West Virginia:
That section eight, article one, chapter five-e of the code of
West Virginia, one thousand nine hundred thirty-one, be amended, be
amend and reenacted to read as follows:
ARTICLE 1. WEST VIRGINIA CAPITAL COMPANY ACT.
§5E-1-8. Tax credits.
(a) The total amount of tax credits authorized for a single
qualified company may not exceed two million dollars.
Capitalization of the company may be increased pursuant to rule of
the authority.
(b) The total credits authorized by the authority for all
companies may not exceed a total of
ten five million dollars each
fiscal year:
Provided, That
for the fiscal year beginning the
first day of July, one thousand nine hundred ninety-two, the total
credits authorized by the authority for all companies under this
section or this article may not exceed a total of eight million
dollars each fiscal year: Provided, however, That for the fiscal
year beginning on the first day of July, one thousand nine hundred
ninety-three, and the fiscal year one thousand nine hundred
ninety-four, the total credits authorized for all companies under
this article may not exceed a total of five million dollars:
Provided further, That for the fiscal year beginning the first day
of July, one thousand nine hundred ninety-three, and for each
fiscal year thereafter, the authority shall, for the first one
hundred eighty days of the fiscal year, accept applications only
from companies who certify in their application that the investment
of its entire capital base will be in one or more small business
investment corporations organized under the small business
investment act:
And provided further Provided, however, That the
capital base of any such qualified company shall be invested in
accordance with the provisions of this article. The authority
shall allocate these credits to qualified companies in the order
that said companies are qualified.
(c) Any investor, including an individual, partnership or corporation who makes a capital investment in a qualified West
Virginia capital company, is entitled to a tax credit equal to
fifty percent of the investment, except as otherwise provided in
this section or in this article. The credit allowed by this
article shall be taken after all other credits allowed by chapter
eleven of this code. It shall be taken against the same taxes and
in the same order as set forth in subsections (c) through (i),
section five, article thirteen-c of said chapter. The credit for
investments by a partnership or by a corporation electing to be
treated as a Subchapter S corporation may be divided pursuant to
election of partners or shareholders.
(d) The tax credit allowed under this section is to be
credited against the taxpayer's tax liability for the taxable year
in which the investment in a qualified West Virginia capital
company is made. If the amount of the tax credit exceeds the
taxpayer's tax liability for the taxable year, the amount of the
credit which exceeds the tax liability for the taxable year may be
carried to succeeding taxable years until used in full, or until
forfeited:
Provided, That: (i) Tax credits may not be carried
forward beyond fifteen years; and (ii) tax credits may not be
carried back to prior taxable years. Any tax credit remaining
after the fifteenth taxable year is forfeited.
(e) The tax credit provided for in this section is available
only to those taxpayers whose investment in a qualified West Virginia capital company occurs after the first day of July, one
thousand nine hundred eighty-six.
(f) The tax credit allowed under this section may not be used
against any liability the taxpayer may have for interest, penalties
or additions to tax.
(g) Notwithstanding any provision in this code to the
contrary, the tax commissioner shall publish in the state register
the name and address of every taxpayer, and the amount, by
category, of any credit asserted under this article.
for any tax
year beginning on or after the first day of January, one thousand
nine hundred ninety-one The categories by dollar amount of credit
received shall be as follows:
(1) More than $1.00, but not more than $50,000;
(2) More than $50,000, but not more than $100,000;
(3) More than $100,000, but not more than $250,000;
(4) More than $250,000, but not more than $500,000;
(5) More than $500,000, but not more than $1,000,000;
(6) More than $1,000,000.
NOTE:The purpose of this bill is to permanently reduce the
amount of credits authorized under the West Virginia Capital
Company Act to five million dollars in any fiscal year.