COMMITTEE SUBSTITUTE
FOR
H. B. 2620
(By Delegates Michael)
(Originating in the Committee on Finance)
[March 25, 1997]
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; reducing the amount of
authorized credit to six million dollars for one 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 million dollars each
fiscal year:
Provided, That
for the fiscal year ending on the
thirtieth day of June, one thousand nine hundred ninety-eight,
the total credits authorized for all companies may not exceed a
total of six million dollars. 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 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.