H. B. 2870
(By Delegates Beach, Kelley, Proudfoot, Boggs, Buchanan,
Damron
and Dempsey)
(Originating in the Committee on
Agriculture and Natural Resources)
[March 28, 1997]
A BILL to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article thirteen-m,
relating to allowing a tax credit of two hundred fifty
dollars per full-time hourly employee for eligible taxpayers
engaged in new wood manufacturing operations producing
consumer ready products and beginning operation within this
state after the first day of July, one thousand nine hundred
ninety-seven.
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article thirteen-m, to
read as follows:
ARTICLE 13M. TAX CREDIT FOR NEW WOOD MANUFACTURING OPERATIONS
AFTER JULY 1, 1997.
§11-13M-1. Legislative purpose.
The Legislature finds that production of consumer ready wood
products is very important to the economy of this state, and that
a sound economy is in the public interest and promotes the
general welfare of the people of this state. In order to
encourage capital investment in this state, through the
production of consumer ready wood products
on or after the first
day of July, o
ne thousand nine hundred ninety-seven, thereby
increasing employment and economic development, there is hereby
provided a tax credit allowed to eligible taxpayers for each
full-time hourly employee in a new wood manufacturing facility
beginning operation within this state on or after the first day
of July, one thousand nine hundred ninety-seven
.
§11-13M-2. Credit allowed; amount and duration of credit;
recapture of credit and effective date.
(a) There shall be allowed to eligible taxpayers a credit
against the taxes imposed in articles twenty-one, twenty-three
and twenty-four of this chapter. For the purpose of this
article, "eligible taxpayer" means a person, firm, partnership,
corporation or other entity commencing new production of consumer
ready wood products on or after the first day of July, one
thousand nine hundred ninety-seven within this state and that
employs full-time hourly employees. For the purposes of this
article, "new production of consumer ready wood products" means
the production of retail wood products in a new wood
manufacturing facility beginning operation on or after the first day of July, one thousand nine hundred ninety-seven and located
within the state by a sole proprietorship, partnership,
corporation, limited liability company or limited liability
partnership. For the purpose of this article, "full-time hourly
employee" means an employee working 1,800 hours or more for the
eligible taxpayer within a twelve month period during the
eligible taxpayer's tax year. This credit shall be in an amount
equal to two hundred fifty dollars for each full-time hourly
employee engaged in the production of consumer ready wood
products at a wood manufacturing facility located within this
state. This credit shall be allowed annually for eligible
taxpayers, and this credit will expire on the first day of July,
two thousand and two.
(b) The credit set forth in this article shall apply to
personal income tax liabilities, corporation net income tax
liabilities and business franchise tax liabilities arising on or
after the first day of July, one thousand nine hundred ninety- seven.
§11-13M-3. Application of credit; limitation of credit; tax
commissioner to promulgate forms and legislative
rule; notice of credit.
(a) The credit allowed in this article shall be first
applied to a taxpayer's business franchise tax liability, and
then to either the taxpayer's personal income tax liability or
corporation net income tax liability, as the case may be.
(b) The credit allowed in this article may not exceed the total tax liability for all state taxes for a given tax year and,
if the tax credit exceeds the taxpayer's total tax liability, no
refund is allowed. No carryover to a subsequent taxable year or
carry back to a prior taxable year is allowed for the amount of
any unused portion of this credit.
(c) The state tax commissioner shall propose legislative
rules to be promulgated pursuant to chapter twenty-nine-a of this
code regarding the applicability, method of claiming of the
credit, recapture of the credit and documentation necessary to
claim the credit herein allowed.
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