COMMITTEE SUBSTITUTE
for
H. B. 4007
(By Mr. Speaker, Mr. Kiss, and Delegate Ashley)
[By Request of the Executive]
(Originating in the House Committee on Finance)
[February 17, 1998]
A BILL to amend and reenact section four-a, article thirteen-c,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating generally to
allowance, determination, computation and application of
West Virginia corporate headquarters relocation tax credit;
expanding categories of businesses eligible for credits;
specifying how new jobs are determined; allowing multiple
year headquarter relocation projects; permitting use of
alternative apportionment methods when applying credit;
adding definitions; and specifying effective date.
Be it enacted by the Legislature of West Virginia:
That section four-a, article thirteen-c, chapter eleven of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows
ARTICLE 13C. BUSINESS INVESTMENT AND JOBS EXPANSION TAX CREDIT.
§11-13C-4a. Credit allowed for locating corporate headquarters
in this state.
(a)
Credit allowed. -- A corporation that presently has
its corporate headquarters located outside this state that
relocates its corporate headquarters in this state and employs,
on a full-time basis, at its new corporate headquarters
location, at least fifteen people, who are domiciled in this
state, shall be allowed credit under this article, the amount of
which shall be determined as provided in subsection (b).
For
corporate headquarters relocations occurring on and after the
first day of January, one thousand nine hundred ninety-eight,
the restrictions set forth in subsection (a), section fifteen of
this article and the exceptions thereto set forth in subsection
(b) of said section fifteen, shall remain full applicable and in
force and effect for all other tax credits provided or allowable
under this article.
(b)
Determination of credit. -- The amount of credit
allowed by subsection (a) shall be determined at the election of
the taxpayer:
(1) By multiplying its adjusted qualified investment by its
new jobs percentage (as determined under section seven of this
article); or
(2) By multiplying its adjusted qualified investment by ten
percent.
(c) Corporate headquarters relocations after December 31,
1997. For purposes of corporate headquarters relocations
occurring on or after the first day of January, one thousand
nine hundred ninety-eight, and notwithstanding any other
provision of this article to the contrary:
(1) New jobs created in this state by relocation of a
corporate headquarters may include jobs created in this state
within twelve months before or after the month in which the
qualified investment in the corporate headquarters relocation is
placed into service or use in this state by:
(A) Relocation or transfer of employees of the corporation
or employees of a related corporation or related person from an
out of state location to the relocated corporate headquarters in
this state, who (i) are or become employees of the corporation
within twelve months before or after the month in which the
qualified investment in the corporate headquarters is placed
into service or use in this state and (ii) whose regular place
of work is in the corporate headquarters, or
(B) New employees of the corporation whose regular place of
work is in the corporate headquarters.
(2) Multiple year projects certified under section four-b
of this article may be allowed for corporate headquarters
relocations under this section.
(c) (d) Application of credit. -- The credit allowed by
this section shall be applied in the manner prescribed in
section five of this article: Provided, That the amount of
corporation net income taxes against which the credit allowed by
this section may be applied shall be the sum of the corporation
net income tax due on adjusted federal taxable income allocated
to this state under section seven, article twenty-four of this
chapter, plus that portion of the corporation net income tax due
on adjusted federal taxable income apportioned to this state under section seven, article twenty-four of this chapter, that
is further apportioned to the qualified investment using the
payroll factor provided in paragraph (1), subsection (h) of said
section five
or an alternative means of apportionment as
prescribed by the tax commissioner under said section five. For
all other purposes, the credit allowed by this section shall be
treated as credit allowed by section four of this article.
(d) (e) Definitions. -- For purposes of this section:
(1)
Adjusted qualified investment. -- The term "adjusted
qualified investment" means the taxpayer's qualified investment
in the corporate headquarters as determined under section six of
this article
and rules of the tax commissioner, plus the cost of
the reasonable and necessary expenses it incurred to relocate
its corporate headquarters at a location in this state from its
present location outside this state.
(2)
Corporate headquarters. -- The term "corporate
headquarters" means the place at which the corporation has its
commercial domicile and from which the business of the
corporation is primarily conducted.
(3)
Reasonable and necessary expenses incurred to relocate
corporate headquarters. -- The phrase "reasonable and necessary
expenses incurred to relocate corporate headquarters" means only
those expenses incurred and paid by the corporation, to
unrelated third parties, to move its corporate headquarters and
its corporate headquarters employees to this state that are,
upon application by the corporation, determined by the tax commissioner to have been both reasonable and necessary to
effectuate the move.
(4) The corporation. -- For purposes of this section, the
term "the corporation" means the corporation for which the
corporate headquarters is relocated.
(e) (f) Effective date. The credit allowed by this section
as amended in the year one thousand nine hundred ninety-eight
shall be allowable for corporate headquarters placed in service
or use on or after the first day of
February, one thousand nine
hundred eighty-six. January, one thousand nine hundred ninety-
eight.