Senate Bill No. 368
(By Senators Craigo, Anderson, Bailey, Chafin, Helmick, Jackson,
Love, Macnaughtan, Plymale, Prezioso, Sharpe, Walker, Boley, Dugan,
McKenzie, Minear and Sprouse)
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[Originating in the Committee on Finance;
reported March 18, 1997.]
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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 generally to the West
Virginia capital company act and reducing the total tax
credits to all companies, which the West Virginia economic
development authority may authorize.
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, as amended, be
amended 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 each fiscal year, accept applications
only from companies who certify in their application that the
investment of its their 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 the 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 have been taken. It shall be taken against the
same taxes and in the same order as set forth in subsections (c)
through (i), inclusive, section five, article thirteen-c, said
chapter eleven of this code. 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 the election of
the 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 forward to succeeding taxable years until the credit is
used in full, or until the credit is 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.
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