ENROLLED
Senate Bill No. 522
(By Senators Craigo, Sharpe, Jackson, Chafin, Prezioso,
Love, Walker, Bowman, Helmick, Anderson, Unger,
Edgell, Boley, Minear and Sprouse)
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[Passed March 10, 2000; to take effect July 1, 2000.]
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AN ACT to amend and reenact section six, article thirteen-j,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to the neighborhood
investment program; and allowing any taxpayer who makes an
eligible contribution to a qualified charitable organization
to claim the credit against personal income tax.
Be it enacted by the Legislature of West Virginia:
That section six, article thirteen-j, 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 13J. NEIGHBORHOOD INVESTMENT PROGRAM.
§11-13J-6. Application of annual credit allowance.
(a)
In general. -- The aggregate annual credit allowance for
a current tax year is an amount equal to the sum of the following:
(1) The portion allowed under section five of this article for
an eligible contribution placed into service or use during a prior
tax year; plus
(2) The portion allowed under section five of this article for
an eligible contribution placed into service or use during the
current tax year.
(b)
Application of credit allowance. -- The amount determined
under subsection (a) of this section shall be allowed as a credit
for tax years ending on and after the first day of July, one
thousand nine hundred ninety-six, as follows:
(1)
Business franchise taxes. --
The amount determined under subsection (a) of this section
shall be applied to reduce up to fifty percent of the taxes imposed
by article twenty-three of this chapter for the tax year
(determined after application of the credits against tax provided
in section seventeen of said article, but before application of any
other allowable credits against tax).
(2)
Corporation net income taxes. -- After application of
subdivision (1) of this subsection, any unused credit shall next be
applied to reduce up to fifty percent of the taxes imposed by
article twenty-four of this chapter, for the tax year (determined before application of allowable credits against tax).
(3)
Personal income taxes. --
(A) If the eligible taxpayer is an electing small business
corporation (as defined in Section 1361 of the United States
Internal Revenue Code), a limited liability company treated as a
partnership for purposes of the federal income tax, a partnership
or a sole proprietorship, then any unused credit (after application
of subdivisions (1) and (2) of this subsection) shall be allowed as
a credit against up to fifty percent of the taxes imposed by
article twenty-one of this chapter on income of proprietors,
partners or shareholders, subject to the limitations set forth in
paragraphs (B) and (C) of this subdivision.
(B) Electing small business corporations, partnerships and
other unincorporated organizations shall allocate the credit
allowed by this article among the members thereof in the same
manner as profits and losses are allocated for the tax year.
(C) Any taxpayer subject to the personal income tax under
article twenty-one of this chapter, who makes an eligible
contribution to a qualified charitable organization, and receives
back from that organization a properly completed neighborhood
investment program tax credit voucher, is eligible to claim the
credit. The credit shall be allowed without regard to the source of that income, whether it is from wages, passive investment or
retirement income, income from a trade or business or any other
source.
(c)
Unused credit forfeited. -- If any credit to an eligible
taxpayer remains after application of subsections (a) and (b) of
this section, the amount thereof may be carried forward no more
than four years from the tax year in which the contribution was
made. Unused credits of an eligible taxpayer may not be carried
forward beyond the time limits imposed under section five of this
article and the total maximum aggregate tax credits certified in
any state fiscal year may not exceed two million dollars.
(d)
Addition of deductions, decreasing adjustments or
decreasing modifications taken in determining taxable income for
which credit is taken. -- Any deduction, decreasing adjustment or
decreasing modification taken by any taxpayer in determining
federal taxable income which affects West Virginia taxable income
or in determining West Virginia taxable income under article
twenty-one or twenty-four of this chapter for the taxable year for
any charitable contribution, or payment or portion thereof, which
qualifies as an eligible contribution under this article and for
which credit is claimed, shall be added to West Virginia taxable
income in determining the tax liability of the taxpayer under article twenty-one or twenty-four of this chapter, as appropriate,
before application of the credit allowed under this article for the
taxable year.
(e)
Annual limit. -- The aggregate annual credit allowance to
any taxpayer may not exceed one hundred thousand dollars in any tax
year.
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