Senate Bill No. 540
(By Senators Helmick, Minard and Guills)
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[Introduced February 9, 2007; referred to the Committee on
Finance.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-24-11b, relating
to providing tax credits for utility taxpayers with a net
operating loss prior to the thirty-first day of December, two
thousand six.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-24-11b, to read as
follows:
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-11b. Credit for utility taxpayers with net operating loss
carryovers.
(a)
General. -- There shall be allowed to every eligible
taxpayer a nonrefundable credit against its primary tax liability
imposed under this article for any net operating loss carryovers that exist as of the thirty-first day of December, two thousand
six.
(b) (1) "Eligible taxpayer" means any person subject to the
business and occupation taxes prescribed by article thirteen of
this chapter and exercising any privilege taxable under section
two-o of this article.
(2) "Eligible taxpayer" also includes an affiliated group of
taxpayers if the group elects to file a consolidated corporation
net income tax return under this article if one or more affiliates
included in the affiliated group would qualify as an eligible
taxpayer under subdivision (1) of this subsection.
(c)
Amount of credit. -- The amount of credit allowed shall be
equal to one-quarter percent of the eligible taxpayer's West
Virginia net operating loss carryovers allowed by subsection (d),
section six of this article that exist as of the thirty-first day
of December, two thousand six.
(d)
Application of credit. -- The amount of credit allowed
shall be taken against the tax liabilities of the eligible taxpayer
under this article as shown on its annual return for the taxable
year in which its net operating loss carryovers are utilized, as
provided in subsection (d), section six of this article. Any
credit remaining after application against the eligible taxpayer's
tax liabilities for the current year may be carried forward to
subsequent tax years until used.
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(NOTE: The purpose of this bill is to create a nonrefundable
tax credit to provide transitional relief to eligible taxpayers who
incurred West Virginia net operating loss carryovers prior to the
thirty-first day of December, two thousand six, to ensure that the
value of such net operating loss carryovers are not impaired by the
corporate net income tax rate changes enacted in two thousand six.
This section is new; therefore, strike-throughs and
underscoring have been omitted.)
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