W. Va. Code R. § 145-7-10 - Tax Credit Allowed
10.1. Who
May Claim Credit. Eligible taxpayers that make eligible contributions pursuant
to a certified project plan may receive a tax credit.
10.2. Amount of credit allowed. The amount of
credit allowed is fifty percent of the taxpayers' eligible contribution. The
minimum eligible contribution of a taxpayer shall be five hundred dollars
($500.00). No contribution of cash, property or professional services or any
combination thereof contributed in any tax year by any taxpayer having a fair
market value of less than five hundred dollars qualifies as an eligible
contribution. The maximum eligible contribution by a taxpayer shall be two
hundred thousand dollars ($200,000.00). No contribution of cash, property or
professional services or any combination thereof contributed in any tax year by
any taxpayer having a fair market value in excess of two hundred thousand
dollars qualifies as an eligible contribution.
10.2.1. Not more than twenty-five percent of
total eligible contributions to a certified project may be in-kind
contributions of professional services. Not more than twenty-five percent of
total eligible contributions made by any taxpayer to any certified project may
be in-kind contributions of professional services.
10.2.2. No tax credit shall be given prior to
the making of an eligible contribution.
10.3. Tax credits are allowable only for the
tax year of the eligible taxpayer in which the eligible contribution is
irrevocably transferred to the project transferee, and for the next succeeding
four years.
10.4. No tax credit
shall be given for any contribution which, if the credit was allowed, the
allowance would cause the amount of tax credit generated by the certified
project to exceed the maximum amount of tax credit for which the project was
certified.
10.5. Application of Tax
Credit. The amount of credit allowable under this program must be taken within
a five-year period beginning with the tax year in which the taxpayer
irrevocably transfers its eligible contribution to the project plan transferee.
The total credit any eligible taxpayer can claim shall not exceed $100,000 in
any tax year of the eligible taxpayer.
10.6. Claiming of Credit on Tax Returns. If
the eligible taxpayer is a sole proprietorship, the credit allowed is applied
to reduce the sole proprietor's personal income tax liability by up to fifty
percent for the tax year. The application of remaining credit will be as
follows:
10.6.1. If the eligible taxpayer is
a C corporation, the remaining credit may be applied to reduce its corporation
net income tax liability by up to fifty percent and is determined before
application of other allowable credits against this tax.
10.6.2. If the eligible taxpayer is an
electing small business corporation (S corporation) or a partnership for
federal income tax purposes, any unused credit may be applied by the
shareholders of the S corporation, the partners in the partnership, or members
of the limited liability company treated as a partnership, to reduce their
liability for West Virginia personal income taxes by up to fifty percent. S
corporations, partnerships and other unincorporated organizations may allocate
the remaining credit among its shareholders, partners or members in the same
manner as profits and losses are allocated for the tax year. Any taxpayer
subject to the personal income tax under Chapter 11, Article 21 of the West
Virginia Code, who makes an eligible contribution to a qualified charitable
organization, and receives back from that organization a properly completed
Neighborhood Investment Program voucher, is eligible to claim the credit. The
credit shall be allowed against the personal income tax liability imposed under
Chapter 11, Article 21 of the West Virginia Code without regard to the source
of that income, whether it is from wages, passive investment income, income
from a trade or business or any other source.
10.7. Forfeiture of Unused Credit. Credits
not used in the year the taxpayer irrevocably transfers its eligible
contribution to the project transferee or the succeeding four years may not be
carried forward and therefore are forfeited. Credits may not be carried back to
a tax year prior to the tax year in which the eligible contribution was made.
10.8. Publication of Who Takes Tax
Credit. Annually, the tax commissioner shall publish in the State Register the
name of every taxpayer claiming a neighborhood assistance credit on a tax
return, as well as the amount of credit asserted by each taxpayer. The
confidentiality provisions of W. Va. Code §§
11-1-4a,
11-10-5d
or any other section do not apply to this information.
Notes
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