Form Wv/aif-1 - Aerospace Industrial Facility Investments Credit

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SCHEDULE WV/AIF-1
March, 2000
AEROSPACE INDUSTRIAL FACILITY
INVESTMENTS CREDIT
The purpose of the Aerospace Industrial Facility Investments Credit is to encourage the establishment of new industry,
the expansion of existing industry, and the growth and revitalization of aerospace industrial facilities in West Virginia
ELIGIBLE TAXPAYERS
Eligibility for the Aerospace Industrial Facility Investments Credit is limited to taxpayers who operate facilities used for
the manufacturing rebuilding or physical refurbishment of:
1. Aircraft, aircraft engines, aircraft engine parts, other aircraft parts, aircraft auxiliary equipment
2. Guided missiles, space vehicles, guided missile and space vehicle propulsion units, guided missile parts, propellers,
space vehicle parts, or guided missile and space vehicle auxiliary parts.
AMOUNT OF CREDIT
The tax credit shall be limited to 15% (1.5% for each of ten consecutive years) of the total qualified investment in a
qualified aerospace industrial facility. The amount of credit utilized in any given year shall not reduce the taxpayer’s liability
for Business Franchise Tax and Corporation Net Income Tax (in combination with all other allowable investment credits) by
more than 60%. Any unused credit for a particular year is forfeited.
PROPERTY PURCHASED FOR AN AEROSPACE INDUSTRIAL FACILITY
Property purchased for an aerospace industrial facility is defined as all real property and improvements thereto and
new tangible personal property, but only if such property is constructed or purchased for use as a component part of a new,
expanded, or ongoing aerospace industrial facility of an industrial taxpayer. Tangible personal property is included within the
above definition only if depreciation or amortization, in lieu of depreciation, is allowable in determining federal personal or
corporation net income tax. The property must have a useful life of four years or more. Useful life is defined as the period
over which the asset may reasonably be expected to be useful in the taxpayer’s business.
LEASING OF PROPERTY
The leasing of property for a term of ten years or longer, if used as a component part of a new, expanded, or ongoing
aerospace industrial facility is considered property purchased for aerospace facility expansion or revitalization. Lease re-
newals, subleases or assignments shall not be considered, however.
INELIGIBLE PROPERTY
Property purchased for an aerospace industrial facility does not include the following:
1. Natural Resources in place;
2. Non-quantifiable leases of real or tangible personal property;
3. Property purchased, or leased, or placed in service or use prior to July 1, 1998;
4. Property in use by another party in West Virginia within 90 days of transfer;
5. Property acquisitions from a related party;
6. Property which qualifies or was qualified for the Business Investment and Jobs Expansion Credit (W.Va. Code 11-
13C-1 et seq.) or the Industrial Expansion and Revitalization and Research and Development Credits (W. Va. Code
11-13D-1 et seq.);
7. Repair costs unless the cost is capitalized for federal income tax purposes;
8. Investment in airplanes;
9. Property located or primarily used outside of West Virginia and
10. Investment property acquired incident to the purchase of a business organization through transfer of stock, owner-
ship interests or assets thereof.

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