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Line 3. Multiply the amount on line 1 by the percentage on line 2. This is the total allowable credit for qualifying investment made this

year in property for which the cost is not quantifiable.

Line 4. The taxable year percentage is ten percent (.10).

Line 5. Multiply the amount on line 3 by the percentage on line 4. This is the credit allowable each year for ten successive years beginning

with the year in which the royalties or payments were made.

Line 6. Beginning with the second year of the ten (10) year credit period, the amount of credit available is the sum of the annual credit

as computed for the second year and the annual credit as computed for the first year. This process is followed in succeeding years until the

total allowable credit computed separately for each of the ten (10) successive years is used or forfeited.

Enter on line 6, beginning with the second year, the cumulative amount of annual credit allowance for a prior year or years from

nonquantifiable investment.

Line 7. Add the amounts on lines 5 and 6. This is the amount of credit available for this taxable year from nonquantifiable investment.

PART IV - TAX CREDIT COMPUTATION SCHEDULE

The credit may be applied to the taxes as listed and must be applied in the order shown.

Column 1.

Enter your tax liability, if any, for each of the taxes listed, determined before application of any other allowable credits or

exemptions. In the case of Business Franchise Tax, the tax liability is the amount remaining after deductions for any

Subsidiary Credit, Business and Occupation Tax Credit and Bank Shares Tax Credit available to the taxpayer.

Column 2.

Enter the payroll factor calculated in Part II, Section 2.

Column 3.

Multiply the tax liability in column 1, for each of the taxes by the payroll factor in Column 2 (where applicable), and enter

the result in Column 3. This is the amount of tax liability attributable to the qualified investment.

The credits may be used to offset eighty percent (80%) of the tax attributable to the qualified investment of the taxes listed.

The credits must be claimed against the taxes in the order shown.

Legislation enacted in early 1990 eliminated the application of the Business Investment and Jobs Expansion Credit against

the West Virginia Severance Tax. As a result, line (b)(Severance Tax) should be skipped unless the qualified investment

was placed into service or use prior to January 1, 1990 or the taxpayer qualified under one of the transition rules of W. Va.

Code § 11-13C-14 and filed Form WV/BCS- SEV (Notice of Intent to Claim Credit Against Severance Tax) with the

Department on or before July 2, 1990.

Column 4.

Multiply the amounts in Column 3 by the percentages shown and enter the result in Column 4.

Column 5.

Enter the amount of your annual credit allowance that you are applying to each of the taxes listed. The annual credit

allowance is applied to the first of the listed taxes to which you are subject. If the annual credit allowance is used up, you

may then use any rebate credit carried forward from prior years against tax subject to credit. If there is annual credit

allowance or rebate credit carried forward from prior years remaining after that application, it is next applied to the second

of the listed taxes. Follow this procedure for each of the taxes to which you are subject, carefully monitoring the application

to see that the amount of the annual credit allowance used does not exceed the annual credit allowance available and/or

rebate credit carried forward from prior years. Add the amounts in Column 5 and enter the result on line g, Column 5.

If the annual credit allowance and rebate credit carried forward from prior years is absorbed in the application to the various

taxes, you will have no entries for Columns 6 and 7. If the annual allowance is absorbed you will not need to complete Part

If, after application to the various taxes, you have annual credit allowance or rebate credit carried forward from prior years

remaining, the unused credit is applied as a rebate of: 80% of ad valorem property taxes on all property attributable to the

qualified investment; 80% of unemployment compensation tax attributable to the compensation of new employees, filling

the new jobs that are attributable to the qualified investment; and 20% of workers compensation premiums attributable to

the compensation paid to new employees, filling the new jobs that are attributable to the qualified investment.

The rebate amount, or the remaining credit, whichever is less, may be applied to the remaining 20% of the various taxes

attributable to the qualified investment.

Subtract the amount in Column 4, if any, for each of the taxes from the amount in Column 3 and enter the result in Column

6. This is the amount of taxes against which the rebate may be applied. Add the amounts in Column 6 and enter the result

on line g, Column 6.

Column 7.

This column cannot be completed until Part V through Section 2, Line (g) is completed. Enter the smaller of Part V, Section

2, Line (g) and Part IV, Column 6. (The total of the entries in column 7 cannot exceed the smaller of Part V, Section 2, Line

(g) and Part IV, Column 6, Line g).

Wv/bcs-Small - West Virginia Small Business Investment And Jobs Expansion Tax Credit Page 10

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