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Column 8.

Enter the sum of Column 5 and Column 7 for each of the applicable taxes.

The New Twenty Percent Annual Credit Deferral

For tax years ending after May 31, 1993, taxpayers claiming the Business Investment and Jobs Expansion Tax Credit (Super Credit) must

now defer 20% of the value of the annual credit applications until the tenth, eleventh, and twelfth tax years subsequent to the year qualified

investment is placed into service or use. The amount of credit deferment is determined after the calculations have been made for the Super

Credits claimed in step one and step two. Twenty percent of the total of the credit claimed is to be carried forward annually until the eleventh

year of the credit. Then, the deferred amount is drawn upon as a credit to be taken against the taxpayer’s liability for business taxes in the

same order as mandated for the taking of the Super Credits. The deferred credits may offset up to one hundred percent (100%) of the tax

liability directly attributable to the qualified investment and new jobs only in the tenth, eleventh and twelfth subsequent tax years. Those with

Severance Tax eligible credits must separate the deferrals of those credits from other credit deferrals.

Column 9.

Enter 20% of Column 8. This amount is a reduction of the credit actually claimed, not of the credit available.

Column 10.

Subtract Column 9 from Column 8 and enter the result. Enter the result of line g, Column 10 on Part VII, Section 1 (d) for

the applicable year.

The New Additional Allowance for Minimum Coal Severance Taxpayers

(“Free-Up" Credit) - W.Va. Code § 11-13C-5 (p)

Beginning June 1, 1993, the Minimum Coal Severance Tax rate increases from 50 cents per ton to 75 cents per ton. To lessen the

impact on taxpayers affected by the increased minimum tax on coal, these taxpayers may possibly be able to free-up a portion of the credit

previously calculated. The value of this free-up credit is equal to the lesser of (a) one-third of the taxpayer’s minimum severance tax on coal

(i.e. the minimum tax imposed at a rate of 75 cents) or (b) the amount of the taxpayer’s net minimum severance tax on coal. The net minimum

severance tax on coal is the amount of the State Severance Tax on coal severed and extracted by the taxpayer after application of available

Super Credits and the annual $500 exemption.

Free-up credit may be used against Business Franchise Tax, Corporation Net Income Tax and Personal Income Tax.

Column 11.

Subtract Column 10 from Column 3. This free-up credit may be used against Business Franchise Tax, Corporation Net

Income Tax, and Personal Income Tax.

Column 12.

Enter the amount from Part VI, line 9 applicable to Business Franchise Tax, Corporation Net Income Tax and Personal

Income Tax liabilities.

Column 13.

Enter the sum of the entries in Column 10 and Column 12 for each of the listed taxes in the amount to be claimed as credit

on the appropriate annual returns filed.

Part V - REBATE

Section 1 Determination of Maximum Rebate Allowable

Line a, Column 1. Enter the total amount of ad valorem property taxes imposed and paid pursuant to West Virginia Code § 11-8, for the

taxable year.

Line a, Column 2. Enter the amount of such property taxes imposed and paid that are directly attributable to the qualified investment in a

new or expanded business facility, for the taxable year. Multiply the amount in Column 2, line a by the percentage shown

in Column 3, line a and enter the result in Column 4, line a.

Line b, Column 1. Enter the total amount of Unemployment Compensation Tax imposed and paid under West Virginia Code § 21A-5, for

the taxable year.

Line b, Column 2. Enter the amount of such tax imposed and paid that is directly attributable to the compensation of new employees filling

the new jobs that are attributable to the qualified investment. Multiply the amount in Column 2, line b by the percentage

shown in Column 3, line b and enter the result in Column 4, line b.

Line c, Column 1. Enter the total amount of Workers Compensation premiums imposed and paid under West Virginia Code § 23-2, for the

taxable year.

Line c, Column 2. Enter the amount of such premiums imposed and paid that is attributable to the compensation paid new employees filling

the new jobs that are directly attributable to the qualified investment.

Multiply the amount in Column 2 line c by the percentage shown in Column 3, line c and enter the result in the Column

Wv/bcs-Small - West Virginia Small Business Investment And Jobs Expansion Tax Credit Page 11

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