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Tangible personal property acquired by written lease having a primary term of four (4) or more years that was commenced and

executed on or after July 1, 1987.

Tangible personal property owned or leased, used at a business location outside this State which is moved into this State on or after

July 1, 1987. If owned, property must be depreciable or amortizable and have a useful life of four (4) or more years remaining

at the time the property is placed in service or use in this State. If leased property, the primary term of the lease remaining at the

time the property is placed in service or use in this State, must be four (4) or more years.

NOT

QUALIFIED INVESTMENT PROPERTY MAY

INCLUDE:

Property owned or leased, for which the Tax Credit for Industrial Expansion (former W.Va. Code § 11-13C-1 et seq., repealed April

13, 1985); Tax Credit for Industrial Expansion and Revitalization and for Research and Development Projects (W.Va. Code §

11-13D-1 et seq.) et al; Tax Credit for Coal Loading Facilities (W.Va. Code § 11-13E-1 et seq.); has been taken.

Repair costs, unless capitalized for federal income tax purposes.

Airplanes.

Property which is primarily used outside this State.

Property which is acquired incident to the purchase of the stock or assets of the seller. This restriction can be waived by the Tax

Commissioner.

Natural resources in place purchased or leased prior to March 10, 1990, and not subject to a statutory transition rule or prior to

March 1, 1985, or pursuant to an option acquired prior to March 1, 1985 but exercised on or after March 10, 1990.

Property purchased or leased on or after March 10, 1990, the cost of which cannot be quantified when such property is placed

in service.

Generally, property acquired from a related taxpayer or by one component member of a controlled group from another member of

the same group or property which has a carryover federal income tax basis in the hands of the purchaser will not qualify as investment

property.

DATE PLACED IN SERVICE OR USE

Property is considered to be placed in service or use in the earlier of:

The taxable year in which, under the taxpayer’s depreciation practice, the period for depreciation for such property begins.

The taxable year in which the property is placed in a condition or state of readiness and availability for a specifically assigned function.

REQUIRED RECORDS

A taxpayer claiming this tax credit must maintain records to establish, for each item of qualified property:

(1) Its identity.

(2) Its actual or reasonably determined cost.

(3) Its straight line depreciation.

(4) The month and taxable year in which it was placed in service.

(5) The amount of credit taken.

(6) The date it was disposed of or otherwise ceased to be qualified property.

Such records must be retained for a period of three (3) years after the last year for which the credit is claimed.

The tax credit computation schedule is designed to accommodate all or any part of these tax credits. Contained within the schedule and

in the instructions for completing this schedule is more detailed information for completion of the Small Business Investment and Jobs

Expansion Credit.

COST OR OTHER BASIS

The cost of purchased property may not include the value of property given in trade or exchange for the property purchased.

The cost of replacement property may not include any insurance proceeds received as compensation for property damaged or

destroyed by fire, flood, storm or other casualty or stolen.

Wv/bcs-Small - West Virginia Small Business Investment And Jobs Expansion Tax Credit Page 3