Form Wv/bcs-1 - Business Investment And Jobs Expansion Credit And Corporate Headquarters Relocation Credit (Super Credits) -

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WV/BCS-1
Rev. March, 2004
BUSINESS INVESTMENT AND JOBS EXPANSION CREDIT
AND CORPORATE HEADQUARTERS RELOCATION CREDIT
(SUPER CREDITS)
The following information, instructions, and forms are not a substitute for tax laws and regulations.
GENERAL INFORMATION
BUSINESS INVESTMENT AND JOBS EXPANSION CREDIT
The Business Investment and Jobs Expansion Credit was enacted in 1985 by the State Legislature. The purpose
of the Business Investment and Jobs Expansion Tax Credit is to promote net employment growth within West Virginia.
In return for net employment growth (e.g., fifty new jobs) through capital investment, the State provides tax credit to
offset the additional taxes directly attributable to the qualified investment and new jobs.
The credit is available to any eligible taxpayer, or group of project participant taxpayers, making a qualified
investment in a new or expanded business facility in this State. This investment must also result in new job creation.
The credit is determined by multiplying the amount of the taxpayer’s qualified investment by the taxpayer’s new
jobs percentage and is generally applied over a ten (10) year period (at 1/10th per year) beginning in the taxable year
in which the qualified investment is placed in service or use, or, at the taxpayer’s option, in the next succeeding tax
year.
The Business Investment and Jobs Expansion Credit is generally available for investment placed into service or
use over a period of 365 days, beginning on the date when property purchased or leased for business expansion
is first placed into service or use. Provisions are available for multiple party projects and multiple year projects, or
both as long as project certification has been obtained from the Tax Commissioner.
The Business Investment and Jobs Expansion Tax Credit is claimed against that portion of the following taxes,
in the order listed, that are attributable to the qualified investment: Business and Occupation, Telecommunications,
Business Franchise, Corporation Net Income, and Personal Income. The credit is applied in four steps (the annual
credit allowance, the rebate allowance, the deferred allowance, and a free up allowance for certain taxpayers subject
to the minimum coal severance tax) which are explained later.
The credit attributable for one qualified project may not be applied to any tax liability unrelated to that project.
LEGISLATIVE CHANGES
The Super Credit was expanded in 1986 to include certified projects and relocation of corporate headquarters
to the State. In 1987, the Small Business Credit was added (see Form WV/BCS-Small for details relating to the Small
Business Credit). Additional changes involving credit restrictions and new filing requirements were added in 1990.
In 1993 and 1994, the following major revisions were made to restrict the use of the credit:
The credit may not be applied against the Consumers Sales and Service Tax and Use Tax for purchases made
on or after July 1, 1993.
There is a suspension of new credit entitlement for property placed into service or use after April 9, 1993. The
suspension does not apply to manufacturing; information processing; warehousing; goods distribution;
destination-oriented recreation and tourism; or to qualified investments for which credit applications were filed
before April 10, 1993.
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Parent category: Financial