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Column 6.

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 V, Section 1.

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 compen-

sation 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 compen-

sation 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 is completed.

Column 8.

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

The 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 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.

Form Wv/bcs-1 - Business Investment And Jobs Expansion Credit And Corporate Headquarters Relocation Credit (Super Credits) - Page 11

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