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Failure to maintain the minimum number of new jobs in any year subsequent to the initial three year period (i.e.

years four through ten): The credit is forfeited for any year in question, but may be reinstated for any remaining

year in which the minimum number is attained, thus enabling the taxpayer to utilize the full annual credit

allowance for that taxable year.

3. Failure to maintain the number of jobs necessary to attain a jobs percentage in the 60% to 90% category: The

credit for year(s) affected must be redetermined to reflect the jobs percentage attributable to the actual

employment increase.

4. Credit attributable to property that ceases to be used in this State prior to the end of its categorized useful life

must be recalculated for all tax years according to actual useful life. If the recalcualtion of credit according to

actual useful life results in an overutilization in a previous year, then a reconciliation statement must be filed

with the payment of any additional tax and interest due. Credit attributable to property with a useful life of less

than four years is forfeited for all years.

EXAMPLE

Company A creates 50 new jobs and invests $10 million in equipment with a designated useful life of 8

years in 1987. The credit for Company A is calculated to equal $5,000,000 or $500,000 per year for 10

years. However, Company A moves this equipment to New York in 1992; therefore the equipment’s actual

useful life in West Virginia is reduced to only 5 years. The corresponding credit is reduced according to

the above formula from $5,000,000 to $1,666,667 or $166,667 per year for 10 years. A reconciliation

statement for tax years 1987 through 1992 reflecting an overutilization of credit must be filed with payment

of any additional tax, interest, and penalties owed.

REDETERMINATION IS NOT REQUIRED:

1. For a mere change in the form of conducting business. However, the property must be retained in a business

in this State and the taxpayer must retain a controlling interest in the successor business. Prior to the 1990

law changes, the form of conducting business made a difference for some taxpayers between qualification for

credit and nonqualification for credit. Some businesses met the net jobs increase criteria on a separate basis

but not on a consolidated basis. In these cases, a mere change in the form of conducting business (e.g. from

a separate filing to a combined filing) could result in credit redetermination and credit forfeiture.

2. If the forfeiture occurs because property is stolen, or damaged by fire, flood, storm, or other casualty.

3. If the business is transferred or sold to a successor business in this State. According to laws governing the

credit, any available credit is allowed for subsequent tax years.

The Tax Credit Computation Schedule is designed to accommodate all or any part of these tax credits. Contained

within the schedule and instructions is more detailed information regarding the Business Investment and Jobs

Expansion Credits.

Form Wv/bcs-1 - Business Investment And Jobs Expansion Credit And Corporate Headquarters Relocation Credit (Super Credits) - Page 7