Schedule C - Credit For Coal Loading Facilities (Page 5 of 6) in pdf

and not expensed;

be eligible for the credit, the property must have been placed

into use in West Virginia during the taxable year.

3. Motor vehicles licensed by the Department of Motor

Vehicles;

The applicable

4. Airplanes;

If useful life is:

percentage is:

5. Off-premise transportation equipment;

33 ⅓%

4 years or more but less than 6 years

66 ⅔%

6. Property located or primarily used outside of West

6 years or more but less than 8 years

100%

Virginia;

8 years or more

7. Property acquired incident to the purchase of the stock

Example:

or assets of an industrial taxpayer, which has been

If a taxpayer purchases for $25,000 after April 1, 1983, a

previously designated property purchased for Business

conveyor belt for use in its coal loading facility which has

Investment and Jobs Expansion Credit, Industrial

a useful life of 6 years, the eligible investment is equal

Expansion or Revitalization Credit, or Research and

to $16,666.66. The eligible investment is calculated by

Development Credit.

multiplying the cost of the equipment, ($25,000), times the

8. Property purchased prior to April 1, 1983.

applicable percentage according to the useful life, (66 ⅔%) to

arrive at $16,666.66. The credit is equal to 10% of the eligible

osT

investment ($1,666.67). This credit must be claimed over a

Net Cost is the net monetary consideration provided for

period of 10 years at a rate of 10% ($166.67) per year.

acquisition of title and/or ownership to the subject property.

Net cost does not include the value of any property given

rEdiT

ECapTurE

in trade or exchange for the property purchased for a coal

Credit attributable to property that ceases to be used in this

loading facility. If property is damaged or destroyed by

State prior to the end of its categorized useful life must be

fire, flood, storm, or other casualty or is stolen, the cost

recalculated for all tax years according to actual useful life.

of replacement shall not include any insurance proceeds

For example, Company C invested $12 million in a coal

received in compensation.

loading facility with a designated useful life of over 8 years

In the case of leased property, net cost shall be the rent

in 2000. The credit for Company C was calculated to equal

reserved for the primary term of the lease, not to exceed 20

$1,200,000 or $120,000 per year for 10 years. However,

years. Lease renewals, subleases or assignments shall not be

Company C closed its facility in 2005, so the facility’s actual

considered.

useful life in West Virginia is reduced to only five years.

The corresponding credit is reduced according to the above

In the case of self-constructed property, the cost thereof shall

formula from $1,200,000 to $400,000 or $40,000 per year.

be the amount properly charged to the capital account for

A reconciliation statement for 2000 through 2005 reflecting

purposes of depreciation.

an over utilization of credit must then be submitted with

payment of additional tax, interest and penalties owed.

ropErTy

urChasEd

ulTiplE

usinEss

sEs

nsTruCTions for

ompuTaTion of

oal

If property is purchased for multiple business uses including

oading

aCiliTiEs

rEdiT

use as a component part of a new expanded or revitalized

coal loading facility together with some other business or

Enter the net costs of the property in Column 1 on

1 1

occupation not qualifying (for example, coal processing), the

the appropriate line determined by the life of the

cost of the property must be apportioned. The apportionment

property.

of multiple-use properties must be thoroughly supported

and explained by separate documents submitted with the

Multiply the net costs in Column 1 by the applicable

2 & 3

application.

percentages in Column 2. Enter the results in

Column 3.

ligiblE

nvEsTmEnT

To determine the amount of investment eligible for the

Add the figures in Column 2 and enter on Line 4.

4 4

Coal Loading Facility Credit, the net cost of each property

This is the taxpayer’s eligible investment.

purchased is multiplied by the applicable percent shown

below according to the useful life of the property. In order to

t West Virginia

Page 2

Schedule C - Credit For Coal Loading Facilities Page 5

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