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This credit is available to eligible taxpayers for tax years beginning on or after July 1, 1997. For calendar year taxpayers, this

credit will be available beginning in tax year 1998. The credit is scheduled to expire July 1, 2002. The credit may be claimed

against that portion of Business Franchise Tax and Personal Income Tax or Corporation Net Income Tax liability which is

attnbutable to “new jobs” created by the taxpayer’s new consumer-ready wood product facility in this State and/or new

consumer-ready wood product line at an existing manufacturing facility in this State during the taxable year. The maximum

amount of the annual credit is $250 for each new job filled by a full time employee at such a facility during the tax year. Full-time

jobs created by a taxpayer in a short tax year during the taxpayer’s first year of operation, or filled in the year in which this credit

expires, are prorated. The amount of credit which may be applied against the income tax liability which flows through a pass-

through entity to its partners, members or shareholders is allocated in proportion to their ownership interest in the entity.

When credit is erroneously taken, the amount erroneously taken may be recaptured. In addition to recapture of tax, tax-

payer is subject to a ten percent (10%) penalty, which is waivable by the Tax Commissioner, and to payment of interest and

applicable additions to tax. There is a 5-year statute of limitations on credit recapture.

The following terms defined in West Virginia Code § 11-13A-2 are used in these instructions:

“Consumer-ready wood products” means value-added wood products that are ready for sale to consumers at the end of

the manufacturing process. Consumer-ready wood includes any value-added wood product that does not require further manu-

facturing before it may ordinarily be used or consumed by the purchaser of the product, except any product that is not manufac-

tured primarily from wood, any product that is not commercially marketed as a wood product for sale primarily to consumers of

the product, or paper or paper products.

“Eligible taxpayers” means a person who after June 30, 1997 begins manufacturing a consumer-ready wood product at a

new manufacturing facility located in this State, or begins manufacturing a new consumer-ready wood product line at an existing

manufacturing facility located in this State, which results in the creation of new jobs filled by full-time employees.

“Full-time employee” means a permanent hourly employee of an eligible taxpayer, who is a West Virginia domiciled

resident, and works in a new consumer-ready wood product manufacturing facility in this State, or in a new consumer-ready

wood product line of an existing manufacturing facility in this State, more than 1,800 hours during the entire twelve-month period

ending on the last day of the taxable year of the eligible employer, whether these hours are hours worked at the manufacturing

facility, or include hours of employer paid vacation leave or other employer paid leave. Full-time employee does not include an

employee who is a part-time, seasonal or temporary employee.

“New consumer-ready wood product line” means the manufacture of a consumer-ready wood product in an existing

manufacturing facility in this State that first begins manufacturing the new consumer-ready wood product line after June 30,

1997.

“New consumer-ready wood product manufacturing facility” means a building that is primarily used by the eligible

taxpayer to manufacture a consumer-ready wood product that is first placed in service and used for that purpose by the eligible

taxpayer after June 30, 1997.s If the facility was used by the taxpayer, or by a related person, to manufacture tangible personal

property at any time during the twelve months preceding the month in which the facility is first used by the taxpayer to manufac-

ture a consumer-ready wood product, the building is not a new consumer-ready wood product manufacturing facility.

“New job” means a job at a new consumer-ready wood product manufacturing facility located in this State, or at a new

consumer-ready wood product line at an existing manufacturing facility located in this State, which did not exist in this State with

any employer as of the first day of the second calendar month preceding the calendar month in which the new consumer-ready

wood product manufacturing facility begins to manufacture consumer-ready wood products, or in which the new consumer-ready

wood product line begins to manufacture consumer-ready wood products in an existing manufacturing facility located in this

State, that is filled by a full-time employee of the eligible taxpayer.

“Part-time employee” means any employee who normally works twenty-hours or less per week.

“Seasonal employee” means an employee who normally works on a full-time basis less than five months in a year.

“Temporary employee” means an employee performing services under a contractual arrangement with the employer of

two years or less duration.

To claim this credit, this schedule must completed and filed with Summary Schedule TC- Tax Credits and the annual return

for the tax against which this credit is to be applied by the due date of the annual return without regard to extension of time for

filing and payment of tax due.

The following instructions are not a substitute for tax statutes and regulations. They are intended to facilitate the claiming of

this credit. The statutes are codified at West Virginia Code § 11-13M, and the regulations, 110 C.S.R. 13, § 1, et. seq. and may

be obtained from the Secretary of State for a reasonable fee. Questions concerning interpretation of law or these forms and

instructions should be addressed to the West Virginia Department of Tax and Revenue, Taxpayer Services Division, P. O. Box

3784, Charleston, West Virginia 25337-3784. Questions may be answered by calling (304) 558-3333 or by calling the toll-free

number, 1-800-982-8297, if located in West Virginia or area code (614). Additional forms, publications or tax credits schedules

may be obtained from the Internet at the following address:

Form Wv/wp-1 - New Value-Added Wood Manufacturing Operations Tax Credit Schedule (Consumer-Ready Wood Products) Page 4

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