Form Wv/nipa-2 - West Virginia Neighborhood Investment Program Credit Schedule printable pdf download

WV/NIPA-2

(Rev. 09/11)

WEST VIRGINIA

NEIGHBORHOOD INVESTMENT PROGRAM

CREDIT SCHEDULE

GENERAL INFORMATION

The West Virginia Neighborhood Investment Program Act (W. Va. Code § 11-13J) provides credit to individuals and private

sector businesses which make eligible contributions to community based nonprofit organizations that establish projects to

assist neighborhoods and local communities. These projects provide services such as health care, counseling, emergency

assistance, crime prevention, education, housing, job training and physical and environmental improvements.

Eligible projects are determined by application to the West Virginia Development Office and The Neighborhood Investment

Advisory Board through one of two approaches:

1. qualification based on contributions destined for a certified economically disadvantaged area; or

2. qualification by need (regardless of location).

Contributions eligible for the credit include cash, tangible personal property (valued at its fair market value), real property

(valued at its fair market value), and contributions of in kind professional services (valued at 75 percent of their fair market

value). Effective June 10, 1999, eligible contributions were expanded to include publicly traded corporate stock, with the

requirement that such stock must be sold within one hundred eighty (180) days after its receipt by the transferee. No taxpayer

is allowed more than $100,000 of tax credits for eligible contributions made during a taxable year, whether the contributions

are made pursuant to one or more certified project plans. The minimum contribution of a taxpayer that would qualify for the

credit during a tax year is $500 and the maximum contribution is $200,000. The total amount of tax credits allowed pursuant

to project plans certified by the West Virginia Development Office during any fiscal year is limited to $2,500,000. This credit is

available for taxable years ending after June 30, 1996. This credit expires July 1, 2016.

ELIGIBLE TAXPAYERS

Eligible taxpayers may claim the credit as provided in W. Va. Code § 11-13J-5. An eligible taxpayer is any person or entity

subject to the West Virginia Business Franchise Tax, Corporation Net Income Tax, or Personal Income Tax that makes an

eligible contribution to a qualified charitable organization pursuant to the terms of a Certified Neighborhood Investment

Program Project Plan.

AMOUNT OF CREDIT

The amount of the allowed credit is 50 percent of the taxpayer's eligible contribution to a qualified charitable organization that

has received approval from the Neighborhood Investment Advisory Board and has been certified by the West Virginia

Development Office. The allowed credit must be taken within a 5-year period, beginning with the tax year in which the taxpayer

irrevocably transfers its eligible contribution to the project. The maximum amount of credit allowed per year for any one

taxpayer is one hundred thousand dollars ($100,000), and the total maximum credit which may be certified in any fiscal year

is two million five hundred thousand dollars ($2,500,000) in the aggregate.

If the eligible taxpayer is a partnership or corporation, credit is applied first against Business Franchise Tax to reduce the taxpayer's

annual Business Franchise Tax liability by up to 50 percent (determined after application of the credits allowed under W. Va. Code

§ 11-23-17, but before application of any other credits). Any remaining credit amount is applied as follows:

1. If the eligible taxpayer is a C corporation, the remaining credit may be applied to reduce its

Corporation Net Income Tax liability by up to 50 percent (determined before application of other

allowable tax credits).

2. If the eligible taxpayer is an electing small business corporation (S corporation) or a partnership for

federal income tax purposes, any unused credit after application to the Business Franchise Tax, may

be applied by the shareholder of the S corporation, the partners in the partnership, or members of the

limited liability company treated as a partnership, to reduce their liability for West Virginia Personal

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Form Wv/nipa-2 - West Virginia Neighborhood Investment Program Credit Schedule

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