Schedule Eotc-1 - Economic Opportunity Tax Credit (Page 3 of 9) in pdf

c o n o m i c

p p o r t u n i t y

r E d i t

Information & Instructions

**The following information, instructions, and forms are not a substitute for tax laws and regulations**

the number of new jobs created. A business creating at least

eneral

nformatIon

280 new jobs is allowed a credit equal to 25% of its qualified

investment, and a business creating at least 520 new jobs

The purpose of the Economic Opportunity Tax Credit is to

can claim 30% of its qualified investment. For projects

promote net employment growth within West Virginia. In

having qualified investment of $20 million or more that

return for net employment growth (e.g., twenty (20) new

are constructed using construction labor and mechanics

jobs) through capital investment, the State provides a tax

numbering 75 or more employees or equivalent employees,

credit to offset the additional taxes directly attributable to

who are paid an average wage of at least prevailing wage;

the qualified investment and new jobs.

the new jobs percentage for the 20 to 520 employee range is

The Economic Opportunity Tax Credit is available to

increased by 5 percentage points.

qualified businesses that make a qualified investment (on

or after January 1, 2003) in a new or expanded business in

If New West Virginia Jobs Total at

The Applicable

West Virginia and, as a result of this investment, create at

least:

Percentage is:

least twenty (20) new jobs. Qualified business include only those

30%

520

engaged in the activities of manufacturing, information processing,

warehousing, non-retail goods distribution, qualified research

25%

280

and development, the relocation of a corporate headquarters, or

20%

destination-oriented recreation and tourism.

10%

15 Corporate headquarters relocation only

Application for Credit Required

10%

10 Small business credit (see below)

Taxpayers must complete an Application for West Virginia

Jobs Calculation

Economic Opportunity Tax Credit (Form WV/EOTC-A) with

the Tax Commissioner and receive written acknowledgment

The new jobs percentage is based on the number of new

of such application prior to claiming the credit. The

jobs created in this State that are directly attributable to

application must be filed annually no later than the due date

the qualified investment in a new or expanded business

of the taxpayer’s annual income tax return determined with

facility. The number of new jobs created by the investment

regard to any extension of time for filling such returns. Form

is determined by the net increase in employment by the

WV/EOTC-A must be filed on a timely basis before claiming

business (or controlled group of businesses) in West Virginia

tax credits. Failure to do so will result in forfeiture of 50% of

over a base year level. The base year is the 12-month

the annual credit allowance utilized until the application is

period immediately preceding the placement of qualified

filed.

investment into service or use. The hours of qualified

part-time employees may be aggregated to determine the

Certified Projects

number of equivalent full-time employees for the purpose

of ascertaining the number of new jobs created.

The Economic Opportunity Tax Credit may be claimed for a

project certified by the Tax Commissioner. A project eligible

A “New Job” is one that did not exist in the business of the

for certification is one in which:

taxpayer in this State prior to the investment in the new or

expanded business facility. This position must be filled by

The qualified investment creates at least twenty (20) new

a new employee. The number of new jobs is the net of new

jobs but such investment is placed in service or use over a

jobs created less any jobs lost in any part or segment of the

period of three (3) successive tax years rather than a period

employer’s business in West Virginia over the same time

of 365 days or less. The investment is eligible for project

period.

certification only if made in accordance with a written

business facility development plan, and the investment

A “New Employee” is a West Virginia domiciled resident

placed in service or use during the first year would not have

hired to fill one of the new jobs on a permanent basis.

been made without the expectation of making the qualified

Temporary or seasonal employment does not qualify as a

investment placed in service or use during the next two (2)

new job. Persons hired on a temporary or seasonal basis do

succeeding tax years.

not qualify as new employees.

A qualified business creating at least twenty (20) new jobs

For all Economic Opportunity Tax Credit applications,

within three (3) tax years is allowed a credit equal to 20%

except small business, an estimation of the expected number

of its qualified investment. This percentage increases with

of new jobs is made in the first taxable year for which the

West Virginia Economic Opportunity Tax Credit  Schedule EOTC-1  Page 1

Schedule Eotc-1 - Economic Opportunity Tax Credit Page 3

Related Articles

Related forms

Related Categories