West Virginia Credit for Coal Loading Facilities

Credit for Coal Loading Facilities
Schedule C
Rev. 08-12

Schedule

C

Credit for Coal Loading Facilities

West Virginia
State Tax
Department

Tax Period
Beginning
Date

End
Date

Business
Name

ID
Number

Computation

of

Eligible Investment
Column 1
Net Cost

Column 2
Percentage

Column 3
Allowable Cost Investment

1. Coal loading facilities property with useful life of 4 or more
but less than 6 years............................................................... $

33 ⅓%

$

2. Coal loading facilities property with useful life of 6 or more
but less than 8 years............................................................... $

66 ⅔%

$

3. Coal loading facilities property with useful life of 8 years or more $

100%

$

4. Total eligible coal loading facilities investment........................................................................................................ $
5. Total potential coal loading facilities credit (10% of line 4)..................................................................................... $
6. Available annual coal loading facilities credit (10% of line 5)................................................................................. $
7. Available annual coal loading facilities credit from prior years
Reference period
(# of years prior to
current tax period)

Tax Period Ending

Original Available Annual Credit

Adjustments

9
8
7
6
5
4
3
2
1
Total
8. Total available annual coal loading facilities credit (line 6 plus line 7).................................................................... $
9. a) Total severance tax............................................................................................................................................ $
b) Amount of other credits claimed......................................................................................................................... $
c) Net limit (9a – 9b).............................................................................................................................................. $
d) Credit limit (50% of 9a)....................................................................................................................................... $
e) Coal loading facilities credit offset....................................................................................................................... $

(Continued on the next page)
Schedule C
Page 1

Net Available Annual
Credit

10. a) Total business and occupation tax.................................................................................................................... $
b) Amount of other credits claimed........................................................................................................................ $
c) Net limit (10a – 10b)......................................................................................................................................... $
d) Credit limit (50% of 10a)................................................................................................................................... $
e) Coal loading facilities credit offset..................................................................................................................... $
11. a) Total business franchise tax.............................................................................................................................. $
b) Amount of other credits claimed........................................................................................................................ $
c) Net limit (11a – 11b).......................................................................................................................................... $
d) Credit limit (50% of 11a)................................................................................................................................... $
e) Coal loading facilities credit offset..................................................................................................................... $
12. Total credit claimed (lines 9e + 10e + 11e)........................................................................................................... $

Note that the sum of credit claimed on lines 9e, 10e, and 11e may not exceed 50% of the sum of
the liabilities reported on lines 9a, 10a, and 11a. This 50% limit also applies to the sum of all tax
credit claimed under §11-13E of the West Virginia Code. Unused annual credit is forfeited.

Schedule C
Page 2

PURPOSE

DATE
ACQUIRED

DATE
PLACED IN
SERVICE

Enter amount on
page 1 Column 1,
Line 1, Schedule C

4 or more but less
than 6

Enter amount on
Page 1 Column 1,
Line 2, Schedule C

6 or more but less
than 8

Enter amount on
Page 1, Column 1,
Line 3, Schedule C

8 or more

NET COST/USEFUL LIFE (YEARS)

ITEMIZATION OF PROPERTY PURCHASED FOR COAL LOADING FACILITIES

DESCRIPTION AND
LOCATION OF ITEM (LIST
EACH ITEM SEPARATELY)

TOTAL
Business Name__________________________________ Tax Period ________________
Identification Number________________________________

Schedule

C

Coal Loading Facilities Credit
Information & Instructions

T

HE purpose of the Coal Loading Facilities Credit is
to encourage the establishment of new or revitalized
coal loading facilities in West Virginia.

NOTE: Coal Loading Facilities Credit no longer may be
applied to reduce Sales and Use Taxes for taxable purchases
of tangible personal property or services made for taxable
years ending after June 30, 1993.

Eligible Taxpayers
Eligibility for the Coal Loading Facilities Credit is limited
to:
1.	 those who construct and operate a new coal loading
facility, and
2.	 those who revitalize and operate existing coal loading
facilities.

Type of Coal Loading Facility Eligible
for Tax Credit:
For purposes of determining eligibility for the tax credit, a
coal facility includes any building or structure specifically
designed and solely used to transfer coal from a coal processing
or preparation facility, or from a coal storage facility, or both,
or from any means of transportation, to any means of rail or
barge transportation used to move coal. The credit applies
only when the transfer of coal is to any means of rail or barge
transportation and is not applicable when the transfer is to
any other form of transportation. The cost of land, if directly
associated and solely used for the loading of coal, is eligible
for the credit. A coal loading facility also includes any device
or combination of machinery and equipment that is directly
associated with and solely used for the loading of coal. Such
items as the coal loading tipple, conveyors, coal storage
facilities, weighing equipment and rail trackage, if they are
directly associated with and solely used for the loading of
coal, are included within the definition.
Eligible investment in a coal loading facility does not include
the cost of any coal processing, preparation, blending or
sizing equipment facility. Such equipment and facilities are
not included even though the equipment may physically be
part of the coal loading facility and necessary or essential to
the loading of commercially usable or marketable coal.

t

West Virginia

Amount of Credit
The tax credit shall be limited to 10% (1% for each often
consecutive years) of the total qualified investment in a
coal loading facility. The amount of credit employed in any
given year shall not reduce the taxpayer’s liability for each
of the following by more than 50%: Severance Tax (§1113A), Business Franchise Tax (§11-23), and Business and
Occupation (§11-13). Any unused credit for a particular year
is forfeited.

Property Purchased for a Coal Loading
Facility
Property purchased for a coal loading facility is defined
as real property and improvements thereto, and tangible
personal property, but only if such real or personal property
is constructed or purchased for use as a component part of
a new or expanded coal loading facility, or the revitalization
of an existing coal facility located in West Virginia. Tangible
personal property is included within the above definition
only if depreciation or amortization, in lieu of depreciation,
is allowable in determining federal personal or corporation
net income tax.
The property to be included must have a useful life of four
years or more. Useful life is defined as the period over which
the asset may reasonably be expected to be useful in the
taxpayer’s business.
The leasing of property for a term of ten years or longer, if
used as a component part of a coal loading facility, shall be
considered property purchased for a coal loading facility.

Ineligible Property
Property purchased for a coal loading facility shall not
include the following:
1.	 Property which qualifies or was qualified for the
Business Investment and Jobs Expansion Credit (WV
Code 11-13C-1 et seq.) or the Industrial Expansion
and Revitalization and Research Development Credits
(WV Code 11-13D-1 et seq.);

2.	 Repair costs, including materials used in making the
repair, unless under Generally Accepted Accounting
Principles the cost of the repair must be capitalized

Page 1

and not expensed;

3.	 Motor vehicles licensed by the Department of Motor
Vehicles;

be eligible for the credit, the property must have been placed
into use in West Virginia during the taxable year.

4.	 Airplanes;

5.	 Off-premise transportation equipment;

6.	 Property located or primarily used outside of West
Virginia;

Net Cost
Net Cost is the net monetary consideration provided for
acquisition of title and/or ownership to the subject property.
Net cost does not include the value of any property given
in trade or exchange for the property purchased for a coal
loading facility. If property is damaged or destroyed by
fire, flood, storm, or other casualty or is stolen, the cost
of replacement shall not include any insurance proceeds
received in compensation.
In the case of leased property, net cost shall be the rent
reserved for the primary term of the lease, not to exceed 20
years. Lease renewals, subleases or assignments shall not be
considered.
In the case of self-constructed property, the cost thereof shall
be the amount properly charged to the capital account for
purposes of depreciation.

Property Purchased For Multiple
Business Uses

t

West Virginia

66 ⅔%

8 years or more

100%

Credit Recapture
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.
For example, Company C invested $12 million in a coal
loading facility with a designated useful life of over 8 years
in 2000. The credit for Company C was calculated to equal
$1,200,000 or $120,000 per year for 10 years. However,
Company C closed its facility in 2005, so the facility’s actual
useful life in West Virginia is reduced to only five years.
The corresponding credit is reduced according to the above
formula from $1,200,000 to $400,000 or $40,000 per year.
A reconciliation statement for 2000 through 2005 reflecting
an over utilization of credit must then be submitted with
payment of additional tax, interest and penalties owed.

Instructions for Computation of Coal
Loading Facilities Credit
o lu

Enter the net costs of the property in Column 1 on
the appropriate line determined by the life of the
property.

1

o lu m
2 & 3 Multiply the net costs in Column 1 by the applicable
n

To determine the amount of investment eligible for the
Coal Loading Facility Credit, the net cost of each property
purchased is multiplied by the applicable percent shown
below according to the useful life of the property. In order to

6 years or more but less than 8 years

n

Eligible Investment

33 ⅓%

m

If property is purchased for multiple business uses including
use as a component part of a new expanded or revitalized
coal loading facility together with some other business or
occupation not qualifying (for example, coal processing), the
cost of the property must be apportioned. The apportionment
of multiple-use properties must be thoroughly supported
and explained by separate documents submitted with the
application.

4 years or more but less than 6 years

If a taxpayer purchases for $25,000 after April 1, 1983, a
conveyor belt for use in its coal loading facility which has
a useful life of 6 years, the eligible investment is equal
to $16,666.66. The eligible investment is calculated by
multiplying the cost of the equipment, ($25,000), times the
applicable percentage according to the useful life, (66 ⅔%) to
arrive at $16,666.66. The credit is equal to 10% of the eligible
investment ($1,666.67). This credit must be claimed over a
period of 10 years at a rate of 10% ($166.67) per year.

C

8.	 Property purchased prior to April 1, 1983.

The applicable
percentage is:

Example:

C

7.	 Property acquired incident to the purchase of the stock
or assets of an industrial taxpayer, which has been
previously designated property purchased for Business
Investment and Jobs Expansion Credit, Industrial
Expansion or Revitalization Credit, or Research and
Development Credit.

If useful life is:

percentages in Column 2. Enter the results in
Column 3.
L in e

4

Add the figures in Column 2 and enter on Line 4.
This is the taxpayer’s eligible investment.

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Computation of Potential Current
Annual Credit
L in e

5 To determine the taxpayer’s total potential current
annual credit, which can be taken over a period of ten
years, multiply the total eligible investment (Line 4) by 10%.
Enter the result on Line 5.

Computation of Current Annual Credit:
L in e

To determine the taxpayer’s annual credit earned
during the taxable year, multiply the total potential
credit on Line 5 by 10%. Enter the result on Line 6.

6

Credit From Previous Years:
L in e

Enter any annual Coal Loading Facilities Credit
from prior year(s). For eligible investments for
multiple year(s) a worksheet must be provided showing the
computation.

7

Computation of Total Annual Credit:
L in e

To determine the total amount of credit available in
the current taxable year, add the credit earned during
the current year shown on Line 6 to the amounts available
from previous years shown on Line 7. Enter the total on
Line 8.

8

L in e

9a

L in e

Enter your total amount of pre-credit Severance Tax
liability.

Enter sum of Business Investment and Jobs Expansion
Credit (Super Credit), Industrial Expansion and
Revitalization Credit, Research and Development Project
Credit and Residential Housing Development Project
Credit, if any, applied against your Severance Tax liability.

9b

L in e

9c

L in e

9d

Subtract amount of Line 9b from the amount on
Line 9a.

L in e

Enter your total amount of pre-credit Business and

10a Occupation Tax liability.
L in e

Enter sum of Business Investment and Jobs Expansion

10b Credit (Super Credit), Industrial Expansion and

Revitalization Credit, Research and Development Project
Credit and Residential Housing Development Project
Credit, if any, applied against your Business and Occupation
Tax liability.
L in e

10c Subtract amount on Line 10b from the amount on
L in e

10d
L in e

Line 10a.

Enter 50% of Line 10a.
Enter the lesser of the amount shown on Line 8,

10e or the amount shown on Line 10c, or the amount

shown on Line 10d. This represents the maximum Coal
Loading Facilities Credit available against your Business and
Occupation Tax liability.
L in e

11a Enter your total amount of Business Franchise Tax

remaining after deduction for the Subsidiary Credit,
Business and Occupation Credit and Bank Shares Credit.
L in e

11b Enter sum of Business Investment and Jobs Expansion

Credit (Super Credit), Industrial Expansion and
Revitalization Credit, Research and Development Project
Credit and Residential Housing Development Project
Credit, if any, applied against your Business Franchise Tax
liability.
L in e

11c Subtract amount on Line 11b from the amount on
L in e

Line 11a.

11d Enter 50% of Line 11a.
L in e

Enter 50% of Line 9a.

11e Enter the lesser of the amount shown on Line 8, or

L in e

Enter the lesser of the amount shown on Line 8, or
the amount shown on Line 9c, or the amount shown
on Line 9d. This represents the maximum Coal Loading
Facilities Credit available against your Severance Tax liability.

9e

t

West Virginia

the amount shown on Line 11c, or the amount shown
on Line 11d. This represents the maximum Coal Loading
Facilities Credit available against your Business Franchise
Tax liability.
L in e

12

Enter the sum of credit claimed on line 9e, 10e,
and 11e.

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