West Virginia Application for West Virginia Business Investment and Jobs Expansion Tax Credit

Application for West Virginia Business Investment and Jobs Expansion Tax Credit
Internetcs_a.PDF
Form WV/BCS-A
(Rev. 12/99)

Application for West Virginia Business Investment And Jobs Expansion Tax Credit
for Investments Placed in Service On Or
After January 1, 1990
Instructions and Form
The Business Investment and Jobs Expansion Credit Law (Super Credit) was amended by the 1990 West Virginia Legislature to
promote fiscal stability and to increase emphasis upon job creation as a requirement for receipt of tax credits.
The amendments eliminate use of the Super Credit against the Severance Tax for most investments placed in service or use on or
after March 10, 1990. Exceptions to this rule exist for investments covered by transition rules relating to binding contracts executed prior
to the date of passage of the legislation and for integrated projects in which at least $10 million of investment was made prior to March
10, 1990. A 1993 law restricts new credits (i.e., investment placed in service after April 9, 1993) to the activities of manufacturing;
information processing; warehousing; goods distribution; destination-oriented recreation and tourism.
The amendments exclude from the definition of property purchased or leased for business expansion: natural resources in place,
property whose cost cannot be quantified at the time such property is placed in service or use, uncapitalized costs, and property
previously subject to alternative tax credits.
The new law provides that the required net increase in the taxpayer’s employment in the State be determined and certified for a
controlled group instead of an individual subsidiary. Jobs saved by the making of investment in an ongoing business operation do not
count toward the new employee requirement unless the Tax Commissioner determines that the taxpayer is insolvent or bankrupt or that
the taxpayer’s business facility was destroyed by fire, flood or act of God.
The term “full-time employment” is redefined to mean employment for at least one hundred forty (140) hours per month, as opposed
to one hundred twenty (120) hours per month under prior law.
The term “small business” is redefined to mean a business or controlled group of foreign and domestic affiliated businesses with
annual gross receipts of not more than $5.5 million and annual payroll of not more than $1.7 million. The median salary requirement
remains at $12,000. These amounts are subject to annual inflation adjustment. The criteria for 2000 includes payroll ($2,212,000), gross
receipts ($7,373,450) and median compensation ($16,200).
Finally, the law specifies that no credit may be allowed or applied for any qualified investment property placed in service after January
1, 1990, until the person asserting a claim for the credit makes written application to the Tax Commissioner and receives written
acknowledgement of such application from the Tax Commissioner. Failure to timely apply for credit will result in forfeiture of 50% of
the annual credit allowance otherwise available under this requirement. Form BCS-A is designed to be a general application form for
taxpayers wishing to claim credit based upon investments placed into use or service on or after January 1, 1990. The timely filing of
this application is a condition precedent to claiming tax credits. This application must be filed annually no later than the due date of
the taxpayer’s West Virginia income tax return determined without considering any extension of time for filing such returns.

Instructions To Form BCS-A
1a. Application Status:
Status Place a check mark in the block next to the applicable status of your investment. (Check only one
block.)
(a) In most cases qualified investment property is placed in service or use by one taxpayer over a single tax year.
(b) However, a multiple year project certification enables the taxpayer to place investment into service over a period of up
to three consecutive tax years.
(c) A multiple party project certification enables a group of taxpayers to benefit from collective investment in new jobs and
property.
(d) Finally, a group of taxpayers may receive both a multiple year and a multiple party project certification.
1b. Type of Credit: Place a check mark in the block indicating the type of credit application sought.
2a.

Investment: Enter the year investment is placed into service or use in the first column, the total dollar amount of

investment placed into service or use in the second column and the dollar amount of qualified investment placed into service
or use in the third column. Qualified Investment is determined according to the following useful life (straight line depreciation):
Useful Life
But Less Than

At Least
0
4
6
8 or more years

Percent Qualified

4 years
6 years
8 years

0
33-1/3
66-2/3
100

2b. Enter the location(s) of the qualified investment property (i.e. Main Street, Weston, or 12 miles north of Pipestem at the
intersection of State Route 3 and State Route 20).
2c. Provide a general discription of the qualified investment property in the space provided (i. e. $100,000 to be invested in
buildings, $500,000 to be invested in land, etc.)
3.

Employment:
a)

Enter your total West Virginia payroll and number of jobs attributed to that payroll for the twelve month period ending
on the day prior to the day of the first placement of qualified investment subject to Super Credit into service or use.

b)

Enter your total West Virginia payroll and number of jobs attributed to that payroll for the tax year to which this
application relates.

c)

Enter your total projected West Virginia payroll and number of jobs attributed to that payroll for the third tax year after
the qualified investment is first placed into service or use. For example, if you first plan to place investment into service
or use in 1996 then, you would use your projected 1998 payroll to complete this question. (Note that the information
in 3(b) and 3(c) should be identical if this year is your third tax year.)

d)

Enter the applicable jobs percentage you wish to claim (i.e. 50% if you expect to create at least 50 new jobs) and your
projected number of new jobs created up through the third tax year corresponding to the increase in payroll from 3(a)

New Jobs Percentage Table
Number of New Jobs
(Corporate HQ relocation only)
15 to 49
50 to 279
280 to 519
520 to 759
760 to 999
1,000 or more

New Jobs Percentage
10%
50%
60%
70%
80%
90%

to 3(c). Note that if your business is a member of a controlled group, then the controlled group's West Virginia
employment must show a net increase equal to or greater than the necessary minimum new jobs threshold claimed by
the member for credit to be available.
Small business taxpayers: 30% for the first ten jobs plus 1/2 of 1% for each job over 10.
4.

Taxpayers have an option of beginning their utilization of tax credits with the year investment is first placed into service
or with the succeeding taxable year. Check yes or no depending upon which option you choose. Once an election is made
either way it becomes irrevocable.

5.

(For Multiple Party Projects Only) Enter the names and federal identification numbers for all other project participants along
with their tax year end dates (i.e. 12/31) and their credit allocation percentages and/or allocated credit amounts (i.e. 15% or
$100,000).

Within a reasonable time after receipt of this Application the Tax Commissioner or his designee will acknowledge, in writing, receipt
of this application and authorize the Applicant to begin claiming Super Credit benefits. Such acknowledgement and authorization will
not bar or otherwise prevent the Tax Commissioner from auditing or examining Applicant’s books and records for compliance with the
Super Tax Credit law and regulations.
This application must be signed by an officer of the company (primary project participant) to be valid.

Form WV/BCS-A
(Rev. 12/99)

Application For Business Investment and Jobs Expansion Credit For Investments Placed In Service On Or
After January 1, 1990
Name

Identification Number

Business Name

Tax Year
,

to

,

Street Address

City, Town or Post Office

State

Zip Code

Application is hereby made to the Tax Commissioner of West Virginia for allowance of Business Investment and Jobs Expansion
Tax Credit ("Super Tax Credit") with respect to qualified investment property placed in service or use during Applicant's tax year ending
, and the new jobs created by the Applicant that are directly attributable to the qualified investment property
and that are filled by persons who are domiciled in this State.
If this Application is being made on behalf of a multiparty project, Applicant represents to the Tax Commissioner that the Applicant
is authorized by each of the other participants in the project to make this Application.
1a. Application Status (Check Only One):

Must receive
Certification From
Tax Commissioner

One Year Investment, One Taxpayer

a)

Multiple Year Investment, One Taxpayer

b)

Single Year Investment, Multiple Party Taxpayers

c)

Attach List of Parties

Multiple Year Investment, Multiple Party Taxpayers

d)

Attach List of Parties

1b. Type of Credit:

Regular Super Credit

2a. Investment:

Headquarters Relocation

Total Investment

Small Business

Qualified Investment

(1)

Year

Amount $

$

(2)

Year

Amount $

$

(3)

Year

Amount $

$

Multiple Year
Projects Only

2b. Location(s) of investment in West Virginia
2c. General Description of Qualified Investment:
Narrative:

3.

Employment:

Payroll

a)

Total WV Payroll and Number of Jobs Prior to Investment:

b)

Total WV Payroll and Number of Jobs This Tax Year:

c)

Projected WV Payroll and Number of Jobs After 3 Years:

d)

Jobs Percentage and Projected Number of New Jobs:

Jobs

%

4.

Does the taxpayer elect to begin the (10) year credit period with the next succeeding taxable year?

5.

(Multiple Party Projects Only)
Additional Participant
Name(s)

Federal Identification
Number

Tax Year
Ending

Yes

No

Credit Allocation
Percentage/Amount

1.

2.

3.

4.

5.

6.

Under penalties of perjury, I declare that I have examined this application (including accompanying schedules
and statements) and to the best of my knowledge and belief it is true, and complete.

(Signature of Taxpayer)

(Name of Taxpayer-Type or Print)

(Person to Contact Concerning this Return)

(Signature of Preparer other than Taxpayer)

(Title)

(Date)

(Telephone Number)

(Address)

(Date)

Please return the completed application to the West Virginia State Tax Department, P.O. Box 902, Charleston, WV 253230902. If you have any questions or need further information regarding this application, telephone (304) 558-3333 or toll
free to 1-800-WVA-TAXS (1-800-982-8297).