West Virginia Application for West Virginia Economic Opportunity Tax Credit

Application for West Virginia Economic Opportunity Tax Credit
Form EOTCA
EOTC-A
Rev. 03/2020

Application for West Virginia Economic Opportunity Tax Credit
For Investments Placed in Service On or After January 1, 2003

BUSINESS NAME
TAX YEAR

IDENTIFICATION NUMBER

MM

DD

TO

YYYY

NAME OF TAXPAYER

MM

DD

YYYY

PERSON TO CONTACT CONCERNING THIS RETURN

ADDRESS

PREPARER’S EIN

CITY, STATE, ZIP

DAYTIME TELEPHONE

Application is hereby made to the Tax Commissioner of West Virginia for allowance of Economic Opportunity Tax Credit with
respect to qualified investment property placed in service or use during Applicant’s tax year, as indicated above, and the
new jobs created by the Applicant that are directly attributable to the qualified investment property that are filled by persons
who are domiciled in this State.
1. a.

Application Status (Check only one):
a.)  One Year Investment, One Taxpayer
b.)  Multiple Year Investment, One Taxpayer – Must receive Certification from Tax Commissioner

Note: An application must be filed for each year in which investment for purpose of the Economic Opportunity Tax
Credit is placed in service or use. Additionally, the application must be approved by the State Tax Commissioner
before any credit may be claimed.
b.

2. a.

Regular Credit
Headquarters Relocation
Specified High Technology Manufacturer

Type of Credit:

Investment

Total Investment

Year-1 (ending)
MM

DD

YYYY

MM

DD

YYYY

MM

DD

YYYY

Year-2 (ending)
Year-3 (ending)

Qualified Investment

Amount $

$

Amount $

$

Amount $

$

b.

Location(s) of Investment in West Virginia

c.

General Description of Qualified Investment:

EOTC-1
Rev. 03/2020

Small Business
Other (See instructions)

___________________________________________________

Page 1 of 2

BUSINESS NAME

IDENTIFICATION NUMBER

Payroll and Employment:

Payroll

3. a. Total WV Payroll and Number of Jobs Prior to investment

Jobs

$

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 (see Instructions) and Projected Number
of Jobs After 3 Years:

%

e. Median Compensation of New Jobs (Credit Type: High
Technology Manufacturers):

$

f. Minimum Compensation of New Jobs (Credit Type: Other)

$

Benefits

Percentage of Employees
Covered

4. a. Health
b. Retirement

Average Annual Cost per
Employee

%

$

%

$

%

$

%

$

%

$

%

$

%

$

Number of New Jobs
with the Benefit

c. Other Benefits (Provide Description and Quantities)

Business Activity in West Virginia:
5 a. North American Industry Classification System Code (NAICS):

_________________________

b. Narrative Description of Business Activity in West Virginia:
_________________________________________________________________________________________________
_________________________________________________________________________________________________
6. Does the Taxpayer elect to begin the ten (10) year credit period with the next succeeding taxable year? yes

no

Under penalties of perjury, I declare that I have examined this credit claim form (including accompanying schedules and
statements) and to the best of my knowledge 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)

DO NOT attach the Application to your annual return. Return the completed application to the West Virginia State Tax
Department, P.O. Box 1202, Charleston, WV 25324-1202. 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).
EOTC-1
Rev. 03/2020

Page 2 of 2

Form EOTC-A
APPLICATION FOR WEST VIRGINIA ECONOMIC OPPORTUNITY TAX CREDIT
FOR INVESTMENTS PLACED IN SERVICE ON OR AFTER JANUARY 1, 2003
Information & Instructions
The Economic Opportunity Tax Credit is available to qualified
businesses that make a qualified investment (on or after January
1, 2003) in a new or expanded business in West Virginia and, as
a result of this investment, create new jobs. Qualified businesses
include only those engaged in the activities of manufacturing,
informationprocessing,warehousing,non-retailgoodsdistribution,
qualified research and development, the relocation of a corporate
headquarters, or destination-oriented recreation and tourism.The
minimum job creation requirements are as follows:
TYPE OF CREDIT

For purposes of the Specified High Technology Manufacturer
component of the Economic Opportunity Tax Credit, the term
“high technology manufacturing business” means and is limited
to only those businesses engaging in a manufacturing activity
properly classified as having one or more of the following six-digit
North American Industry Classification System code numbers:
NORTH AMERICAN INDUSTRY
CLASSIFICATION SYSTEM CODE

MANUFACTURING ACTIVITY

334111
334112

Computer & Peripheral Equipment
Electronic Computers
Computer Storage Devices

334411
334414

Electronic Components
Electron Tubes
Electronic Capacitors

334413
333295

Semiconductors
Semiconductor & Related Devices
Semiconductor Machinery

MINIMUM NEW JOBS

Regular

20

Corporate Headquarters Relocation

15

Small Business

10

Specified High Technology Manufacturer

20 (Additional criteria)

Other Qualified Business

1 (Additional criteria)

The 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 defined to mean employment
for at least one hundred forty (140) hours per month. The term
“small business” is defined to mean a business or controlled group
of foreign and domestic affiliated businesses with annual gross
receipts of not more than an inflation adjusted ceiling amount.
Through tax year 2009, the inflation adjusted gross receipts ceiling
by tax year is as follows.
CRITERIA
YEAR

GROSS RECEIPTS

2003

$7,000,000

2004

$7,159,600

2005

$7,324,500

2006

$7,552,050

2007

$7,846,850

2008

$8,026,350

2009

$8,368,450

Current information on the gross receipts ceiling can be found on
the Administrative Notice section at http://tax.wv.gov.

Additionally, the Economic Opportunity Tax Credit Law requires
that the median compensation of the new jobs attributable to
the qualified investment must exceed an inflation adjusted value.
Through tax year 2009, the inflation median compensation value
by tax year is as follows:
CRITERIA
YEAR

MEDIAN
COMPENSATION

2008

$45,000

2009

$46,900

Current information on the median compensation value can be
found on the Administrative Notice section at http://tax.wv.gov.
Taxpayers engaged in manufacturing, information processing,
warehousing, non-retail goods distribution, qualified research
and development, the relocation of a corporate headquarters, or
destination-oriented recreation and tourism who do not satisfy
the new jobs creation requirements for the Regular, Corporate
Headquarters Relocation, Small Business, or Specified High
Technology Manufacturers components of the Economic
Opportunity Tax Credit may qualify for a credit equal to $3,000
per new job annually for five years. Each new job must satisfy the
following requirements:
1.
2.

Pay at least $32,000 annually;
Provide health insurance and may offer benefits including
child care, retirement or other benefits; and
3. Is a full-time permanent position.
Finally, the law specifies that no credit may be allowed or applied for

any qualified investment property placed in service until the person
asserting a claim for the credit makes written application to the
Tax Commissioner and receives written acknowledgement or 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 EOTC-A is
designed to be a general application form for taxpayers wishing to
claim the credit based upon investments placed into use or service
on or after January 1, 2003. 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 including any legally granted extension
of time for filing such returns.

APPLICATION STATUS
Place a check mark in the box next to the applicable status
of your investment (Check only ONE box).
(a.) In some cases qualified investment property is placed in
service or use by the 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.
Note: An Application must be filed for each year in which
investment for purposes of the Economic Opportunity Tax Credit
is placed in service or use. Additionally, the application must be
approved by the State Tax Commissioner before any credit may
be claimed.
Type of credit: Place a check mark in the box indicating
the type of credit application sought (Check on ONE
box).

invested in buildings, $500,000 to be invested in land, etc.).

PAYROLL & EMPLOYMENT
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 Economic Opportunity Tax Credit
into service or use.
Enter your total West Virginia payroll and number of jobs
attributed to that payroll for the tax year to which this
application relates.
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 2003 then, you would use your projected 2005 payroll to
complete this question (Note: The information in 3b and 3c should
be identical if this year is your third tax year).
Enter the applicable jobs percentage you wish to claim
(i.e. 20% if you expect to create at least 20 new jobs) and
your projected number of new jobs created up through the third tax
year corresponding to the increase in payroll from 3a to 3c. Note:
The new jobs percentage is applicable to the Regular, Corporate
Headquarters Relocation, and Small Business components of the
Economic Opportunity Tax Credit.
NEW JOBS PERCENTAGE TABLE
Number of New Jobs

New Jobs Percentage

10 to 19 (small business only)

10%

INVESTMENT

15 to 19 (Corporate HQ relocation only)

10%

20 to 279

20%

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):

280 to 519

25%

520 or more

30%

Useful Life
At Least

But Less Than

Percent Qualified

0 years

4 years

0%

4 years

6 years

33
%

6 years

8 years

66
%

8 or more years

100%

Enter the physical location(s) of the qualified investment
property (e.g., Main Street, Weston, or 12 miles north of
Pipestem at the Intersection of State Route 3 and State Route 20).
Provide a general description of the qualified investment
property in the space provided (i.e. $100,000 to be

Note that is your business is a member of a controlled group, then
the controlled group’s West Virginia employment must show a
new increase equal to or greater than the necessary minimum new
jobs threshold claimed by the member for credit to be available.
For projects having qualified investment of $20 million or more
that are constructed using construction labor and mechanics
numbering 75 or more employees or equivalent employees, who
are paid an average wage of at least prevailing wage; the new jobs
percentage for the 20 or 520 employee range is increased by 5
percentage points.
If the box for “Specified High Technology Manufacturer”
in 1b (i.e., Type of Credit) was checked, enter the value of
the median compensation for the new jobs created.
If the box for “Other” in 1b (i.e., Type of Credit) was
checked, enter the value of the minimum compensation
for the new jobs created.

BENEFITS
Health insurance – Enter the percentage of your
employees covered, the average annual cost per employee
(i.e., benefit costs divided by number of covered employees), and
the number of new jobs with health insurance.
Retirement – Enter the percentage of your employees
covered, the average annual cost per employee (i.e. benefit
costs divided by number of covered employees), and the number of
new jobs with company-provided retirement benefits.
Other Benefits – List other company benefits provided
(e.g., child care) and enter the percentage of your
employees covered, the average annual cost per employee (i.e.,
benefit costs divided by number of covered employees), and the
number of new jobs with the benefit.

BUSINESS ACTIVITY IN WEST VIRGINIA
Enter your North American Industry Classification
Code (NAICS) that most closely describes your business
activity in West Virginia.

Describe the business expansion activity in West
Virginia that is associated with your new investment
(e.g., construction of a reconstituted wood product manufacturing
plant).

CREDIT PERIOD
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.
Within a reasonable time after receipt of the Application the
State Tax Commissioner or his designee will acknowledge, in
writing, receipt, of this application and authorize the Applicant to
begin claiming Economic Opportunity Tax 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 Economic
Opportunity Tax Credit law and regulations.
This application must be signed by an officer of the company to
be valid. ❦