West Virginia 2022 Regular Session Status: Died

SB 506 — Authorizing manufacturing investment tax credit and property tax adjustment credit against personal income tax

Last action — To Finance

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. Died in session

This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

120 added · 122 removed

Plain-language change summary

The updated version of SB 506 includes a new section that specifies eligible taxpayers can receive a tax credit for their construction-related activities associated with certain business classifications, specifically those identified by certain six-digit codes. Additionally, the credit amount has been clarified, stating it will equal 50% of the qualifying manufacturing investment, rather than the previous five percent referenced. These changes aim to provide more substantial financial incentives for businesses in the relevant sectors to invest in manufacturing and construction, which could help stimulate economic growth in West Virginia.

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NEWS RELEASES HELPFUL LINKS Introduced Version « Senate Bill 506 History OTHER VERSIONS  —  Committee Substitute (1)  |   |  Email Key:
NEWS RELEASES HELPFUL LINKS SB506 SUB1 « Senate Bill 506 History OTHER VERSIONS  —  Introduced Version  |   |  Email Key:
Red = new code to be enacted WEST virginia legislature regular session Introduced Senate Bill 506 By Senators Swope and Sypolt [Introduced January 31, 2022;
Red = new code to be enacted WEST virginia legislature regular session Committee Substitute for Senate Bill 506 By Senators Swope and Sypolt [Originating in the Committee on Energy, Industry, and Mining;
referred to the Committee on the Energy, Industry, and Mining;
reported on February 8, 2022]     A BILL to amend and reenact §11-13S-4 and §11-13Y-5 of the Code of West Virginia, 1931, as amended, all relating to authorizing application of the manufacturing investment tax credit and the manufacturing property tax adjustment credit against personal income tax;
and then to the Committee on Finance] A BILL to amend and reenact §11-13S-4 and §11-13Y-5 of the Code of West Virginia, 1931, as amended, all relating to authorizing application of the manufacturing investment tax credit and the manufacturing property tax adjustment credit against personal income tax;
—  (1) There is allowed to eligible taxpayers and to persons described in subdivision (4), subsection (b) of this section a credit against the taxes imposed by §§ 11-13A-1 et seq., §§11-21-1 et seq.
—  (1) There is allowed to eligible taxpayers and to persons described in subdivision (4), subsection (b) of this section a credit against the taxes imposed by § 11-13A-1 et seq., §11-21-1 et seq., and §11-24-1 et seq.
and §11-24-1 et seq.
Provided, That a tax credit for any eligible taxpayer operating a business activity classified as having a sector identifier, consisting of the six digit code number 211112 such eligible taxpayer must shall comply with the provisions of subsection (e) of this section for all construction related thereto in order to be eligible for any credit under this article.
Provided, That a tax credit for any eligible taxpayer operating a business activity classified as having a sector identifier, consisting of the six-digit code number 211112 such eligible taxpayer must shall comply with the provisions of subsection (e) (d) of this section for all construction related thereto in order to be eligible for any credit under this article.
Application of credit under this article is subject to  §11-24-13a(g) and §11-24-13c(b)(2) of this code.
Application of credit under this article is subject to §11-24-13a(g) and §11-24-13c(b)(2) of this code.
—  The amount of allowable credit under this article is equal to five percent of the qualified manufacturing investment (as determined in §11-13S-5 of this code):
—  The amount of allowable credit under this article is equal to five percent of the qualified manufacturing investment as determined in §11-13S-5 of this code:
Provided, That the amount of allowable credit under this article is equal to 50 percent of the qualified manufacturing investment (as determined in §11-13S-5.
Provided, That the amount of allowable credit under this article is equal to 50 percent of the qualified manufacturing investment as determined in §11-13S-5.
of this code) for any eligible taxpayer operating a business that is or may be classified as having a sector identifier, consisting of the six-digit code number 332992 or 332994, as defined on January 1, 2021.
of this code or any eligible taxpayer operating a business that is or may be classified as having a sector identifier, consisting of the six-digit code number 332992 or 332994, as defined on January 1, 2021.
of this code (determined before application of the credit allowed by §11-12B-3 of this code and before any other allowable credits against tax and before application of the annual exemption allowed by §11-13A-10 of this code).
of this code determined before application of the credit allowed by §11-12B-3 of this code and before any other allowable credits against tax and before application of the annual exemption allowed by §11-13A-10 of this code.
of this code, the total amount of all credits allowable for the taxable year may not reduce the amount of the severance tax, imposed under §11-13A-1 et seq.
of this code, the total amount of all credits allowable for the taxable year may not reduce the amount of the severance tax imposed under §11-13A-1 et seq.
of this code, below 50 percent of the amount which would be imposed for such taxable year (determined before application of the credit allowed by §11-12B-3 of this code and before any other allowable credits against tax and before application of the annual exemption allowed by §11-13A-10 of this code):
of this code below percent of the amount which would be imposed for such taxable year determined before application of the credit allowed by §11-12B-3 of this code and before any other allowable credits against tax and before application of the annual exemption allowed by §11-13A-10 of this code:
—  After application of subdivision (2) of this subsection, any unused credit is next applied to reduce the corporation net income tax imposed under §11-24-1 et seq.
— After application of subdivision (2) of this subsection, any unused credit is next applied to reduce the corporation net income tax imposed under §11-24-1 et seq.
of this code (determined before application of any other allowable credits against tax).
of this code determined before application of any other allowable credits against tax.
of this code, below 50 percent of the amount which would be imposed for the taxable year (determined before application of any other allowable credits against tax):
of this code, below 50 percent of the amount which would be imposed for the taxable year determined before application of any other allowable credits against tax:
of this code, the total amount of all credits allowable for the taxable year may not reduce the amount of the corporation net income tax, imposed under article §11-24-1 et seq.
of this code, the total amount of all credits allowable for the taxable year may not reduce the amount of the corporation net income tax imposed under article §11-24-1 et seq.
of this code, below 40 percent of the amount which would be imposed for the taxable year as determined before application of any other allowable credits against tax;
of this code below 40 percent of the amount which would be imposed for the taxable year as determined before application of any other allowable credits against tax;
—  (A)  If the eligible taxpayer is a limited liability company, small business corporation or a partnership, then any unused credit (after application of subdivisions (2) and (3) of this subsection) is allowed as a credit against the taxes imposed by §11-24-1 et seq.
—  (A)  If the eligible taxpayer is a limited liability company, small business corporation, or a partnership, then any unused credit after application of subdivisions (2) and (3) of this subsection is allowed as a credit against the taxes imposed by §11-24-1 et seq.
(B)  The amount of annual credit allowed will not reduce corporation net income tax, imposed under §11-24-1 et seq.
(B)  The amount of annual credit allowed will not reduce corporation net income tax imposed under §11-24-1 et seq.
of this code, below 50 percent of the amount which would be imposed on the conduit income directly derived from the eligible taxpayer by each owner for such taxable year in the absence of this credit against the taxes (determined before application of any other allowable credits against tax):
of this code, below 50 percent of the amount which would be imposed on the conduit income directly derived from the eligible taxpayer by each owner for such taxable year in the absence of this credit against the taxes determined before application of any other allowable credits against tax:
Provided, That for tax years beginning on and after January 1, 2009, the amount of annual credit allowed will not reduce corporation net income tax, imposed under §11-24-1 et seq.
Provided, That for tax years beginning on and after January 1, 2009, the amount of annual credit allowed will not reduce corporation net income tax imposed under §11-24-1 et seq.
of this code, below 40 percent of the amount which would be imposed on the conduit income directly derived from the eligible taxpayer by each owner for such taxable year in the absence of this credit against the taxes as determined before application of any other allowable credits against tax.
of this code below 40 percent of the amount which would be imposed on the conduit income directly derived from the eligible taxpayer by each owner for such taxable year in the absence of this credit against the taxes as determined before application of any other allowable credits against tax.
of this code, the total amount of all credits allowable for the taxable year will not reduce the corporation net income tax imposed on the conduit income directly derived from the eligible taxpayer by each owner below percent of the amount that would be imposed for such taxable year on the conduit income (determined before application of any other allowable credits against tax):
of this code, the total amount of all credits allowable for the taxable year will not reduce the corporation net income tax imposed on the conduit income directly derived from the eligible taxpayer by each owner below percent of the amount that would be imposed for such taxable year on the conduit income determined before application of any other allowable credits against tax:
(D)  For tax years beginning on and after January 1, 2023, if the eligible taxpayer is a limited liability company, small business corporation or a partnership, then any unused credit (after application of subdivisions (2) and (3) of this subsection) is allowed as a credit against the taxes imposed by §11-21-1 et seq.
(D)  For tax years beginning on and after January 1, 2023, if the eligible taxpayer is a limited liability company, small business corporation, or partnership, then any unused credit after application of subdivisions (2) and (3) of this subsection is allowed as a credit against the taxes imposed by §11-21-1 et seq.
(E)  The amount of annual credit allowed may not reduce personal income tax, imposed under §11-21-1 et seq.
(E)  The amount of annual credit allowed may not reduce personal income tax imposed under §11-21-1 et seq.
of this code, below 40 percent of the amount which would be imposed on the conduit income directly derived from manufacturing activity of the eligible taxpayer by each owner for such taxable year in the absence of this credit against the taxes as determined before application of any other allowable credits against tax.
of this code below 40 percent of the amount which would be imposed on the conduit income directly derived from manufacturing activity of the eligible taxpayer by each owner for such taxable year in the absence of this credit against the taxes as determined before application of any other allowable credits against tax.
(F)  For tax years beginning on and after January 1, 2023, if the eligible taxpayer is a sole proprietorship, then any unused credit (after application of subdivisions (2) and (3) of this subsection) is allowed as a credit against the taxes imposed by §11-21-1 et seq.
(F)  For tax years beginning on and after January 1, 2023, if the eligible taxpayer is a sole proprietorship, then any unused credit after application of subdivisions (2) and (3) of this subsection is allowed as a credit against the taxes imposed by §11-21-1 et seq.
(G)  The amount of annual credit allowed will not reduce personal income tax, imposed under §11-21-1 et seq.
(G)  The amount of annual credit allowed will not reduce personal income tax imposed under §11-21-1 et seq.
of this code, below 40 percent of the amount which would be imposed on the conduit income directly derived from manufacturing activity of the eligible taxpayer for such taxable year in the absence of this credit against the taxes as determined before application of any other allowable credits against tax.
of this code below 40 percent of the amount which would be imposed on the conduit income directly derived from manufacturing activity of the eligible taxpayer for such taxable year in the absence of this credit against the taxes as determined before application of any other allowable credits against tax.
(5) Small business corporations, limited liability companies, partnerships and other unincorporated organizations shall allocate any unused credit after application of subdivisions (2) and (3) of this subsection among their members in the same manner as profits and losses are allocated for the taxable year.
(5) Small business corporations, limited liability companies, partnerships, and other unincorporated organizations shall allocate any unused credit after application of subdivisions (2) and (3) of this subsection among their members in the same manner as profits and losses are allocated for the taxable year.
This application shall be in the form prescribed by the Tax Commissioner and shall provide the number and type of jobs created, if any, by the manufacturing investment, the average wage rates and benefits paid to employees filling the new jobs and any other information the Tax Commissioner may require.
This application shall be in the form prescribed by the Tax Commissioner and shall provide the number and type of jobs created, if any, by the manufacturing investment, the average wage rates and benefits paid to employees filling the new jobs, and any other information the Tax Commissioner may require.
(e)  (1)  Any person or entity undertaking any construction related to any business activity included within North American Industrial Code six-digit code number 211112, the value of which is an amount equal to or greater than $500,000, shall hire at least 75 percent of employees for said construction from the local labor market, to be rounded off, with at least two employees from outside the local labor market permissible for each employer per project, “the local labor market” being defined as every county in West Virginia and any county outside of West Virginia if any portion of that county is within 50 miles of the border of West Virginia.
(e)  (1)  Any person or entity undertaking any construction related to any business activity included within North American Industrial Code six-digit code number 211112, the value of which is an amount equal to or greater than $500,000, shall hire at least 75 percent of the employees for said construction from the local labor market, to be rounded off, with at least two employees from outside the local labor market permissible for each employer per project, “the local labor market” being defined as every county in West Virginia and any county outside of West Virginia if any portion of that county is within 50 miles of the border of West Virginia.
(3)  If, within three business days following the placing of a job order, the division is unable to refer any qualified job applicants to the person or entity engaged in said construction or refers less qualified job applicants than the number requested, then the division shall issue a waiver to the person or entity engaged in said construction stating the unavailability of applicants and shall permit the person or entity engaged in said construction to fill any positions covered by the waiver from outside the local labor market.
(3)  If, within three business days following the placing of a job order, the division is unable to refer any qualified job applicants to the person or entity engaged in said construction or refers less qualified job applicants than the number requested, the division shall issue a waiver to the person or entity engaged in said construction stating the unavailability of applicants and shall permit the person or entity engaged in said construction to fill any positions covered by the waiver from outside the local labor market.
of this code, on the conduit income thereof directly attributable to manufacturing activity in this State, or the tax imposed under §11-21-1 et seq.
of this code, on the conduit income thereof directly attributable to manufacturing activity in this state, or the tax imposed under §11-21-1 et seq.
of this code, on income directly attributable to manufacturing activity in this State:
of this code, on income directly attributable to manufacturing activity in this state:
of this code.
of this code.  Application of credit under this article is subject to the provisions of §11-24-13a(g) and §11-24-13c(b)(2) of this code.
 Application of credit under this article is  subject to the provisions of §11-24-13a(g) and §11-24-13c(b)(2) of this code.
(c) Application of Credit, pass-through entities, personal income tax, proprietorships.
(c) Application of credit, pass-through entities, personal income tax, and proprietorships.
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—  (1)  For corporation net income tax payers -- For tax years beginning on and after January 1, 2023, if the eligible taxpayer is a limited liability company, small business corporation or a partnership, then the credit authorized under this article shall be taken against the tax liabilities imposed by §11-24-1 et seq.
—  (1)  For corporation net income tax payers – For tax years beginning on and after January 1, 2023, if the eligible taxpayer is a limited liability company, small business corporation, or a partnership, then the credit authorized under this article shall be taken against the tax liabilities imposed by §11-24-1 et seq.
(2) For personal income tax payers – (A) For tax years beginning on and after January 1, 2023, if the eligible taxpayer is a limited liability company, small business corporation or a partnership, then the credit authorized under this article shall be taken against the tax liabilities imposed by §11-21-1 et seq.
(2) For personal income tax payers – (A) For tax years beginning on and after January 1, 2023, if the eligible taxpayer is a limited liability company, small business corporation, or a partnership, then the credit authorized under this article shall be taken against the tax liabilities imposed by §11-21-1 et seq.
of this code on income of the eligible taxpayer directly derived from manufacturing activity in this State.
of this code on income of the eligible taxpayer directly derived from manufacturing activity in this state.
—  Any credit remaining after application of the credit against the tax liabilities specified in subsections (a) and (b) of this section for the current taxable year is forfeited and shall may not carry back to any prior taxable year and shall may not carry forward to any subsequent taxable year.
—  Any credit remaining after application of the credit against the tax liabilities specified in subsections (a) and (b) of this section for the current taxable year is forfeited and shall may not carry back to any prior taxable year, and shall may not carry forward to any subsequent taxable year.
of this code and after application of all other applicable tax credits allowed for the taxable year against the taxes imposed by §11-21-1 et seq.
of this code, and after application of all other applicable tax credits allowed for the taxable year against the taxes imposed by §11-21-1 et seq.
  NOTE:
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The purpose of this bill is to authorize application of the manufacturing investment tax credit and the manufacturing property tax adjustment credit against personal income tax.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
Bill Status  |  Bill Tracking  |  Legacy WV Code  |  Bulletin Board  |  District Maps  |  Senate Roster  |  House Roster  |  Live  |  Blog  |  Jobs  |  Links  |  Home This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.
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Action History

  1. To Finance

  2. Committee substitute reported, but first to Finance

  3. To Energy, Industry, and Mining

  4. Introduced in Senate

  5. To Energy, Industry, and Mining then Finance

  6. Filed for introduction

Sponsors

  • Sypolt · Cosponsor
  • Swope · Primary

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 150 not signed on

Sponsors (1)

  • Swope

Co-sponsors (1)

  • Sypolt

Not signed on (150)

150 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 506?
SB 506 is sponsored by Sypolt and Swope.
What is the current status of SB 506?
This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 506?
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