SB 722 — Creating WV Short Line Railroad Modernization Act

§11-13NN-5.

Requirements for credit.

(a) In order for an eligible taxpayer to claim a qualified short line railroad maintenance expenditure tax credit defined in this article, the eligible taxpayer shall submit a certificate of eligibility to the Tax Commissioner.

If the eligible taxpayer is a disregarded entity, then the certificate should be submitted in the name of the owner of the disregarded entity.

The certificate may be submitted during the calendar year in which the qualified expenditures were incurred but no later than May 1 of the calendar year following the year in which the qualified expenditures were incurred.

The certificate shall include the number of miles of railroad track owned, leased, or operated in this state and a description of the amount of qualified railroad expenditures completed.

The certificate shall be made on a form and in the manner prescribed by the Tax Commissioner and considered in the order received.

(b) Eligible taxpayers intending to earn a tax credit for any qualified new rail infrastructure expenditures as defined in this article, shall submit an application to the Tax Commissioner.

Applications will be processed in the order received, and approvals will be granted on a first- come, first-served basis.

(c) If the department determines that the eligible taxpayer meets the requirements to earn a tax credit under the West Virginia Short Line Railroad Modernization Act, the Tax Commissioner may issue a tax credit certificate to the eligible taxpayer.

The certificate shall be numbered for identification and declare its date of issuance and the amount of the tax credit earned under this article.

§11-13NN-6.

Uses of credit;

unused credit;

carry forward;

transferred credit.

(a)The tax credit allowed under this article may be used against the taxes imposed by §11-21-1 et seq., §11-23-1 et seq., and §11-24-1 et seq.

of this code, in no particular order.

Enr CS for SB 722 (b) To the extent not used, the tax credit authorized under this article may be carried over, in order, to each of the five subsequent taxable years.

(c) The tax credits authorized under this article may be transferred or sold to a taxpayer by written agreement at any time during the taxable year in which the credit is earned by the eligible taxpayer or in the subsequent years as allowed under this section.

The transferor and transferee must jointly file a transfer form with the Tax Commissioner within 30 days of the transfer.

The transfer form must contain the name, address, and taxpayer identification number of the parties to the assignment, the tax year the eligible taxpayer incurred the qualified expenditures, the amount of credit being transferred, the credit certificate number, and the tax year or years for which the credit may be claimed, and any other information required by the Tax Commissioner.

(d) The Tax Commissioner may not seek recourse against the transferee for any portion of the credit that may be subsequently disqualified.

§11-13NN-7.

Tax credit review and accountability.

Beginning on the first day of the third taxable year after the passage of this article and every two years thereafter, the Tax Commissioner shall submit to the Governor, the President of the Senate, and the Speaker of the House of Delegates a tax credit review and accountability report evaluating the cost effectiveness of the West Virginia Short Line Railroad Modernization Act during the most recent two-year period for which information is available.

The criteria to be evaluated shall include, but not be limited to, for each year of the two-year period:

(1) The number of taxpayers claiming the credit;

(2) The dollar amount of tax credit certificates issued to eligible taxpayers;

(3) The dollar amount of qualified short line railroad maintenance expenditures made by eligible taxpayers;

(4) The dollar amount of qualified new rail infrastructure expenditures made by eligible taxpayers;

and Enr CS for SB 722 (5) The cost of the credit.

§11-13NN-8.

Sunset date.

The provisions of this article shall have no further force or effect after July 1, 2030, unless reenacted by the Legislature.

No entitlement to any tax credit authorized by this article may result from, and no credit is available to any person for, expenditures incurred subsequent to July 1, 2030.

Enr CS for SB 722 The Clerk of the Senate and the Clerk of the House of Delegates hereby certify that the foregoing bill is correctly enrolled.

...............................................................

Clerk of the Senate ...............................................................

Clerk of the House of Delegates Originated in the Senate.

In effect 90 days from passage.

...............................................................

President of the Senate ...............................................................

Speaker of the House of Delegates __________ The within is ................................................

this the...........................................

Day of ..........................................................................................................., 2025.

.............................................................

Governor 7