West Virginia Code 11-13EE-3 – Rebate allowable
(a) Rebate allowable. — Eligible taxpayers shall be allowed a rebate against a portion of severance taxes imposed by § 11-13A-3 of this code on the privilege of engaging in the production of coal in an amount not to exceed 35 percent of the eligible taxpayer‘s qualified investment in tangible personal property purchased or leased for business expansion, subject to the limitations in subsections (b) and (c).
Terms Used In West Virginia Code 11-13EE-3
- Base period: means the five-year period directly preceding the year the qualifying capital investment in new machinery and equipment was placed into service. See West Virginia Code 11-13EE-2
- Capital investment in new machinery and equipment: means :
(A) Tangible personal property in the form of machinery and equipment that is purchased on or after the effective date of this article and placed in service for direct use in the production of coal, when the original or first use of the machinery or equipment in this state commences on or after the effective date of this article. See West Virginia Code 11-13EE-2
- Coal production: means the privilege of severing, extracting, reducing to possession and producing coal for sale, profit or commercial use and includes the processing of coal at a coal preparation and processing plant. See West Virginia Code 11-13EE-2
- eligible taxpayer: includes all members of the rebate applicant's controlled or affiliated group. See West Virginia Code 11-13EE-2
- mine: includes :
(A) A "surface mine" or "surface mining operation" which means:
(i) Activities conducted on the surface of lands for the removal of coal, or, subject to the requirements of §. See West Virginia Code 11-13EE-2
- Production of coal: means privilege of severing, extracting, reducing to possession and producing coal for sale, profit or commercial use and includes the processing of coal at the coal preparation and processing plant. See West Virginia Code 11-13EE-2
- Qualified investment: means capital investment in new machinery and equipment directly used in the production of coal in this state that is depreciable, or amortizable, for federal income tax purposes and has a useful life for federal income tax purposes of five or more years when it is placed in service or use in this state. See West Virginia Code 11-13EE-2
- Rebate: means the amount of rebate allowable under §. See West Virginia Code 11-13EE-2
- State: when applied to a part of the United States and not restricted by the context, includes the District of Columbia and the several territories, and the words "United States" also include the said district and territories. See West Virginia Code 2-2-10
- State portion of severance taxes paid: means the portion of severance taxes due under §. See West Virginia Code 11-13EE-2
- Tax year: means the calendar year following the July first assessment day or, in the case of a public service business assessed pursuant to article six of this chapter, the calendar year beginning on the January first assessment day. See West Virginia Code 11-5-3
- Taxpayer: means any person exercising the privilege of severing, extracting, reducing to possession and producing coal for sale, profit or commercial use coal, which privilege is taxable under §. See West Virginia Code 11-13EE-2
- This code: means the Code of West Virginia, 1931, as amended. See West Virginia Code 11-13EE-2
- This state: means the State of West Virginia. See West Virginia Code 11-13EE-2
(b) Maximum rebate limited to 80 percent of increase above base period severance taxes. — The maximum amount of rebate allowable for any given tax year is limited to an amount not to exceed 80 percent of the increase in the state portion of severance taxes paid for coal mined at the specific mine where the qualified investment is made when compared to the state portion of severance taxes paid for coal mined at the specific mine where the qualified investment is made during the base period.
(c) Additional Limiting Factors. —
(1) In order to qualify for any severance tax rebate under this article in a given rebate year, the eligible taxpayer must meet the following requirements:
(A) No credit shall be allowed unless the aggregate total coal production tonnage from all mines operated by the eligible taxpayer in this state during the year for which the rebate or rebate carryover is claimed has increased above the annual average aggregate total coal production tonnage from all mines operated by the eligible taxpayer during the base period; and
(B) No credit shall be allowed unless the aggregate total number of full-time employees, along with full-time equivalent employees, at all mines operated by the eligible taxpayer in this state during the rebate year has increased above the annual average aggregate total number of full-time employees, along with full-time equivalent employees, at all mines operated by the eligible taxpayer in this state during the base period.
(2) The increase in the state portion of severance taxes paid against which the rebate may be taken is further limited by a factor, the numerator of which is the increase in coal production, measured in tons produced, at all mines operated by the taxpayer, the denominator of which is the increase in coal production, measured in tons produced, at the specific mine where investment is made: Provided, That in no instance may the factor exceed one. The increase in coal production is determined by subtracting the base period coal production, measured in tons produced, from the coal production, measured in tons produced, during the tax year for which the rebate is claimed.
(d) When the eligible taxpayer has produced coal in this state for two years before making the capital investment in new machinery and equipment, but was not in business during a full five-year base period, then the eligible taxpayer’s base severance tax amount shall be the amount of state severance tax due under § 11-13A-3 of this code on coal produced in this state during the most recent tax year prior to making the investment.
(e) No rebate shall be allowed under this article when credit is claimed under any other article of this chapter for capital investment in the new machinery and equipment. No credit shall be allowed under any other article of this chapter when rebate is allowed under this article for the capital investment in new machinery and equipment.