West Virginia Code 11-13U-5 – Restrictions on investment
(a) No qualified investment may be made in a qualified research and development company that is the alter ego of the eligible taxpayer.
Terms Used In West Virginia Code 11-13U-5
- Alter ego: means a qualified research and development company where one or more of the following criteria are satisfied in relation to the eligible taxpayer:
(A) The ownership of the business is "substantially related" to the ownership of the eligible taxpayer. See West Virginia Code 11-13U-3
- Eligible taxpayer: means a person that has received certification from the economic development authority that a portion of the annual available high growth business investment credit has been allocated to it, that is subject to the tax imposed by either article twenty-three, article twenty-four or article twenty-one of this chapter, and that has made a qualified investment in a qualified research and development credit company. See West Virginia Code 11-13U-3
- Qualified investment: means an equity financing of a West Virginia qualified strategic research and development company. See West Virginia Code 11-13U-3
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
(b) The eligible taxpayer shall maintain its qualified investment for a minimum period of five years: Provided, That an eligible taxpayer receiving repayment or return of a qualified investment (exclusive of interest, dividends or other earnings on the investment) shall within three calendar months from the date of repayment or return reinvest the repaid or returned amount of the initial investment in another qualified research and development company for a period of time at least equal to the remainder of the initial five-year term.