West Virginia Code 11-24-10a – Nonrefundable credit for matching contribution to employee’s Jumpstart Savings Account
(a) A nonrefundable credit against the tax imposed by the provisions of this article is allowed for a matching contribution to a Jumpstart Savings Account made in the taxable year if the account owner is an employee of the taxpayer and a West Virginia resident, subject to the requirements of § 18-30A-1 et seq. of this code and the following:
Terms Used In West Virginia Code 11-24-10a
- Commissioner: means the State Tax Commissioner. See West Virginia Code 11-22-1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- corporation: includes a joint-stock company and any association or other organization which is taxable as a corporation under the federal income tax law. See West Virginia Code 11-24-3a
- Internal Revenue Code: means the Internal Revenue Code as defined in section three of this article, as amended and in effect for the taxable year and without regard to application of federal treaties unless expressly made applicable to states of the United States. See West Virginia Code 11-24-3a
- Limited liability company: means a limited liability company organized under the laws of this state, the United States or by any other state, territory or the District of Columbia. See West Virginia Code 11-22-1
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: means a general or limited partnership or organization of any kind treated as a partnership for tax purposes under the laws of this state. See West Virginia Code 11-24-3a
- state: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof. See West Virginia Code 11-24-3a
- tax: includes , within its meaning, interest and additions to tax, unless the intention to give it a more limited meaning is disclosed by the context. See West Virginia Code 11-24-3a
- tax year: means the taxable year for which the taxable income of the taxpayer is computed under the federal income tax law. See West Virginia Code 11-24-3a
- taxpayer: means any person subject to the tax imposed by this article. See West Virginia Code 11-24-3a
- this code: means the Code of West Virginia, 1931, as amended. See West Virginia Code 11-24-3a
- United States: means the United States of America and includes all of the states of the United States, the District of Columbia and United States territories and possessions. See West Virginia Code 11-24-3a
(1) The employer must directly contribute an amount to a Jumpstart Savings Account that is equal to a contribution made by the employee to such account in the same taxable year.
(2) The credit allowed by this section may not exceed $5,000 per employee per taxable year.
(3) The employer may not claim the credit against more than one type of tax for a single contribution to a Jumpstart Savings Account.
(4) The employer may not claim both the credit and a decreasing modification authorized by § 11-21-12m of this code for an amount contributed to an employee’s account.
(b) In order to qualify for the credit provided by this section, an employer must submit any forms or other information, as required by the West Virginia Jumpstart Savings Board or the State Treasurer, or the Tax Commissioner, upon making the contribution.
(c) Conduit Entities Corporation Net Income Tax. —
(1) If the employer directly contributing an amount to a Jumpstart Savings Account is an electing small business corporation (as defined in Section 1361 of the United States Internal Revenue Code of 1986, as amended), a partnership, or a limited liability company that is treated as a partnership for federal income tax purposes, the credit authorized pursuant to this section is allowed as a credit against the taxes imposed by this article on the flow through income of S corporation shareholders, partners, owners, and limited liability company members derived from such electing small business corporation, partnership, or limited liability company attributable to business or other activity.
(2) Electing small business corporations, limited liability companies, partnerships, and other unincorporated organizations shall allocate the credit allowed by this article among its corporate partners, owners, shareholders, or members in the same manner as profits and losses are allocated for the taxable year.
(3) No credit is allowed under this section against any employer withholding taxes imposed by this article.
(4) The credit allowed under this section must be used in the tax year in which the contribution is made. The credit may not be carried back to a prior tax year nor carried forward to a subsequent tax year. Any unused amount of the credit is forfeited.
(d) The amendments to this section adopted during the regular session of the Legislature, 2023, are effective January 1, 2023.