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SUBJECT: ECONOMIC
A "small business "may claim the
small business economic opportunity tax credit allowed under W. Va. Code
§11-13Q-10, when its qualified investment in real or tangible personal property
purchased or leased for business expansion in this State, as defined in W. Va. Code
§ 11-13Q-8, results in the small business hiring new employees to fill at least
ten (10)"new jobs "it
created in this State as a direct result of the purchase or lease of the qualified
investment property.
The
law defined "small business, "as
of June 11, 2002, to mean a business which has annual gross receipts of not more
than seven million dollars (including the gross receipts of all affiliates in
its controlled group) W. Va. Code § 11‑13Q‑10(a) (emphasis added).
"New job" was defined by incorporating
the definition of "new job"
in subsection 11-13Q-3(b)(15).
Dollar
amounts stated in the definition of "small
business" are subject to annual adjustment for inflation. This adjustment
is determined by the State Tax Commissioner using the methodology described in
subsection 11-13Q-10(a)(1) through (4). The 2007 inflation adjustment factor is
based on the percentage by which the Consumer Price Index (CPI) for calendar
year2006 exceeds the CPI for calendar year 2002. For this purpose, the CPI for
any calendar year is the average of the Federal Consumer Price Index for the twelve-month
period ending on August 31st of such calendar year (W. Va.Code § 11-13Q-10(a)(2)).The CPI for 2006 is
200.292 and the CPI for 2002 is 178.675. Based on these figures, the inflation
adjustment factor, for purposes of W. Va. Code §11-13Q-10, for tax years
beginning in calendar year 2007, is 1.1209850287.
Accordingly
for tax years beginning during calendar year 2007:
"Small business "means a business which
has annual gross receipts of not more than seven million, eight hundred forty-six
thousand, eight hundred fifty dollars ($7,846,850). The inflation increase is
rounded to the lowest multiple of fifty dollars under W.
Va.Code § 11-13Q-10(a)(4).
A summary
of the applicable inflation-adjusted Small Business Credit criteria, by calendar
year, for tax years beginning in such years, follows:
CRITERIA
YEAR
GROSS RECEIPTS
2003
$7,000,000
2004
$7,159,600
2005 $7,324,500
2006 $7,552,050
2007 $7,846,850
Notice
of this determination will be filed in the
Issued: December 19, 2006 Christopher G.
Morris
Deputy Tax Commissioner
State
Tax Department Operator
on duty 8:30 am – 5:00 p.m.
Taxpayer
Services Division Monday
through Friday
TDD Service/Hearing Impaired
1-800-282-9822