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                             Schedule EOTC-1
                     INSTRUCTIONS FOR ECONOMIC OPPORTUNITY TAX CREDIT
                                  (FOR PERIODS AFTER JANUARY 1, 2015)

                  GENERAL INFORMATION                               investment of $20 million or more that are constructed 
The purpose of the Economic Opportunity Tax Credit is to            using construction labor and mechanics numbering 75 or 
promote net employment growth within West Virginia. In              more employees or equivalent employees, who are paid 
return for net employment growth (e.g., ten (10) new jobs)          an average wage of at least prevailing wage; the new jobs 
through capital investment, the State provides a tax credit to      percentage for the 20 to 520 employee range is increased 
o ﬀset the additional taxes directly attributable to the quali ﬁ ed by 5 percentage points.
investment and new jobs.                                            If New West Virginia Jobs Total at         The Applicable 
                                                                    least:                                     Percentage is:
The Economic Opportunity Tax Credit is available to quali ﬁ      ed 
businesses that make a quali ﬁ ed investment (on or after January15 Corporate headquarters relocation only                     10%
1, 2003) in a new or expanded business in West Virginia and, 
                                                                    10                                                         10%
as a result of this investment, create at least ten (10) new jobs. 
Quali ﬁed business include only those engaged in the activities     20                                                         20%
of manufacturing, information processing, warehousing, non-         280                                                        25%
retail goods distribution, quali ﬁed research and development, 
the relocation of a corporate headquarters, or destination-         520                                                        30%
oriented recreation and tourism.
                                                                                       JOBS CALCULATION
        APPLICATION FOR CREDIT REQUIRED
                                                                    The new jobs percentage is based on the number of new 
Taxpayers must complete an Application for West Virginia 
                                                                    jobs created in this State that are directly attributable to 
Economic Opportunity Tax Credit (Form WV/EOTC-A) with 
                                                                    the quali ﬁed investment in a new or expanded business 
the Tax Commissioner and receive written acknowledgment 
                                                                    facility. The number of new jobs created by the investment 
of such application prior to claiming the credit. An annual 
                                                                    is determined by the net increase in employment by the 
application must be submitted no later than the due date of 
                                                                    business (or controlled group of businesses) in West Virginia 
the WV tax return or extension due date in order to assert 
                                                                    over a base year level.  The base year is the 12-month 
the credit. Schedule EOTC-A must be  ﬁ   led on a timely basis 
                                                                    period immediately preceding the placement of quali  edﬁ
before claiming tax credits. 
                                                                    investment into service or use.  The hours of quali  ed    ﬁ
                  CERTIFIED PROJECTS                                part-time employees may be aggregated to determine the 
                                                                    number of equivalent full-time employees for the purpose of 
The Economic Opportunity Tax Credit may be claimed for a            ascertaining the number of new jobs created.
project certi ﬁed by the Tax Commissioner. A project eligible 
for certi ﬁcation is one in which:                                  A “New Job” is one that did not exist in the business of the 
                                                                    taxpayer in this State prior to the investment in the new or 
The quali ﬁed investment creates at least ten (10) new jobs         expanded business facility. This position must be  ﬁlled by a 
but such investment is placed in service or use over a period       new employee. The number of new jobs is the net of new 
of three (3) successive tax years rather than a period of 365       jobs created less any jobs lost in any part or segment of 
days or less. The investment is eligible for project certi ﬁ cation the employer’s business in West Virginia over the same time 
only if made in accordance with a written business facility         period.
development plan, and the investment placed in service or 
use during the  ﬁrst year would not have been made without          A “New Employee” is a West Virginia domiciled resident 
the expectation of making the quali ﬁed investment placed in        hired to  ﬁll one of the new jobs on a permanent basis. 
service or use during the next two (2) succeeding tax years.        Temporary or seasonal employment does not qualify as a 
                                                                    new job. Persons hired on a temporary or seasonal basis do 
A quali ﬁed business creating at least ten (10) new jobs            not qualify as new employees.
within three (3) tax years is allowed a credit equal to 10% 
of its quali ﬁed investment. This percentage increases with         For all Economic Opportunity  Tax Credit applications, an 
the number of new jobs created. A business creating at least        estimation of the expected number of new jobs is made in the 
20 new jobs is allowed a credit equal to 20% of its quali ﬁed       ﬁ rst taxable year for which the credit is claimed. In the third tax 
investment, a business creating at least 280 new jobs is            year the actual number of new jobs created must be certi ﬁ  ed 
allowed a credit equal to 25% of its quali  ed ﬁ investment,        by the business. Adjustments must be made for the new jobs 
and a business creating at least 520 new jobs can claim             percentage if the number of new jobs certi ﬁ ed varies from the 
30% of its quali ﬁed investment. For projects having quali ﬁed      number of new jobs estimated. The allowable credit is then 

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redetermined for prior and future years. Once certi ﬁed, if the expanded business facility located in this State. The amount
number of new jobs declines in any tax year, resulting in a of the quali ﬁed investment is determined by the cost, or
decreased new jobs percentage, the credit is redetermined. other basis, and the useful life of the property.
However, if the number of new jobs subsequently increases Critical elements in the determination of quali ﬁ ed investment
to the former threshold, the credit will be reinstated. property for purposes of this credit are how, and from whom,
A job is attributable to the quali ﬁed investment if: the property is acquired; the acquisition date; date and term
1. The employee’s service is performed or his base of of a lease; transfer date; date placed in service or use in this
operations is at the new or expanded facility; and State; as well as the useful life of the property.
2. The position did not exist prior to the making of the For the Economic Opportunity Tax Credit, qualifying investment
investment in the new or expanded facility; and, property acquired and placed in service or use in this State on
3. The position exists only because of the investment in or after January 1, 2003 may be counted toward the credit.
the new or expanded facility. Quali ﬁed Investment Property May Include:
Calculation of Full-Time Equivalent Employees 1. Real property and improvements thereto, having a
The hours of quali ﬁed part-time employees are aggregated useful life of four (4) or more years placed in service or
to determine the number of equivalent full-time employees use in West Virginia on or after January 1, 2003.
for the purpose of determining the applicable new jobs 2. Real property and improvements thereto, or tangible
percentage. However, they may not be aggregated for the personal property acquired by written lease with a
purpose of determining when a job is attributable to the primary term of ten (10) or more years placed in service
quali ﬁed investment. or use in West Virginia on or after January 1, 2003.
Part-time employment quali ﬁes if the employee works at 3. Depreciable or amortizable tangible personal property
least twenty (20) hours per week for at least six (6) months placed in service or use in West Virginia on or after
or 520 hours per year (26 weeks @ 20 hours per week). Full- January 1, 2003 with a useful life of four (4) or more
time employment is 140 hours per month or 1,680 hours per years at the time the property is placed in service or use
year (140 hours times 12 months). The following example in this State.
illustrates a calculation of full-time equivalent employees:
4. Tangible personal property acquired by written lease
Quali ﬁed Employees Full-Time Net Full-Time having a primary term of four (4) or more years that was
Equivalent Equivalent commenced and executed on or after January 1, 2003.
200 @ < 520 hrs 1,680 Do not Qualify* 5. Tangible personal property owned or leased, used at a
50 @ 750 hrs 1,680** = 22.32 business location outside this State which is moved into
20 @ 1,500 hrs 1,680** = 17.86 this State on or after January 1, 2003. If owned, property
must be depreciable or amortizable and have a useful
6 @ 1,700 hrs 1,680*** = 6.00 life of four (4) or more years remaining at the time the
4 @ 2,080 hrs 1,680*** = 4.00 property is placed in service or use in this State. If leased,
Total Net Full-time Equivalent Employees = 50.18 the primary term of the lease remaining at the time the
* Must work for at least 6 months at 20 or more hours per week to qualify property is placed in service or use in West Virginia must
** These employees work at least 20 hours per week for at least 6 months be four (4) or more years.
during the year
*** Hours beyond 1,680 may not be counted as additional employees. Quali ﬁed Investment Property May Not Include:
Required Employment Records 1. Property owned or leased, for which another tax credit
The taxpayer must maintain records to establish the (e.g. for Manufacturing Investment Tax Credit, Industrial
following: Expansion and Revitalization; or Research and
Development Projects) has been taken by the taxpayer,
1. Total full-time equivalent employment in place during
seller, lessor, or other transferor.
the year immediately preceding the year quali ed ﬁ
investment was ﬁrst placed into service or use. 2. Repair costs, unless capitalized for federal income tax
2. Total full-time equivalent employment in place during purposes.
each year of the project. 3. Airplanes.
Such records must be retained for a period of three (3) years
4. Property primarily used outside this State.
after the last year for which the credit is claimed.
5. Property acquired incidental to the purchase of the stock
QUALIFIED INVESTMENT PROPERTY or assets of the seller. This restriction can be waived by
Quali ﬁed investment property is property constructed, the Tax Commissioner.
purchased, leased or transferred into West Virginia and 6. Natural resources in place.
placed in service or use, as a component of a new or
7. Property purchased or leased, the cost of which cannot

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be quanti ﬁed when such property is placed in service. include rent for any year subsequent to the expiration
8. Property not directly attributable to the quali ed ﬁ of the book life of the property, determined by use of the
investment activity (e.g. recreational boat, vehicle for straight line method of depreciation.
personal use). 7. For qualifying property purchased for multiple use the
cost must be pro-rated.
Date Placed In Service or Use
8. For self-constructed property the cost is the amount
Property is considered to be placed in service or use in the properly charged to the capital account for depreciation
earlier of: in accordance with federal income tax law.
1. The taxable year in which, under the taxpayer’s 9. The cost of property transferred into this State is
depreciation practice, the period for depreciation for determined based on remaining useful life of the
such property begins; or property at the time it is placed in service or use in this
2. The taxable year in which the property is placed in a State. The cost is the original cost of the property to the
condition of state or readiness and availability for a taxpayer less straight line depreciation allowable for tax
speci ﬁcally assigned function. years, or portions of tax years, the property was used
outside West Virginia.
Required Records
10. For leased tangible personal property transferred into
For each item of quali edﬁproperty, the taxpayer must this State, the cost is based on the period remaining in
maintain records to establish the following: the primary term of the lease after the property is brought
1. Its identity. into this State for use in a new or expanded business.
2. Its actual or reasonably determined cost. The cost is the rent reserved for the remaining period of
3. The month and taxable year in which it was placed in the primary lease term, not to exceed twenty (20) years
service or use. or the remaining useful life, whichever is less.
4. Its straight line depreciation. 11. For leased property placed into service for which the
5. The amount of credit taken. cost is not quanti ﬁable at the outset of the lease, only
6. The date it was disposed of or otherwise ceased to be the quanti ﬁable portion, if any, may be aggregated as a
quali ﬁed property. quali ﬁed investment.
Such records must be retained for a period of three (3) years 12. The cost of relocating corporate headquarters is the
after the last year for which the credit is claimed. expenses incurred and paid by the corporation to
unrelated third parties and which have been certi ﬁed by
Cost or Other Basis the Tax Commissioner to have been both reasonable
1. The cost of purchased property may not include the and necessary to e ﬀ ectuate the move.
value of property given in trade or exchange for the
property purchased. Corporate Headquarters Relocation
2. The cost of replacement property may not include The Corporate Headquarters Relocation Credit is allowable
any insurance proceeds received in compensation for for corporate headquarters placed in service or use in
property damaged or destroyed by ﬁre, ﬂood, storm or West Virginia on or after January 1, 2003. An out-of-state
other casualty or is stolen. corporation relocating its headquarters to West Virginia
is allowed a tax credit if it employs at lease fteen ﬁ(15)
3. The cost of real property with a written primary lease domiciled West Virginia residents on a full-time basis at its
term of ten (10) or more years is 100% of the rent new location.
reserved for the primary term of the lease, not to exceed
twenty (20) years. The adjusted quali ﬁed investment is the same as the quali ﬁ ed
investment determined for the Economic Opportunity Tax
4. The cost of tangible personal property with a written Credit, plus the cost of reasonable and necessary expenses
primary lease term of at least four (4) years but less than incurred to relocate the corporate headquarters.
six (6) years is one-third (1/3) of the rent reserved for the
primary term of the lease. The amount of the credit is determined by multiplying the
adjusted quali ﬁed investment by 10 percent (10%). However,
5. For tangible personal property with a written primary if at least twenty (20) jobs are attributable to the relocation or a
lease term of at least six (6) years but less than eight (8) combination of other quali ﬁ ed investment and the relocation,
years, the cost is two-thirds (2/3) of the rent reserved for the regular Economic Opportunity Tax Credit percentages
the primary term of the lease. beginning at twenty percent (20%) may be used.
6. For tangible personal property with a written lease
term of eight (8) or more years, the cost is 100% of the CALCULATION OF
rent reserved for the primary term of the lease, not to ECONOMIC OPPORTUNITY TAX CREDIT
exceed twenty (20) years. The rent reserved may not The credit is determined by multiplying the amount of the

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taxpayer’s quali ﬁed investment by the taxpayer’s new jobs is forfeited. Any Credit claimed during the ﬁrst three (3)
percentage and is generally applied over a ten (10) year years must be paid back (recaptured) with interest and a
period (at 1/10th per year) beginning in the taxable year in ten (10%) percent penalty.
which the quali ﬁed investment is placed in service or use, 2. Failure to maintain the minimum number of new jobs
or, at the taxpayer’s option, in the next succeeding tax year. in any year subsequent to the initial three-year (3)
For example, a Credit of $200,000 attributable to $1 million period (i.e. years four (4) through ten (10)): The credit is
of quali ﬁed investment made in 2013 is applied at a rate of forfeited for any year in question, but may be reinstated
$20,000 per year for the 2013-2022 period, or alternatively, for any remaining year in which the minimum number
at a rate of $20,000 per year for the 2014-2023 period. is attained, thus enabling the taxpayer to utilize the full
This calculation of quali edﬁ investment is determined by annual credit allowance for that taxable year.
multiplying the net cost of eligible property by its applicable 3. Failure to maintain the number of jobs necessary to
useful life percentage based on the projected actual economic attain a jobs percentage in the 25% to 30% category:
useful life of the asset. The following percentages apply: The credit for year (s) a ectedﬀ must be redetermined
The Applicable to re ﬂect the jobs percentage attributable to the actual
If Useful Life is: Percentage is: employment increase.
Less than 4 years 0 % 4. Credit attributable to property that ceases to be used
4 years or more but less than 6 years 33 ⅓% in this State prior to the end of its categorized useful
6 years or more but less than 8 years 66 ⅔% life must be recalculated for all tax years according to
actual useful life. If the recalculation of credit according
8 years or more 100 % to actual useful life results in an overutilization in a
For example, if a Taxpayer purchases a machine for $25,000, previous year, then a reconciliation statement must be
for use in a new industrial facility, which has a useful life of ﬁ led with the payment of any additional tax and interest
six (6) years, the quali ﬁed investment is equal to $16,666.66. due. Credit attributable to property with a useful life of
The $25,000 investment is multiplied by the applicable less than four (4) years is forfeited for all years.
useful life percentage of 66 2/3% to arrive at $16,666.66 in
quali ﬁed investment. EXAMPLE
The credit can o setﬀ a portion of the tax attributable to Company A creates 50 new jobs and invests $10 million in
quali ﬁed investment for the Business and Occupation Tax, equipment with a designated useful life of eight (8) years
Corporation Net Income Tax, and Personal Income Tax, in in 2013. The credit for Company A is calculated to equal
the order stated. $2,000,000 or $200,000 per year for ten (10) years. However,
Company A moves this equipment to New York in 2018;
The Economic Opportunity Tax Credit is generally available therefore the equipment’s actual useful life in West Virginia
for investment placed into service or use over a period of is reduced to only ﬁve (5) years. The corresponding credit
365 days, beginning on the date when property purchased is reduced according to the above formula from $2,000,000
or leased for business expansion is ﬁrst placed into service to $666,667 or $66,667 per year for ten (10) years. A
or use. Provisions are available for multiple year projects as reconciliation statement for tax years 2013 through 2018
long as project certi ﬁcation has been obtained from the Tax re ﬂecting an overutilization of credit must be led ﬁwith
Commissioner. payment of any additional tax, interest, and penalties owed.

REDETERMINATION, FORFEITURE, AND Redetermination is not Required:
RECAPTURE OF CREDIT
1. For a mere change in the form of conducting business.
If during any taxable year, property used as a quali ed ﬁ However, the property must be retained in a business
investment for any of these credits is disposed of prior to in this State and the taxpayer must retain a controlling
the end of its useful life or ceases to be used in an eligible interest in the successor business .
business, the unused portion of the credit attributable
to that investment is forfeited for the taxable year and all 2. If the forfeiture occurs because property is stolen, or
ensuing years. Forfeiture also applies if the taxpayer ceases damaged by ﬁre, ﬂ ood, storm, or other casualty.
operation of a business facility for which credit was allowed 3. If the business is transferred or sold to a successor
before expiration of the useful life of the quali ﬁed investment business in this State. According to laws governing the
property. The failure to create or maintain the necessary credit, any available credit allowed for is subsequent tax
number of new jobs for credit entitlement also results in years.
credit forfeiture.
The Tax Credit Application Computation is designed to
Redetermination, Forfeiture, and Recapture of Credit accommodate all or any part of these tax credits. Contained
within the schedule and instructions is more detailed
1. Failure to create the minimum number of new jobs within information regarding the Economic Opportunity Tax Credits.
the required two to three year period: The entire credit

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      INSTRUCTIONS FOR SCHEDULE EOTC-1                                   the 2013, 2014 and 2015 tax years. This Taxpayer 
Complete business identi ﬁcation section, including business             elects to begin claiming each tax credit in the year 
name, address, tax year, federal identi ﬁcation number and               investment was  ﬁ rst placed into service. Therefore, 
North American Industry Classi ﬁ cation System (NAICS) code.             the Taxpayer has a pro-rated $1 million per year 
                                                                         tax credit for the 2013-2022 period, a prorated $0.5 
Line 1 Investment Years:  The investment window for                      million per year tax credit for the 2014-2023 period, 
       the Economic Opportunity Tax Credit is normally                   and a pro-rated $0.2 million per year tax credit for 
       one full year. However, the investment window                     the 2015-2024 period. An Economic Opportunity 
       for projects with a multiple year certi  cation ﬁ is              Tax Credit is available to this Taxpayer for a period 
       up to three tax years. Enter the year(s) quali  edﬁ               covering 12 years.
       investment is (was) placed into service. For             Column 1 [Year Available] – Enter the tax years for which 
       example, if you placed quali  edﬁ  investment into                a pro-rated credit is available for use (e.g., 2013 
       service during the 2013 tax year, you would                       in the  ﬁrst row, followed by 2014 in the second 
       enter 1/2013-12/2022 in the space provided for                    row, and continuing until 2022 in the tenth row). 
       Year 1. If you contemplate a multiple year project                If your investment occurred in 2013, then your 
       certi ﬁcation and your ﬁrst investment year occurred              ﬁ rst year should either be 2013 or 2014 [if you 
       in 2013, you would possibly add information for                   elected to defer the beginning year of credit on 
       Year 2 when you complete this schedule for your                   your Application Form EOTC-A].
       2014 tax return, and for Year 3 when you complete        Column 2 [Year 1] – Enter the amount of pro-rated tax credit 
       this schedule for your 2015 tax return.                           available in each year over the 10-year period.
Line 2 Investment Summary [only for quali  ed            ﬁ      Column 3 [Year 2] – If applicable and when applicable, enter 
       investment during the year]: Enter the net costs                  the amount of pro-rated tax credit available in 
       of the property in Column (1) on the appropriate                  each year for your actual investment during the 
       line determined by the life of the property. Then                 second year of a multiple year project, beginning 
       multiply the net costs in Column (1) by the                       on the row that corresponds with the year of such 
       applicable percentages in Column (2). Enter the                   investment, or the following year if so elected by 
       results in Column (3). Add the  ﬁgures in Column                  the Taxpayer. 
       (3) and enter on Line 4 of this section. The amount      Column 4 [Year 3] – If applicable and when applicable, enter 
       on Line 4 represents the  Taxpayer’s quali  edﬁ                   the amount of pro-rated tax credit available in each 
       investment for this year.                                         year for your actual investment during the third year 
                                                                         of a multiple year project, beginning on the row that 
Line 3 Available Credit Calculation: Enter your 
                                                                         corresponds with the year of such investment, or 
       quali ﬁed investment from Line 4 above in Column 
                                                                         the following year if so elected by the Taxpayer.
       (1). Enter the appropriate new jobs percentage in 
                                                                Column 5 [Total Credit] – Sum up the total available tax credit 
       Column (2). Then multiply the quali ﬁ    ed investment 
                                                                         for each applicable year (i.e., the amount in Column 
       in Column (1) by the new jobs percentage in 
                                                                         2, Column 3, and Column 4). This represents the 
       Column (2) and enter the result in Column (3). The 
                                                                         total available Economic Opportunity  Tax Credit 
       amount entered in Column 3 represents your total 
                                                                         available for tax liability reduction in each year, 
       available credit attributable to this year’s quali ﬁed 
                                                                         absent carryovers.
       investment. This credit must be pro-rated for use 
       over a ten-year period. Multiply the available credit    Line 5   Annual New Jobs/Payroll Factor Computation:
       in Column (3) by 10% to arrive at the pro-rated          a). Pre-Credit Employment Levels:
       available credit in Column (4).                          Column 1 Line  1 Enter the number of full-time equivalent 
Line 4 Pro-Rated Credit  Allocation Summary: This                        employees employed by you and other members 
       section provides for 10 years of credit information. If           of your controlled group within West Virginia during 
       the Taxpayer places investment into service over a                the twelve-month period prior to the  ﬁ rst placement 
       single tax year, the Taxpayer would have a pro-rated              of quali ﬁed investment attributable to an Economic 
       credit available over a 10-year period beginning                  Opportunity Tax Credit into service or use.
       either with the year of investment or the following      Column 2 Line 1 Enter the total dollar amount of the annual 
       year per election of the Taxpayer. If the Taxpayer                payroll associated with these employees for this 
       places investment into service over a period of up                year.
       to three tax years per certi ﬁ ed multiple year project, Column 1 Line  2Enter the number of full-time equivalent 
       then the Taxpayer would have as many as three                     new jobs created as the result of your quali  edﬁ
       separate pro-rated credit streams beginning on up                 investment.
       tothree separate years. For example, a Taxpayer          Column 2 Line 2 Enter the total dollar amount of the annual 
       with a multiple project certi ﬁ cation has tax credits of         payroll associated with these new jobs for this 
       $10 million, $5 million, and $2 million attributable to           year.
                                                                Column 1 Line 3 Enter the total number of full-time equivalent 

EOTC-1 Instructions                                                                                                  Page 5

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employees employed by you and other members Column 4Tax Subject To Credit O ﬀset On each applicable
of your controlled group within West Virginia for row, multiply the Pre-Credit Liability amount in
this year. Column 1 by both the Payroll Factor in Column 2
Column 2 Line 3Enter the total dollar amount of the annual and the O ﬀset Factor in Column 3 to arrive at the
payroll associated with all employees for this year. Tax Subject To Credit O ﬀ set in Column 4.

b). Payroll Factor: Line 7b Economic Opportunity Tax Credit Applied:
Column 1 Enter the amount of new jobs payroll here [i.e., the Column 1 Pre-Credit Liability Wherever applicable, copy
amount in 5a). Column 2, Line 2]. the amount from Section 7A, Column 1.
Column 2Enter the amount of total payroll from all jobs here Column 2Tax Subject To Credit O set ﬀ Wherever
[i.e., the amount in 5a). Column 2, Line 3]. applicable, copy the amount from Section 7A,
Column 3 Divide the amount in Column 1 by the amount Column 4.
in Column 2 and enter the result rounded to six Column 3 Tax Credit Applied Use the total credit available
decimals here. for this year from Section 4, Column 5 plus any
Line 6 Annual Tax O ﬀset Factor: The annual tax credit credit carryover from prior years [Section 8, Line 5
o ﬀset factor for 2015 depends upon the median from last year’s WV/EOTC-1] to o ﬀ set up to 100%
salary attributable to the new jobs in 2015. If of the amount of Tax Subject To Credit O setﬀ in
the median salary is at least $48,198 , your* tax Column 2 for each applicable tax starting with
o ﬀset factor is one hundred percent [100%] in the Business and Occupation Tax [B&O]. The
2015. Otherwise, your tax-o ﬀset factor is 80% in credit claimed may never exceed the value of Tax
2015. Enter the median compensation paid this Subject To Credit O ﬀset in Column 2.
year to your new employees. For example, if you Column 4 After Credit Net Tax Subtract the amount of Tax
have 51 new jobs and you sort these jobs from Credit Applied in Column 3 from the amount of
highest paid to lowest paid, the salary paid to the Pre-Credit Liability in Column 1. This represents
26th employee in this sort represents the median the net amount of tax due after application of the
salary paid for this year. [See Administrative Economic Opportunity Tax Credit.
Notices for values for other years.]
Line 8 Tax Credit Recap:
TAX CREDIT APPLICATION COMPUTATION a. Total Credit Pro-Rated For This Year – Enter the
Line 7a Tax Subject to Credit O ﬀset: amount of credit available for this tax year from
Column 1 Pre-Credit Liability Wherever applicable, enter Section 4, Column 5.
your adjusted pre-credit West Virginia State tax b. Unused Credit Carryover from Last Year: - Enter
liability for State Business and Occupation Tax the amount of any credit carried over from last
[B&O], Corporation Net Income Tax [CNIT] and year [the amount from Section 8, Line 5 from last
Personal Income Tax [PIT]. year’s WV/EOTC-1].
Total these liabilities on the last line. The adjusted c. Total Credit Available This Year – Sum the amounts
pre-credit Personal Income Tax liability is tax from Line 1 and Line 2. This amount represents
liability directly attributable to the pass-through the total available credit for use this year.
business pro ﬁts of the business entity quali ﬁed to
receive the Economic Opportunity Tax Credit. d. Total Credit Used This Year – Enter the sum of Tax
Column 2 Payroll Factor On each applicable row, enter the Credit Applied this year [the sum total of Section
payroll factor from Section 5 b.) Column 3. This 7B, Column 3].
factor should roughly represent the portion of tax e. Credit Remaining for Carryover to Next Year –
liability directly attributable to quali ﬁed investment. Subtract the amount of Total Credit Used This
If this project involves the relocation of a corporate Year on Line 4 from the amount of Total Credit
headquarters, the payroll factor only applies to Available This Year on Line 3. This amount is
tax attributable to apportioned business income, available for carryover to next year, unless next
and 100% of the tax attributable to allocated non- year represents the 13th Tax Year following the
business income may also be o setﬀ by the tax ﬁ rst year of credit use. Any Economic Opportunity
credit. Tax Credit remaining after 13 years of use is
Column 3O ﬀset Factor On each applicable row, enter the forfeited.
o ﬀset factor from Section 6. This o ﬀset factor will
either be 80% or 100% depending upon median
compensation. — Rev. 08/2022

* Per Administrative Notice 2014-21

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