Schedule IMSTTC-1
West Virginia Innovative Mine Safety Technology Tax Credit Information & Instructions
                                    (For periods on AFTER January 1, 2015)

the purpose of the West Virginia  innovative  mine  safety          unless  for  federal  income  purposes,  the  cost  of  the 
technology tax Credit is to encourage new investment in             repair must be capitalized and not expensed;
innovative coal mine safety technology in West Virginia.            (iv) motor vehicles licensed by the Department of motor 
Only innovative mine safety technology tax Credit that has          Vehicles;
been approved and allocated by the Office of Miners’ Health,        (v)  Clothing;
safety and  training  may be used  to offset West Virginia          (vi) airplanes;
taxes.
                                                                    (vii) Off-premises transportation equipment;
Pertinent definitions relative to the Innovative Mine Safety        (viii)  Lease of tangible personal property having a primary 
technology tax Credit included in the statute are as follows:       term of less than five years;
“eligible  taxpayer” means a coal mining  company which             (ix) property that is used outside West Virginia; and
purchases eligible safety property.                                 (x)  property that is acquired incident to the purchase of 
“eligible safety  property” means safety  technology                the  stock  or  assets  of  an  industrial  taxpayer,  which 
equipment, that at the time of acquisition, is on the list of       property was or had been used by the seller in his or 
approved innovative mine safety technology.                         her  industrial  business  in  West  Virginia,  or  in  which 
                                                                    investment was previously  the basis of any other 
“List of approved innovative mine safety technology” means          West Virginia tax credit.
the list required to be compiled and maintained by the mine         a proposed list of approved innovative  mine safety 
safety technology task Force and approved and published             technology is to be compiled annually by the mine safety 
by  the  director  (Director  of  the  Office  of  Miners’  Health, Technology Task Force. The Director of the Office of Miners’ 
safety and training).                                               Health, Safety and Training amends or approves the list.

“Coal mining company” means:                                        Instructions for Computation of Innovative Mine Safety 
                                                                                   Technology Tax Credit
(a)  any person subject to tax imposed on the severance 
of  coal  by  section  three,  article  thirteen-a  of  the         PART A  — Innovative Mine Safety Technology Tax 
West Virginia Code (W.Va. Code §11-13a-3); or                                      Credit Summary
(B)  Any person working as a contract miner of coal, which          Line 1 enter current year allocations of innovative mine 
mines coal in this state, under contract with a person                     safety  technology  tax  Credit as  approved by 
subject to tax imposed on the severance of coal by                         the West Virginia Office of Miners’ Health, Safety 
section  three,  article  thirteen-a  of  the  West  Virginia              and training.
Code (W.Va. Code §11-13a-3). 
                                                                    Line 2 Owners of a pass-through entity: enter the amount 
“Director” means the Director of the Office of Miners’ Health,             of innovative mine safety technology tax Credit 
Safety and Training or West Virginia Office of Miners’ Health,             allocated  to you  by the pass-through  entity that 
Safety and Training established under article one, chapter                 received a direct allocation of the credit.
twenty two-a of the West Virginia Code (W.Va. Code §22-1 
et seq.).                                                           Line 3 add the amounts for lines 1 and 2.

“Qualified purchase” means and includes only acquisitions           Line 4 Corporation net income tax:
of eligible safety property for use in West Virginia.
                                                                           a.  enter  total  West  Virginia Corporation  net 
“Qualified purchase” does not include:                                     income tax (before application  of any other 
                                                                           tax credits). Owners of a pass-through entity 
(i)  Purchases or leases of realty or any cost for, or related             whose  innovative  mine  safety  technology 
to, the construction of any building, facility or structure                tax Credit is entirely attributable to allocation 
attached to realty;                                                        from  a  pass-through  entity,  enter  only  the 
(ii)  purchases or leases of any property not exclusively                  Corporation net income tax imposed on the 
used in West Virginia;                                                     conduit income directly derived from the pass-
                                                                           through entity
(iii)  Repair  costs  including  materials  used  in  the  repair, 
West Virginia state tax Department
imsttC-1 instructions — rev. 10/15                                                                              page 1 of 2

        B.  enter the amount determined from multiplying  an ownership interest, then enter the name and Employer 
          the amount on line 6a by 0.50 (50%).                  Identification Number (EIN) of the pass-through entity and 
        C.  enter the result of subtracting the amount on       the amount of tax credit allocated to the taxpayer.

          Line 3 from $100,000.                                 If the Pass-Through Entity did not file a Schedule IMSTTC-1 
        D.  Enter  the  lesser  of  the  amounts  on  Line  5,  with their West Virginia tax returns showing the allocation 
          Line 4B, and Line 4C.                                 of  innovative  mine  safety  technology  tax  Credit to  their 
Line 5  subtract the amount on Line 4D from the amount          owners,  you  must  attach  a  copy  of  the  Office  of  Miners’ 
        on Line 3.                                              Health, Safety and Training certificate that allocated credit to 
                                                                the pass-through entity.
Line 6  If  the  Taxpayer  is  a  pass-through  entity,  enter 
        the portion of the amount of Line 7 that is to be       PART D – Current Year Unused Innovative Mine Safety 
        allocated to the pass-through entities                  Technology Tax Credit to be Allocated to Owners.
                                                                if any current year innovative mine safety technology tax 
PART B  — Innovative Mine Safety Technology Tax Credit          Credit  remains  after  application  against  the  Taxpayer’s 
Allocated by Office of Miners’ Health Safety and Training       West Virginia  tax liabilities  and the  taxpayer is a  pass-
                                                                Through  Entity,  then  the  unused  Innovative  Mine  Safety 
Line 1  Lines A & B - enter information on the amount 
                                                                Technology Tax Credit may be allocated to the Taxpayer’s 
        of innovative mine safety technology tax Credit 
                                                                Owners.
        allocated  by  the  Office  of  Miners’  Health  Safety 
        and training for the current year.                      Line 1  enter the total current year innovative mine safety 
                                                                        technology tax Credit available to the taxpayer 
        Line C – Determine the annual  amount  of 
                                                                        (this should be the same as the amount on part B 
        innovative  mine  safety  technology  tax Credit 
                                                                        Line 3)
        available  for the current year and the next 
        succeeding  4 years by dividing the amount on           Line 2  maximum innovative mine safety technology tax 
        Line 1B by 5.                                                   Credit that can be used by the taxpayer and the 
                                                                        Taxpayer’s owners. Enter the lesser of $100,000 
Line 2  enter annual amounts of innovative mine safety 
                                                                        and the amount on Line 1.
        technology tax Credit from prior years.
                                                                Line 3  enter the amount of  innovative  mine  safety 
Line 3  Compute a preliminary total annual  innovative 
                                                                        technology  tax Credit used by the  taxpayer to 
        mine safety technology tax Credit by adding the 
                                                                        reduce Corporation net income tax liability.
        amounts on Line 1C and Line 2e.
                                                                Line 4  amount of current  year unused  innovative 
Line 4  Enter $100,000 – the maximum Innovative Mine 
                                                                        mine  safety  technology  tax Credit for  potential 
        safety  technology  tax  Credit  that  can be used 
                                                                        allocation  to owners of the  taxpayer.  enter the 
        this year.
                                                                        amount resulting from subtracting  the value  on 
Line 5  Compute the innovative mine safety technology                   line 3 from the value on line 2.
        tax Credit available this year as the lesser of the 
                                                                if  any  of  the  amount on Line  5  is  to  be allocated to  the 
        amount on Line 3 and the amount on Line 4.
                                                                owners of the Taxpayer, enter the Owner’s name, Owner’s 
PART C – Innovative Mine Safety Technology Tax                  Employer  Identification  Number  (EIN),  the  Owner’s 
Credit Received from a Pass-Through Entity in which             percentage of ownership of the Taxpayer, and compute the 
        the Taxpayer has an Ownership Interest.                 amount of innovative mine safety technology tax Credit to 
                                                                be allocated as the product of the amount on Line 5 and the 
if innovative mine safety technology tax Credit has been        Owner’s percentage of ownership of the Taxpayer.
allocated by a pass-through entity in which the taxpayer has 

West Virginia state tax Department
imsttC-1 instructions — rev. 10/15                                                                            page 2 of 2