W. Va. Code § 5E-1-1
Short title
The article may be cited as the "West Virginia Capital Company Act."
West Virginia Code Chapter 5E — Venture Capital Company
West Virginia · statute · W. Va. Code ch. 5E · 28 active provisions
W. Va. Code § 5E-1-2
Declaration of policy
(a) The Legislature finds and declares that the West Virginia economy can be strengthened by promoting private investment in West Virginia businesses. (b) The Legislature further finds that: (1) Investment of capital in the West Virginia economy can be promoted by making tax credits available to taxpayers investing in…
W. Va. Code § 5E-1-3
Purposes
(a) The purpose of this article is to promote the development of the human resources and the diversification of the economy of West Virginia. The investment capital generated by this article must be used to encourage and assist the strengthening of the economy through loans, equity investments, and other business trans…
W. Va. Code § 5E-1-4
Definitions
As used in this article, the following terms have the meanings ascribed to them in this section, unless the context in which the term is used clearly requires another meaning or a specific different definition is provided: (a) "Authority" means the West Virginia economic development authority, provided for in article f…
W. Va. Code § 5E-1-5
Rules
The authority shall promulgate rules in accordance with article three, chapter twenty-nine-a of this code to carry out the policy and purposes of this article, to provide any necessary clarification of the provisions of this article and to efficiently provide for the general administration of this article. The authorit…
W. Va. Code § 5E-1-6
Qualification of West Virginia capital companies
(a) The authority shall qualify West Virginia capital companies commencing after the effective date of this article. A company seeking to be qualified as a West Virginia capital company shall make written application to the authority on forms provided by the authority. The application shall contain the information requ…
W. Va. Code § 5E-1-7
Minimum standards of qualified West Virginia capital companies
The following requirements apply to all qualified companies: (a) A qualified company shall be a certified West Virginia capital company. (b) A qualified company shall have a reasonably accessible business office located within the State of West Virginia, which office has a listed telephone number and is open to the pub…
W. Va. Code § 5E-1-8
Tax credits
(a) The total amount of tax credits authorized for a single qualified company may not exceed $2 million. The total amount of tax credits authorized for a single economic development and technology advancement center may not exceed $1 million. Capitalization of the company or center may be increased pursuant to rule of…
W. Va. Code § 5E-1-9
Recaptures; unqualified investments
A taxpayer receiving a credit hereunder is not subject to a recapture provision for any credit claimed by the taxpayer but the company is subject to the civil penalty provided for in subsection (e), section twelve of this article.
W. Va. Code § 5E-1-10
Application requirements
(a) Each company shall make application to the authority on forms provided by the authority, which shall set forth: (1) The capitalization level of capital company; (2) The purpose of the company; (3) The names of investors; (4) A process for disclosing to investors the tax credit available pursuant to this article. Th…
W. Va. Code § 5E-1-11
Disclaimer of liability of the state
The state of West Virginia shall not be liable to any investor or qualified capital company as a result of this article or any of the activities authorized herein by any court of law.
W. Va. Code § 5E-1-12
Qualified investments; liquidation or dissolution
(a) A qualified West Virginia capital company shall use its capital base to make qualified investments according to the following schedule: (1) At least thirty-five percent of its capital base within the first year of the date on which the capital company which is not a small business investment company was designated…
W. Va. Code § 5E-1-13
Restrictions on investment
(a) No more than thirty percent of the equity raised by a West Virginia capital company under this article may be invested in any one West Virginia business. (b) No portion of the capital base of a West Virginia capital company may be invested in a business that is the "alter ego" of that West Virginia capital company.…
W. Va. Code § 5E-1-14
Conflict of interest
No officer, member or employee of the authority shall be financially interested, directly or indirectly, in any capital company.
W. Va. Code § 5E-1-15
Investment reporting and record keeping
(a) Each qualified West Virginia capital company shall report, at a minimum, to the Tax Commissioner and the authority on a semiannual basis: (1) The name of each investor in the qualified West Virginia capital company who is entitled to a tax credit; (2) The amount of each investor's investment in the capital company;…
W. Va. Code § 5E-1-16
Examination
(a) Annually each qualified capital company and center shall cause its books and records to be audited by an independent certified public accountant in accordance with generally accepted auditing and accounting principles. In addition to the performance of a financial audit, the audit shall address the methods of opera…
W. Va. Code § 5E-1-17
Failure to comply
(a) If the examination conducted pursuant to section sixteen of this article discloses that a West Virginia capital company or center is not in compliance with the provisions of this article, the authority may exercise any of the powers necessary and appropriate to protect the authority's interest. (b) The authority sh…
W. Va. Code § 5E-1-18
Ruling procedure
(a) The authority may issue an informal ruling as to its position on the application of this article and the rules promulgated thereunder to a stated transaction or event. (b) Such rulings will only be issued after receipt of a written request and payment of a nonrefundable filing fee. (c) Such rulings shall not consti…
W. Va. Code § 5E-1-19
Effective date; transition rules
(a) The provisions of subsection (d), section eight of this article relating to credit carryback that were in effect on January 1, 1990, apply to any credit earned prior to the effective date of the amendments to that subsection, notwithstanding the fact that the taxpayer's taxable year does not end until a date on or…
W. Va. Code § 5E-1-20
Limitation on financial institutions
Not more than forty-nine percent of the total capital base of any capital company which is not a small business investment company may be owned by banks, savings and loan associations, savings banks or other financial institutions, or any affiliate thereof, as investors. No officer, employee or director of any such fin…
W. Va. Code § 5E-1-21
Confidentiality
(a) The authority shall, by the promulgation of rules, determine which records, reports, or information obtained from any person or entity under this article are to be treated by the agency as confidential and not subject to disclosure, except as hereinafter provided in subsection (c) of this section: Provided, That no…
W. Va. Code § 5E-1-22
Decertification of qualified capital companies other than small business investment companies
Notwithstanding any provision in this article to the contrary, the authority may not hereafter allocate credit to any applicant other than a small business investment company. Every qualified capital company that is not a small business investment company may no longer be considered a qualified capital company and shal…
W. Va. Code § 5E-1-23
Elimination of credit; effective date
Notwithstanding any other provision of this article to the contrary, no entitlement to any tax credit under this article shall result from, and no tax credit shall be available to, any taxpayer for any investment in a West Virginia capital company made after December 31, 2006: Provided, That the provisions of this arti…
W. Va. Code § 5E-2-1
Short title
The article may be cited as the "West Virginia Venture Capital Act."
W. Va. Code § 5E-2-2
Definitions
As used in this article, the following terms have the meanings ascribed to them in this section, unless the context in which the term is used clearly requires another meaning or a specific different definition is provided: (a) "Authority" means the West Virginia economic development authority, provided for in article f…
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