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110CSR21G

TITLE 110 LEGISLATIVE RULE STATE TAX DIVISION

SERIES 21G INCOME TAX PAID AT THE ENTITY LEVEL BY ELECTING PASS-THROUGH ENTITIES

§110-21G-1. General.

1.1. Scope. -- This rule provides requirements, procedures and limitations for filing and payment of income tax by electing pass-through entities and assertion of credits and deductions in accordance with W. Va. Code §11-21-3a.

1.2. Authority. -- W. Va. Code §11-21-3a(p).

1.3. Filing date. -- April 30,2024.

1.4. Effective date. -- April 30, 2024.

1.5. Sunset Provision. -- This rule shall terminate and have no further force or effect after August 1, 2029.

§110-21G-2. Definitions.

2.1. General Rule. -- Unless a specific definition is provided elsewhere in this rule, or the context in which the term is used clearly requires a different meaning, the terms used in this rule have the definitions provided under W. Va. Code §§11-10-1 et seq., 11-21-1 et seq., and 11-24-1 et seq.

2.2. Terms defined. 2.2.1. The definitions set forth in W.Va. Code §11-21-3a are incorporated here by reference.

2.2.2. “Owners of qualifying pass-through entity” or “owners” means the partners of a partnership or other pass-through entity, or shareholders of an S-corporation.

2.2.3. “Partners” means a person that holds an interest directly or indirectly in a partnership or other pass-through entity. For the purposes of this rule, “person” includes, but is not limited to, any individual, firm, partnership, limited partnership, co-partnership, limited liability company, other pass- through entity, joint venture, association, corporation, municipal corporation, organization, receiver, estate, trust, guardian, executor, administrator, and any other group or combination acting as a unit.

2.2.4. “Reconciliation tax credit” means a credit that owners of an electing pass-through entity may take against their West Virginia personal income tax liability for income taxes paid by the electing

pass-through entity.

§110-21G-3. Introduction.