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                            Schedule EOTC-1
             InstructIons for EconomIc opportunIty tax crEdIt
                                   (for pErIods aftEr January 1, 2015)

             General Information                                    least 280 new jobs is allowed a credit equal to 25% of its 
the purpose of the economic Opportunity tax Credit is to            qualified investment, and a business creating at least 520 
promote  net employment  growth within  West Virginia.  in          new  jobs  can  claim  30%  of  its  qualified  investment.  For 
return for net employment  growth (e.g., twenty (20) new            projects having qualified investment of $20 million or more 
jobs)  through  capital  investment, the  state provides  a tax     that are constructed using construction labor and mechanics 
credit to offset the additional taxes directly attributable to the  numbering 75 or more employees or equivalent employees, 
qualified investment and new jobs.                                  who are paid an average wage of at least prevailing wage; 
                                                                    the new jobs percentage for the 20 to 520 employee range 
the  economic Opportunity  tax Credit is available  to  is increased by 5 percentage points.
qualified  businesses  that  make  a  qualified  investment  (on 
or after January 1, 2003) in a new or expanded business in          If New West Virginia Jobs Total at          The Applicable 
West Virginia and, as a result of this investment, create at        least:                                      Percentage is:
least twenty (20) new jobs. Qualified business include only         520                                         30%
those engaged in the activities of manufacturing, information 
processing,  warehousing,  non-retail  goods  distribution,         280                                         25%
qualified  research  and  development,  the  relocation  of  a      20                                          20%
corporate  headquarters,  or  destination-oriented  recreation 
and tourism.                                                        15 Corporate headquarters relocation only   10%
                                                                    10 small business credit (see below)        10%
application for credit required
                                                                           Jobs Calculation
taxpayers must complete an application for West Virginia 
economic Opportunity tax Credit (Form WV/eOtC-a) with               the new jobs percentage is based on the number of new 
the Tax Commissioner and receive written acknowledgment             jobs created in this  state that are directly attributable to 
of such application prior to claiming the credit. the application   the  qualified  investment  in  a  new  or  expanded  business 
must  be  filed  annually  no  later  than  the  due  date  of  the facility. the number of new jobs created by the investment 
taxpayer’s annual income tax return determined with regard          is determined by the net increase in employment by the 
to any extension of time for filling such returns. Form WV/         business (or controlled group of businesses) in West Virginia 
EOTC-A must be filed on a timely basis before claiming tax          over a base year level.  the base year is the 12-month 
credits. Failure to do so will result in forfeiture of 50% of the   period  immediately  preceding  the  placement  of  qualified 
annual credit allowance utilized until the application is filed.    investment  into  service  or  use.  The  hours  of  qualified 
                                                                    part-time employees may be aggregated to determine the 
             Certified Projects                                     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 certified by the Tax Commissioner. A project eligible       a “new Job” is one that did not exist in the business of the 
for certification is one in which:                                  taxpayer in this state prior to the investment in the new or 
The qualified investment creates at least twenty (20) new           expanded business facility. This position must be filled by a 
jobs but such investment is placed in service or use over           new employee. the number of new jobs is the net of new 
a period  of  three (3) successive tax  years rather than a         jobs  created  less any jobs  lost in any part or segment  of 
period of 365 days or less.  the investment is eligible  for        the employer’s business in West Virginia over the same time 
project certification only if made in accordance with a written     period.

business facility development plan, and the investment              a “new  employee”  is a West Virginia  domiciled  resident 
placed in service or use during the first year would not have       hired  to  fill  one  of  the  new  jobs  on  a  permanent  basis. 
been made without the expectation of making the qualified           temporary or seasonal employment does not qualify as a 
investment placed in service or use during the next two (2)         new job. persons hired on a temporary or seasonal basis do 
succeeding tax years.                                               not qualify as new employees.

A qualified business creating at least twenty (20) new jobs         For all economic Opportunity tax Credit applications, except 
within three (3) tax years is allowed a credit equal to 20%         small business, an estimation of the expected number of new 
of its qualified investment. This percentage increases with         jobs is made in the first taxable year for which the credit is 
the number of new jobs created.  a business  creating  at           claimed. in the third tax year the actual number of new jobs 

West Virginia state tax Department
eOtC-1 instructions — rev. 10/15                                                                                page 1 of 7

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created must be certified by the business. Adjustments must total net Full-time equivalent employees = 50.18
be made for the new jobs percentage if the number of new
jobs certified varies from the number of new jobs estimated. * Must work for at least 6 months at 20 or more hours per
the allowable credit is then redetermined for prior and future week to qualify
years. Once certified, if the number of new jobs declines in
** These employees work at least 20 hours per week for at
any tax year, resulting in a decreased new jobs percentage,
least 6 months during the year
the credit is redetermined. However, if the number of new
jobs subsequently increases to the former threshold, the *** Hours beyond 1,680 may not be counted as additional
credit will be reinstated. employees.
A qualified small business with no more than $9,233,450*
in annualized sales must create at least ten (10) new Required Employment Records
West Virginia jobs within twelve (12) months of placement of the taxpayer must maintain records to establish the
qualified investment into service or use. See administrative following:
notice 2014-22 for tax years beginning during calendar year
2015. if the number of new jobs declines in any subsequent 1. total full-time equivalent employment in place during
year below the minimum of ten (10), then the credit is lost for the year immediately preceding the year qualified
that year. However, if the number of new jobs subsequently investment was first placed into service or use.
increases to the former threshold, the credit will be reinstated. 2. total full-time equivalent employment in place during
if the new number of new jobs rises to twenty (20) or more, each year of the project.
then the new jobs percentage will increase to twenty percent
such records must be retained for a period of three (3) years
(20%), and the general job calculation rules of the economic
after the last year for which the credit is claimed.
Opportunity Credit will apply.
A job is attributable to the qualified investment if: Qualified Investment Property
1. the employee’s service is performed or his base of Qualified investment property is property constructed,
operations is at the new or expanded facility; and purchased, leased or transferred into West Virginia and
placed in service or use, as a component of a new or
2. The position did not exist prior to the making of the
expanded business facility located in this state. the amount
investment in the new or expanded facility; and,
of the qualified investment is determined by the cost, or
3. the position exists only because of the investment in other basis, and the useful life of the property.
the new or expanded facility.
Critical elements in the determination of qualified investment
Calculation of Full-Time Equivalent Employees property for purposes of this credit are how, and from whom,
The hours of qualified part-time employees are aggregated the property is acquired; the acquisition date; date and term
to determine the number of equivalent full-time employees of a lease; transfer date; date placed in service or use in this
for the purpose of determining the applicable new jobs state; as well as the useful life of the property.
percentage. However, they may not be aggregated for the
purpose of determining when a job is attributable to the For the economic Opportunity tax Credit, qualifying
qualified investment. investment property acquired and placed in service or use
in this state on or after January 1, 2003 may be counted
Part-time employment qualifies if the employee works at toward the credit.
least twenty (20) hours per week for at least six (6) months
or 520 hours per year (26 weeks @ 20 hours per week). Full- Qualified Investment Property May Include:
time employment is 140 hours per month or 1,680 hours per 1. real property and improvements thereto, having a
year (140 hours times 12 months). The following example useful life of four (4) or more years placed in service
illustrates a calculation of full-time equivalent employees: or use in West Virginia on or after January 1, 2003.
2. real property and improvements thereto, or tangible
Qualified Employees full-time net full-time
personal property acquired by written lease with
Equivalent Equivalent
a primary term of ten (10) or more years placed in
200 @ < 520 hrs 1,680 Do not Qualify* service or use in West Virginia on or after January 1,
50 @ 750 hrs 1,680** = 22.32 2003.
20 @ 1,500 hrs 1,680** = 17.86 3. Depreciable or amortizable tangible personal property
6 @ 1,700 hrs 1,680*** = 6.00 placed in service or use in West Virginia on or after
January 1, 2003 with a useful life of four (4) or more
4 @ 2,080 hrs 1,680*** = 4.00
years at the time the property is placed in service or
use in this state.
* Administrative notice 2014-22 for tax years during
calendar year 2015. 4. tangible personal property acquired by written lease
West Virginia state tax Department
eOtC-1 instructions — rev. 10/15 page 2 of 7

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having a primary term of four (4) or more years that 6. the date it was disposed of or otherwise ceased to be
was commenced and executed on or after January 1, qualified property.
2003. such records must be retained for a period of three (3) years
5. tangible personal property owned or leased, used at after the last year for which the credit is claimed.
a business location outside this state which is moved
into this state on or after January 1, 2003. if owned, Cost or Other Basis
property must be depreciable or amortizable and 1. the cost of purchased property may not include the
have a useful life of four (4) or more years remaining value of property given in trade or exchange for the
at the time the property is placed in service or use property purchased.
in this state. if leased, the primary term of the lease
2. the cost of replacement property may not include
remaining at the time the property is placed in service
any insurance proceeds received in compensation for
or use in West Virginia must be four (4) or more years.
property damaged or destroyed by fire, flood, storm or
Qualified Investment Property May Not Include: other casualty or is stolen.
1. property owned or leased, for which another tax 3. the cost of real property with a written primary lease
credit (e.g. for manufacturing investment tax Credit, term of ten (10) or more years is 100% of the rent
industrial expansion and revitalization; or research reserved for the primary term of the lease, not to
and Development Projects) has been taken by the exceed twenty (20) years.
taxpayer, seller, lessor, or other transferor.
4. the cost of tangible personal property with a written
2. repair costs, unless capitalized for federal income tax primary lease term of at least four (4) years but less
purposes. than six (6) years is one-third (1/3) of the rent reserved
3. airplanes. for the primary term of the lease.
4. property primarily used outside this state. 5. For tangible personal property with a written primary
lease term of at least six (6) years but less than
5. property acquired incidental to the purchase of the eight (8) years, the cost is two-thirds (2/3) of the rent
stock or assets of the seller. This restriction can be reserved for the primary term of the lease.
waived by the tax Commissioner.
6. For tangible personal property with a written lease
6. natural resources in place. term of eight (8) or more years, the cost is 100% of the
7. property purchased or leased, the cost of which cannot rent reserved for the primary term of the lease, not to
be quantified when such property is placed in service. exceed twenty (20) years. the rent reserved may not
8. Property not directly attributable to the qualified include rent for any year subsequent to the expiration
investment activity (e.g. recreational boat, vehicle for of the book life of the property, determined by use of
personal use). the straight line method of depreciation.
7. For qualifying property purchased for multiple use the
Date Placed In Service or Use
cost must be pro-rated.
property is considered to be placed in service or use in the
earlier of: 8. For self-constructed property the cost is the amount
properly charged to the capital account for depreciation
1. the taxable year in which, under the taxpayer’s in accordance with federal income tax law.
depreciation practice, the period for depreciation for 9. the cost of property transferred into this state is
such property begins; or determined based on remaining useful life of the
2. the taxable year in which the property is placed in a property at the time it is placed in service or use in this
condition of state or readiness and availability for a state. the cost is the original cost of the property to
specifically assigned function. the taxpayer less straight line depreciation allowable
for tax years, or portions of tax years, the property was
Required Records
used outside West Virginia.
For each item of qualified property, the taxpayer must
10. For leased tangible personal property transferred into
maintain records to establish the following:
this state, the cost is based on the period remaining
1. its identity. in the primary term of the lease after the property is
brought into this state for use in a new or expanded
2. its actual or reasonably determined cost. business. the cost is the rent reserved for the
3. the month and taxable year in which it was placed in remaining period of the primary lease term, not to
service or use. exceed twenty (20) years or the remaining useful life,
4. its straight line depreciation. whichever is less.
5. The amount of credit taken. 11. For leased property placed into service for which the

West Virginia state tax Department
eOtC-1 instructions — rev. 10/15 page 3 of 7

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cost is not quantifiable at the outset of the lease, only  For example, if a Taxpayer purchases a machine for $25,000, 
the quantifiable portion, if any, may be aggregated as                 for use in a new industrial facility, which has a useful life of 
a qualified investment.                                                six (6) years, the qualified investment is equal to $16,666.66. 
12. the cost of relocating corporate headquarters is the               The  $25,000  investment  is  multiplied  by  the  applicable 
expenses incurred and paid by  the  corporation to                     useful life percentage of 66 2/3% to arrive at $16,666.66 in 
unrelated third parties and which have been certified by               qualified investment.

the tax Commissioner to have been both reasonable                      the credit can offset a portion of the tax attributable to 
and necessary to effectuate the move.                                  qualified investment for the Business and Occupation Tax 
       Corporate Headquarters Relocation                               [electric  power generation  taxes only], Corporation  net 
the Corporate Headquarters relocation Credit is allowable              Income Tax, and Personal Income Tax [tax on flow through 
for corporate headquarters  placed  in service or use in               business profits only], in the order stated.

West Virginia on or after January 1, 2003. an out-of-state             the economic Opportunity tax Credit is generally available 
corporation  relocating  its headquarters  to West Virginia            for investment placed into service or use over a period of 
is  allowed  a  tax  credit  if  it  employs  at  lease  fifteen  (15) 365 days, beginning on the date when property purchased 
domiciled West Virginia residents on a full-time basis at its          or leased for business expansion is first placed into service 
new location.                                                          or use. provisions are available for multiple year projects as 
The adjusted qualified investment is the same as the qualified         long as project certification has been obtained from the Tax 
investment determined for  the  economic Opportunity  tax              Commissioner.
Credit, plus the cost of reasonable and necessary expenses 
                                                                       redetermination, forfeiture, and recapture of credit
incurred to relocate the corporate headquarters.
                                                                       If  during  any  taxable  year,  property  used  as  a  qualified 
the amount of the credit is determined by multiplying the  investment for any of these credits is disposed of prior to 
adjusted qualified investment by 10 percent (10%). However,            the end of its useful life or ceases to be used in an eligible 
if at least twenty (20) jobs are attributable to the relocation or a  business,  the unused  portion of the credit attributable 
combination of other qualified investment and the relocation,          to that investment is forfeited for the taxable  year and all 
the regular  economic Opportunity tax Credit percentages  ensuing years. Forfeiture also applies if the taxpayer ceases 
beginning at twenty percent (20%) may be used.                         operation of a business facility for which credit was allowed 
                                                                       before expiration of the useful life of the qualified investment 
calculation of Economic opportunity tax credit                         property.  the failure to create or maintain the necessary 
the credit is determined by multiplying the amount of the  number of new jobs for credit entitlement also results in 
taxpayer’s qualified investment by the taxpayer’s new jobs             credit forfeiture.
percentage and is  generally  applied over a  ten  (10) year 
period (at 1/10th per year) beginning in the taxable year in           redetermination, forfeiture, and recapture of credit
which the qualified investment is placed in service or use,            1.  Failure to  create the  minimum number of  new jobs 
or, at the taxpayer’s option, in the next succeeding tax year.            within the required two to three year period: The entire 
For example, a Credit of $200,000 attributable to $1 million              credit is forfeited. Any Credit claimed during the first 
of qualified investment made in 2003 is applied at a rate of              three (3) years must be paid back (recaptured) with 
$20,000 per year for the 2003-2012 period, or alternatively,              interest and a ten (10%) percent penalty.
at a rate of $20,000 per year for the 2004-2013 period.                2.  Failure to maintain the minimum number of new jobs in 
This  calculation  of  qualified  investment  is  determined  by          any year subsequent to the initial three-year (3) period 
multiplying the net cost of eligible property by its applicable           (i.e.  years  four  (4)  through  ten  (10)):  The  credit  is 
useful  life percentage  based  on the projected  actual                  forfeited for any year in question, but may be reinstated 
economic useful life of the asset. the following percentages              for any remaining year in which the minimum number 
apply:                                                                    is attained, thus enabling the taxpayer to utilize the full 
                                                                          annual credit allowance for that taxable year.
                                 The Applicable                        3.  Failure to maintain the number of jobs necessary to 
       If Useful Life is:        Percentage is:                           attain a jobs percentage in the 25% to 30% category: 
Less than 4 years                               0 %                       the credit for year (s) affected must be redetermined 
                                                                          to reflect the jobs percentage attributable to the actual 
4 years or more but less than 6                 33 ⅓ %
                                                                          employment increase.
years
                                                                       4. Credit attributable to property that ceases to be used 
6 years or more but less than 8                 66 ⅔ %
                                                                          in this state prior to the end of its categorized useful 
years
                                                                          life must be recalculated for all tax years according to 
8 years or more                                 100 %                     actual useful life. if the recalculation of credit according 

West Virginia state tax Department
eOtC-1 instructions — rev. 10/15                                                                                   Page 4 of 7

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to actual useful life results in an overutilization in a this schedule for your 2005 tax return.
previous year, then a reconciliation statement must be
filed with the payment of any additional tax and interest Line 2 Investment Summary [complete if you made
due. Credit attributable to property with a useful life of qualified investment during the year]: enter
less than four (4) years is forfeited for all years. the net costs of the property in Column (1) on
the appropriate line determined by the life of the
EXAMPLE property. then multiply the net costs in Column
Company A creates 50 new jobs and invests $10 million in (1) by the applicable percentages in Column (2).
equipment with a designated useful life of eight (8) years Enter the results in Column (3). Add the figures
in 2003. the credit for Company a is calculated to equal in Column (3) and enter on Line 4 of this section.
$2,000,000 or $200,000 per year for ten (10) years. However, The amount on Line 4 represents the Taxpayer’s
Company A moves this equipment to New York in 2008; qualified investment for this year.
therefore the equipment’s actual useful life in West Virginia
is reduced to only five (5) years. The corresponding credit Line 3 Available Credit Calculation: enter your
is reduced according to the above formula from $2,000,000 qualified investment from Line 4 above in Column
to $666,667 or $66,667 per year for ten (10) years. A (1). enter the appropriate new jobs percentage in
reconciliation statement for tax years 2003 through 2008 Column (2). Then multiply the qualified investment
reflecting an overutilization of credit must be filed with in Column (1) by the new jobs percentage in
payment of any additional tax, interest, and penalties owed. Column (2) and enter the result in Column (3). the
amount entered in Column 3 represents your total
Redetermination is not Required: available credit attributable to this year’s qualified
1. For a mere change in the form of conducting business. investment. this credit must be pro-rated for use
However, the property must be retained in a business over a ten-year period. multiply the available credit
in this state and the taxpayer must retain a controlling in Column (3) by 10% to arrive at the pro-rated
interest in the successor business . available credit in Column (4).

2. if the forfeiture occurs because property is stolen, or Line 4 Pro-Rated Credit Allocation Summary: this
damaged by fire, flood, storm, or other casualty. spreadsheet contains space for twelve rows of
3. if the business is transferred or sold to a successor tax credit data. if the taxpayer places investment
business in this state. according to laws governing the into service over a single tax year, the taxpayer
credit, any available credit allowed for is subsequent would have a pro-rated credit available over a
tax years. 10-year period beginning either with the year of
investment or the following year per election of
the tax Credit Computation schedule is designed to the taxpayer. if the taxpayer places investment
accommodate all or any part of these tax credits. Contained into service over a period of up to three tax
within the schedule and instructions is more detailed years per certified multiple year project, then the
information regarding the economic Opportunity tax Credits. taxpayer would have as many as three separate
pro-rated credit streams beginning on up tothree
Instructions for Schedule EOTC-1
separate years. For example, a taxpayer with a
Complete business identification section, including business multiple project certification has tax credits of $10
name, address, tax year, federal identification number and million, $5 million, and $2 million attributable to
North American Industry Classification System (NAICS) the 2003, 2004 and 2005 tax years. This Taxpayer
code. elects to begin claiming each tax credit in the
year investment was first placed into service.
Line 1 Investment Years: the investment window for Therefore, the Taxpayer has a pro-rated $1 million
the economic Opportunity tax Credit is normally per year tax credit for the 2003-2012 period, a
one full year. However, the investment window prorated $0.5 million per year tax credit for the
for projects with a multiple year certification is 2004-2013 period, and a pro-rated $0.2 million
up to three tax years. Enter the year(s) qualified per year tax credit for the 2005-2014 period. An
investment is (was) placed into service. For economic Opportunity tax Credit is available to
example, if you placed qualified investment into this taxpayer for a period covering 12 years.
service during the 2003 tax year, you would
enter 1/2003-12/2003 in the space provided for Column 1 [Year available] – enter the tax years for which
Year 1. if you contemplate a multiple year project a pro-rated credit is available for use (e.g., 2003 in the first
certification and your first investment year occurred row, followed by 2004 in the second row, and continuing
in 2003, you would possibly add information for until 2012 in the tenth row). if your investment occurred in
Year 2 when you complete this schedule for your 2003, then your first year should either be 2003 or 2004 [if
2004 tax return, and for Year 3 when you complete you elected to defer the beginning year of credit on your

West Virginia state tax Department
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application Form eOtC-a].                                           Line 6 Annual Tax Offset Factor: the annual tax credit 
                                                                           offset factor for 2015 depends upon the median 
Column 2 [Year 1] – enter the amount of pro-rated tax credit               salary attributable to  the new jobs in 2015.  if 
available in each year over the 10-year period.                            the median salary is at least $48,198**, your tax 
                                                                           offset factor is one  hundred  percent  [100%]  in 
Column 3 [Year 2] – if applicable and when applicable, enter 
                                                                           2015. Otherwise, your tax-offset factor is 80% in 
the amount of pro-rated tax credit available in each year for 
                                                                           2015.  enter the median  compensation  paid  this 
your actual investment during the second year of a multiple 
                                                                           year to your new employees. For example, if you 
year project, beginning on the row that corresponds with the 
                                                                           have 51 new jobs and you sort these jobs from 
year of such investment, or the following year if so elected 
                                                                           highest paid to lowest paid, the salary paid to the 
by  the  Taxpayer.  Column  4  [Year  3]  –  If  applicable  and 
                                                                           26th employee in this sort represents the median 
when  applicable,  enter the amount of pro-rated  tax credit 
                                                                           salary paid for this year. [See  Administrative 
available in each year for your actual investment during the 
                                                                           Notices for values for other years.]
third year of a multiple year project, beginning on the row 
that corresponds with the year of such investment, or the                    tax credit application computation
following year if so elected by the taxpayer.
                                                                    Line 7a   Tax Subject to Credit Offset:
Column 5 [total Credit] –  sum up the total available  tax 
credit for each applicable year (i.e., the amount in Column 2,      pre-Credit Liability [Column 1] – Wherever applicable, enter 
Column 3, and Column 4). This represents the total available        your adjusted pre-credit West Virginia state tax liability for 
economic  Opportunity  tax Credit available  for tax liability      State Business and Occupation Tax [B&O], Corporation Net 
reduction in each year, absent carryovers.                          income tax [Cnit] and personal income tax [pit].

                                                                    total these liabilities on the last line. the adjusted pre-credit 
Line 5 Annual New Jobs/Payroll Factor Computation:
                                                                    personal income tax liability is tax liability directly attributable 
a). Pre-Credit Employment Levels:                                   to the pass-through business profits of the business entity 
                                                                    qualified to receive the Economic Opportunity Tax Credit.
Column 1, Line 1-enter the number of full-time equivalent 
employees  employed  by you and  other members  of your  payroll Factor [Column 2] – On each applicable row, enter 
controlled group within West Virginia during the twelve-month  the payroll factor from section 5 b.) Column 3. this factor 
period  prior  to  the  first  placement  of  qualified  investment should roughly represent the portion of tax liability directly 
attributable to an  economic Opportunity  tax Credit into           attributable  to  qualified  investment.  If  this  project  involves 
service or use.                                                     the relocation of a corporate headquarters, the payroll factor 
                                                                    only applies to tax  attributable to apportioned  business 
Column 2, Line 1-enter the total dollar amount of the annual  income, and 100% of the tax attributable to allocated non-
payroll associated with these employees for this year.              business income may also be offset by the tax credit.
Column 1, Line 2- enter the number of full-time equivalent  Offset Factor [Column 3] – On each applicable row, enter the 
new jobs created as the result of your qualified investment.        offset factor from section 6. this offset factor will either be 
                                                                    80% or 100% depending upon median compensation.
Column 2, Line 2- enter the total dollar amount of the annual 
payroll associated with these new jobs for this year.               Tax Subject To Credit Offset [Column 4] – On each applicable 
                                                                    row, multiply the pre-Credit Liability amount in Column 1 by 
Column 1,  Line 3-  enter the total number of  full-time            both the payroll Factor in Column 2 and the Offset Factor 
equivalent employees employed by you and other members              in Column 3 to arrive at the tax subject to Credit Offset in 
of your controlled group within West Virginia for this year.        Column 4.
Column 2, Line 3- enter the total dollar amount of the annual       Line 7b  Economic Opportunity Tax Credit Applied:
payroll associated with all employees for this year.                pre-Credit Liability [Column 1] – Wherever applicable, copy 
b). Payroll Factor:                                                 the amount from section 7a, Column 1.

Column 1- enter the amount of new jobs payroll here [i.e.,          tax  subject  to Credit  Offset [Column  2] – Wherever 
the amount in 5a). Column 2, Line 2].                               applicable, copy the amount from Section 7A, Column 4.

Column 2-  enter  the amount  of  total payroll from  all jobs      tax Credit applied [Column 3] – Use the total credit available 
here [i.e., the amount in 5a). Column 2, Line 3].                   for  this  year  from  Section  4,  Column  5  plus  any  credit 
                                                                    carryover from prior years [section 8, Line 5 from last year’s 
Column 3- Divide the amount in Column 1 by the amount in  WV/eOtC-1]  to offset up to 100%  of the amount of  tax 
Column 2 and enter the result rounded to six decimals here.         subject to Credit Offset in Column 2 for each applicable tax 

                                                                    **     Per Administrative Notice 2014-21
West Virginia state tax Department
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starting with the Business and Occupation Tax [B&O]. The from section 8, Line 5 from last year’s WV/eOtC-1].
credit claimed may never exceed the value of tax subject to
Credit Offset in Column 2. c. total Credit available this Year – sum the amounts from
Line 1 and Line 2. this amount represents the total available
After Credit Net Tax [Column 4] – Subtract the amount of Tax credit for use this year.
Credit applied in Column 3 from the amount of pre-Credit
Liability in Column 1. this represents the net amount of tax d. total Credit Used this Year – enter the sum of tax Credit
due after application of the economic Opportunity tax Credit. Applied this year [the sum total of Section 7B, Column 3].

Line 8 Tax Credit Recap: e. Credit remaining for Carryover to next Year – subtract
the amount of Total Credit Used This Year on Line 4 from the
a. total Credit pro-rated For this Year – enter the amount amount of total Credit available this Year on Line 3. this
of credit available for this tax year from Section 4, Column 5. amount is available for carryover to next year, unless next
year represents the 13th Tax Year following the first year of
b. Unused Credit Carryover from Last Year: - Enter the credit use. any economic Opportunity tax Credit remaining
amount of any credit carried over from last year [the amount after 13 years of use is forfeited.

West Virginia state tax Department
eOtC-1 instructions — rev. 10/15 page 7 of 7

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