Rev. 07-11
Schedule
                                                                                                West Virginia 
                                                                                                  State Tax 
            Telephone Utilities Rate Reduction Credit                                           Department
K

Telephone Utilities Rate Reduction Credit

Taxpayers who provide telephone service at special reduced rates to certain low income residential customers 
are eligible to claim this credit. The West Virginia Public Service Commission will certify the amount of the 
revenue deficiency, resulting from the provision of the service, to the eligible taxpayers.

The amount of the credit is the cost providing the service to qualified customers, less any reimbursement received 
through any other means. This amount must be certified by the Public Service Commission and a   copy of the 
certification order must be attached to the return on which the credit is claimed. The credit is allowed on the tax 
return for the taxable year in which the certification is received.

The credit is first claimed against the West Virginia Telecommunications Tax, then against the West Virginia 
Corporation Net Income Tax liability. Any portion of the credit then remaining may be carried over to the next 
years Telecommunications Tax liability and is applied before any other credits for that year. There is no provision 
for carry over to subsequent years for Corporation Net Income Tax.

In no event shall the total credit claimed exceed one hundred percent (100%) of the Certified revenue deficiency.

Instructions

Column 1 Enter the total amount of the revenue deficiency as certified by the Public Service Commission.

Column 2 Enter the amount claimed as a credit against your Telecommunications Tax liability.

Column 3 Subtract the amount in Column 2 from the amount in Column 1, and enter the difference.

Column 4 Enter the amount being used to offset your Corporation Net Income Tax liability.

Column 1, minus Columns 2 and 4, is the amount available to be carried over as a credit against 
Telecommunications Tax.

Please note that the total amount of all tax credits may not exceed the Corporation Net Income Tax liability.

Business                                                  Acct. ID
Name                                                      Number

Column 1                     Column 2                              Column 3                Column 4
Amount certified as revenue  Amount of deficiency claimed Amount available for             Amount claimed as 
deficiency by Public Service as Telecommunications Tax    Corporation Net Income Tax  Corporation Net Income Tax 
Commission                              Credit                      Credit                  Credit

Include the amount in Column 4 on the appropriate line on the tax form being filed. This schedule must 
be attached to your return.