West Virginia Code 11-13R-10 – Failure to keep records of qualified research and development credit property
A taxpayer who does not keep the records required for identification of qualified research and development credit property, is subject to the following rules:
Terms Used In West Virginia Code 11-13R-10
- Qualified research and development credit property: means depreciable property purchased for the conduct of qualified research and development. See West Virginia Code 11-13R-3
- Research and development: means systematic scientific, engineering or technological study and investigation in a field of knowledge in the physical, computer or software sciences often involving the formulation of hypotheses and experimentation for the purpose of revealing new facts, theories or principles or increasing scientific knowledge which may reveal the basis for new or enhanced products, equipment or manufacturing processes. See West Virginia Code 11-13R-3
- Taxpayer: means any person subject to the tax imposed by article twenty-three or twenty-four of this chapter or both. See West Virginia Code 11-13R-3
(1) A taxpayer is treated as having disposed of, during the taxable year, any qualified research and development credit property which the taxpayer cannot establish was still on hand and used in qualified research and development activity at the end of that year.
(2) If a taxpayer cannot establish when qualified research and development credit property reported for purposes of claiming this credit returned during the taxable year was placed in service, the taxpayer is treated as having placed it in service in the most recent prior year in which similar property was placed in service, unless the taxpayer can establish that the property placed in service in the most recent year is still on hand and used in qualified research and development activity at the end of that year. In that event, the taxpayer will be treated as having placed the returned property in service in the next most recent year.