The WV First Small Business Growth Act establishes a new program designed to promote small business growth in West Virginia through capital investments. This program, administered by the Department of Commerce, includes definitions for key terms such as "capital investment," "eligible business," and "growth fund," and outlines the application, certification, and tax credit issuance processes. Growth investors can receive tax credits against their state tax liability based on their investments in certified growth funds, with specific percentages applicable over designated credit allowance dates. The Act also includes provisions for recapturing tax credits if growth funds do not meet investment requirements or violate program regulations, and it prohibits eligible businesses from owning or investing in growth funds to maintain program integrity.

The bill amends the reporting requirements for growth funds, mandating that they submit an annual report to the department by June 30 each year during the compliance period. This report must document that 100 percent of the purchase price is invested in qualified investments, particularly after the third anniversary of the initial credit allowance date, and must include details such as the names and locations of eligible businesses receiving investments, bank statements, job creation and retention statistics, and average salaries. Additionally, growth funds may apply to exit the program after the sixth anniversary of the credit allowance date, provided there are no recaptured credits or unresolved notices of recapture, and the department must respond to exit applications within 15 days, providing reasons for any denials.

Statutes affected:
Introduced Version: 5B-12-1, 5B-12-2, 5B-12-3, 5B-12-4, 5B-12-5, 5B-12-6, 5B-12-7
Committee Substitute: 5B-12-1, 5B-12-2, 5B-12-3, 5B-12-4, 5B-12-5, 5B-12-6, 5B-12-7, 5B-12-8
Enrolled Committee Substitute: 5B-12-1, 5B-12-2, 5B-12-3, 5B-12-4, 5B-12-5, 5B-12-6, 5B-12-7