Corporate Income Tax

Legislative Changes

Beginning on January 1, 2022, a number of legislative changes to the West Virginia Corporation Net Income Tax became effective.

The apportionment formula for corporations doing business in more than one state has changed. For tax years beginning on or after January 1, 2022, West Virginia uses a single sales factor formula. Under this formula, the numerator includes sales occurring in West Virginia and the denominator includes sales occurring everywhere. Prior to tax year 2022, West Virginia apportioned the income of multi-state corporations through use of a four-factor formula consisting of a property factor, a payroll factor, and a double weighted sales factor.

Beginning on January 1, 2022, sales on which a corporation does not pay tax in any state should not be included in the numerator but remain in the denominator of the sales factor. Prior to tax year 2022, sales on which a corporation does not pay tax in any state were not included in either the numerator and denominator of the sales factor.

West Virginia has adopted market-based sourcing for services and certain intangible property starting on January 1, 2022. Under a “market-based sourcing” rule, sales of services go into the numerator of the sales factor based on whether the service was delivered to a customer in this state. Intangible property that is rented or licensed, or a contract right or government license, should also be included in the numerator of the sales factor if they were used in this state.

Corporation Net Income Tax

• Tax Forms, Schedules and Instructions (on this page).

If your business is incorporated in West Virginia or does business or participates in certain other activities in West Virginia, you may have to file an annual West Virginia State Corporation tax return.

The Corporation Net Income Tax is a tax on the West Virginia taxable income of every domestic or foreign corporation which enjoys the benefits and protections of the government and laws in the State of West Virginia or derives income from property, activity or other sources in West Virginia.

Filing Status

Separate Entity Based

Use this method if you are filing a separate return and you are not engaged in a unitary business with one of more other corporations.

• Approved vendors for separate-entity electronic filing are listed here.

Combined Unitary Based

Corporations that are members of the same unitary business group must file a combined report including all required information of every business engaging in the unitary business with the corporation.

This report must be filed with each member’s separate return unless the group elects to designate a corporation as surety and file a group combined return.

• Approved vendors for combined-entity electronic filing are listed here.

Filing Methods

Separate Entity Based: Corporation Wholly in West Virginia

When filing a separate return as a Corporation Wholly in West Virginia, you may/will need to complete certain forms and schedules:

• CIT-120 pages 1 and 2
• CIT-120TC Summary of Tax Credits
• K-1 Schedule of WV Partner/Shareholder/Member/Beneficiary Income, Loss, Modification, Credits, and Withholding
• K-1C Schedule of WV Partner/Shareholder/Member/Beneficiary Information for Corporations Subject to Corporate Income Tax
• NRW-2 Statement of West Virginia Income Tax Withheld for Nonresident Individual or Organization

• Schedule 1 Separate Entity Filer West Virginia Corporations Wholly in West Virginia
• Schedule B Adjustments to Federal Taxable Income
• Schedule B-1 Allowance for Governmental Obligations / Obligations Secured by Residential Property (§11-24-6(F))
• Schedule C Schedule of Tax Payments (This document includes Schedule D)
• Schedule D Schedule of Reportable Entities (This documnet includes Schedule C)
• Schedule NOL Net Operating Loss Carry-forward Calculation (§11-24-6(D))

Separate Entity Based: Corporation With Multistate Activity

When filing a separate return as a Corporation With Multistate Activity, you may/will need to complete the forms and schedules above, except Schedule 1. Complete Schedule 2 and CIT-120APT.

• Schedule 2 Separate Entity Filer With Multi-state Activity
• CIT-120APT Allocation and Apportionment for Multi-state Businesses

Combined Reporting Based §11-24-13A (j)

For tax years beginning on or after January 1, 2009, any taxpayer engaged in a unitary business with one or more other corporations shall file a combined report which includes the income, allocation, and apportionment of income of all corporations that are members of the unitary business.

Worldwide Unitary Combined reporting

You may choose to file Worldwide Unitary Combined Reporting, to do so, please fill out and sign West Virginia Form CIT-120OPT and attach to your return.

This election is binding for 10 years unless a written request to withdraw for reasonable cause has been sent to commissioner and granted.

Water’s Edge Reporting

Water’s Edge Reporting is mandated, absent an affirmative election to report based upon a worldwide unitary combined report.

Separate Combined Reporting

Use this method if you are filing a combined report but a separate return. Forms and schedules you may/will need to complete are the same as required for Separate Entity Filers with Multistate Activity.

You must use the correct UB-CR for the year which you are filing. To file a prior version, please see Prior Year Forms

Group Combined Reporting

Corporations use this method if they are members of the same unitary business group and elect to designate surety. Taxpayers must designate a surety FEIN in the space provided.

Forms and Schedules you may/will need to complete a group combined return are:

• CIT-120 pages 1 and 2
• Schedule C Schedule of Tax Payments (This document includes Schedule D)
• Schedule D Schedule of Reportable Entities (This documnet includes Schedule C)
• Schedule NOL Net Operating Loss Carry-forward Calculation (§11-24-6(D))
• CIT-120TC Summary of Tax Credits

• K-1 Schedule of WV Partner/Shareholder/Member/Beneficiary Income, Loss, Modification, Credits, and Withholding
• K-1C Schedule of WV Partner/Shareholder/Member/Beneficiary Information for Corporations Subject to Corporate Income Tax
• NRW-2 Statement of West Virginia Income Tax Withheld for Nonresident Individual or Organization
• Schedule UB List of Members in Unitary Combined Group

Estimated Taxes

Estimated Corporation Net Income Tax payments are required for any Corporation which can reasonably expect its West Virginia taxable income to be in excess of $10,000 (which equals a tax liability after tax credits in excess of $650.00) and are due in four equal installments on the 15th day of the fourth, sixth, ninth, and twelfth months of the tax year.

Filing Your Business Returns

Remember: If you file as Combined Separate or Combined Group, you must:

1. File your West Virginia CIT-120 electronically.
2. Use the same taxable year and method of accounting as you use for Federal Tax Purposes.
3. Attach to your West Virginia Corporate return a copy of pages 1 through 5 of your signed Federal Return as filed with the Internal Revenue Service.

If you attach a Proforma Federal Income Tax Return, the following consolidated return data is also required:

• A copy of pages 1 through 5 of the consolidated return, plus
• Supporting schedules showing the consolidation of the income statement, balance sheet, eliminations and adjustments;
• A copy of Federal Form 851;
• A signed statement explaining the differences, if any, between the income statement and balance sheet reported for Federal Consolidated filing.
• Federal Schedule M-3, when applicable.

Extension of Time to File

An extension of time to file a Federal Return is automatically accepted by West Virginia as an extension of time to file the West Virginia return.

A copy of Federal extension form (Federal Form 7004) must be attached to the West Virginia return when filed and the extended due date must be entered on top of the first page of the West Virginia State Tax Return.

A state extension of time to file may be obtained, even if a federal extension has not been requested, provided a written request is made to the West Virginia Tax Division prior to the due date of the return.

An extension of time to file does not extend the time for payment of tax due. If you have an extension of time to file, payment of any tax due may be made by filing a tentative return. (See the instructions for Form CIT-120EXT).

To avoid interest and penalties, payment must be received on or before the original due date of return.

Late Filing

Additions to tax are imposed for failure to file return on or before the due date (determined with regard to an extension to file).

On any amount of tax shown to be on the return, the additions to tax for late filing is five percent (.05) per month or any part of a month, not to exceed twenty five percent (.25).

Amending State Returns

Any corporations whose reported income or deductions are changed or corrected by the Internal Revenue Service are required to report the change or correction to the West Virginia Tax Division.

This report must be made within 90 days of the final determination by filing an amended return and attaching a copy of the revenue agent’s report detailing such adjustments.

Tax Forms and Instructions

• CIT-120 Corporation Net Income Tax Return Instructions

• CIT-120OPT Election to Report Based on Worldwide Unitary Combined Basis

• Schedule UB List of Members in Unitary Combined Group

Credit Forms and Schedules

• AFTC-1 Schedule AFTC-1 Alternative Fuel Tax Credit for Periods Beginning On or After January 1, 2015 Instructions

• AG-1 Environmental Agricultural Equipment Tax Credit Instructions

• ATTC-1 Schedule ATTC-1 Apprenticeship Training Tax Credits (For Periods After January 1, 2015)

• CIP West Virginia Credit for Capital Investment in Child-Care Property

• Sale/Transfer/Assignment of Credit for Capital Investment in Child-Care Property or Operating Costs of Child-Care Facility

CIT-139 Five-Year Corporation Application for Refund from Carryback of Net Operating Loss. This Schedule is for the 2018, 2019 and 2020 tax periods and can be found in MyTaxes. The CIT-139 must be completed and submitted through the MyTaxes site. Taxpayers that file a combined return can not use the CIT-139; they need to file amended returns. Instructions

In accordance with the Tax Cuts and Job Act (TCJA) West Virginia has eliminated the NOL carryback beginning with tax year 2021 and future years.

• DNG-1 Downstream Natural Gas Manufacturing Investment Tax Credit

• DNG-A Application for Downstream Natural Gas Manufacturing Investment Tax Credit

• DSV-1 Tax Credit for Donation or Sale of Vehicle Through a Qualified Charitable Organization That Provides Affordable Transportation to Low-Income Workers. The definition of what constitutes a "Qualified Charitable Organization" and other credit information can be found in the rule 110-13FF.

• EOTC-1 Economic Opportunity Tax Credit (For periods AFTER January 1, 2015) Instructions

• EOTC-A Application for West Virginia Economic Opportunity Tax Credit. For Investments Placed Into Service On or After January 1, 2003.

• FIIA-TCS Film Industry Investment Tax Credit for Periods On or After January 1, 2023

• IMSTTC1 Innovative Mine Safety Technology Tax Credit (for periods after January 1, 2020) Instructions

• Schedule J Military Incentives Credit

• Schedule JSP-1 West Virginia Jumpstart Savings Program Credit for Employer Contribution

• Schedule L Electric, Natural Gas, Sewer, and Water Utilities Rate Reduction Credit

• MITC-1 Credit for Manufacturing Investment (for periods AFTER January 1, 2021) Instructions

• MITC-A Application for West Virginia Manufacturing Investment Tax Credit for Investments Placed Into Service On or After January 1, 2003.

• MPTAC-1 Manufacturing Property Tax Adjustment Credit (For periods after January 1, 2015)

• NGL-1 Natural Gas Liquids Property Tax Adjustment Credit for Eligible Businesses Engaged in the Storage or Transportation of Natural Gas Liquids

• NIPA-2 Neighborhood Investment Program Credit Schedule (For periods after January 1, 2015) Instructions

• OCF West Virginia Credit for Operating Costs of Child-Care Facility

• Sale/Transfer/Assignment of Credit for Capital Investment in Child-Care Property or Operating Costs of Child-Care Facility

• PCM-1 Post-Coal Mine Site Business Credit for Corporate and Pass Through Entities

• PCM-A Application for Post-Coal Mine Site Business Credit

• PVA-1 Build West Virginia Property Value Adjustment Tax Credit

• RBIC Historic Rehabilitated Buildings Investment Credit (For Investments Made After June 6, 1990)

• RBIC-A Schedule RBIC-A Residential Historic Rehabilitated Buildings Investment Credit, For Investments Made After December 31, 1999.

• SAAM-1 West Virginia Tax Credit for Federal Excise Tax Imposed Upon Small Arms and Ammunition Manufacturers (For Periods On or After July 1, 2021)

• SAAM-A Application for West Virginia Tax Credit for Federal Excise Tax Imposed Upon Small Arms and Ammunition Manufacturers (For Periods On or After July 1, 2021) Instructions

Payments

• BAR-0 Business Activity Report

• CIT-120ES Estimated Corporate Net Income Tax Payment

• CIT-120EXT Extension Corporation Net Income Tax Return

• CIT-120TC Summary of Tax Credits

• Schedule NOL Net Operating Loss Carry-forward Calculation (§11-24-6 (D))

• WV-CITV Corporation Net Income Tax Electronic Payment Voucher and Instructions

Mailing Addresses

Please mail your completed Corporate Net Income Tax Return and supporting documents to:

West Virginia Tax Division
Tax Account Administration Division
PO Box 1202
Charleston, WV 25324-1202

For tax information or assistance, call (304)558-3333 or 1-800-982-8297, Monday through Friday, 8:00 a.m. - 5:00 p.m.

TaxHelp@WV.Gov.

Assistance

West Virginia Tax Division
Taxpayer Services Division
PO Box 3784
Charleston, WV 25337-3784

(304) 558-3333
1-800-982-8297 toll free within West Virginia and area code 614
1-800-282-9833 TDD for the hearing impaired

TaxHelp@WV.Gov