WEST VIRGINIA CODE
WVC 5 E- 1 - 4
As used in this article, the following terms have the meanings
ascribed to them in this section, unless the context in which the
term is used clearly requires another meaning or a specific
different definition is provided:
(a) "Authority" means the West Virginia economic development
authority, provided for in article fifteen, chapter thirty-one of
(b) "Capital base" means equity capital or net worth.
(c) "Certified West Virginia capital company" means:
(1) A West Virginia business development corporation created
pursuant to article fourteen, chapter thirty-one of this code; or
(2) A profit or nonprofit entity organized and existing under
the laws of this state, created for the purpose of making venture
or risk capital available to qualified investments that has been
certified by the authority.
(d) "Qualified investment" means a debt or equity financing of
a West Virginia business, but only if the business is engaged in
one or more of the following activities: Manufacturing;
agricultural production or processing; forestry production or
processing; mineral production or processing, except for
conventional oil and gas exploration; service industry;
transportation; research and development of products or processes
associated with any of the activities previously enumerated above;
tourism; computer software development companies engaged in the creation of computer software; and wholesale or retail distribution
activities within the state. The investment by a West Virginia
capital company in purchases of property to be leased by it, as
lessor, through a capital lease to a West Virginia business lessee
engaged in one of the above enumerated activities is a qualified
(e) "Qualified West Virginia capital company" means a West
Virginia capital company that has been designated by the authority
as a qualified capital company under the provisions of section six
of this article.
(f) "Small business investment company" means a small business
investment company licensed by the United States small business
investment administration under the federal small business
investment act of 1958, 15 U.S.C. §661, et seq., as amended.
(g) "State" means the state of West Virginia.
(h) "Capital lease" means a lease meeting one or more of the
(1) The lease transfers ownership of the property to the
lessee at the end of the lease term by the lessee's exercise of a
purchase option which is de minimis in amount; or
(2) The lease term is equal to seventy-five percent or more of
the estimated economic life of the leased property. However, if
the beginning of the lease term falls within the last twenty-five
percent of the total estimated economic life of the leased
property, including earlier years of use, this criterion shall not be used; or
(3) Under generally accepted accounting principles, the lessee
cannot treat payments to the capital company as payments under an
operating lease; or
(4) For federal income tax purposes, the parties are required
to treat payments as amortization of principal and interest.
(i) "Economic development and technology advancement center"
or "center" means an economic development and technology
advancement center organized and operating under the laws of this
state which has been designated by the authority as a qualified
economic development and technology advancement center under the
provisions of article twelve-a, chapter eighteen-b of this code.
Note: WV Code updated with legislation passed through the 2015 Regular Session
The WV Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.