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Sch I

Rev. 0 1/06

SCHEDULE I

INDUSTRIAL EXPANSION OR REVITALIZATION CREDIT – OTHER THAN ELECTRIC POWER PRODUCERS

For Qualified Investment Placed Service on or Before December 31, 2002

The purpose of the Industrial Expansion or Revitalization Credit is to encourage the establishment of new industry, the expansion of existing industry,

and the growth and revitalization of industrial facilities in West Virginia.

NOTE:

Entitlement to the Industrial Expansion or Revitalization Credit no longer may be earned for investment made on or after January 1,

2003. If you are a qualified manufacturer, new investment made on or after January 1, 2003 may qualify under the Manufacturing

investment Tax Credit program.

ELIGIBLE TAXPAYERS

Industrial Expansion or Revitalization Credit is only available to electric power producers (electric power producers should use Schedule I-EPP) and the

following taxpayers, to the extent that the qualified investment was placed in use or service prior to January 1, 2003:

manufacturers who produce their own goods; (food processors are not classified as manufacturers)

service manufacturers who produce manufactured goods which they do not own.

AMOUNT OF CREDIT

The tax credit shall be limited to 10% (1% for each of ten consecutive years) of the total qualified investment for industrial expansion or revitalization.

The amount of credit employed in any given year shall not reduce the taxpayer’s Business Franchise Tax (§11-23) and Severance Tax (§11-13A) liability

by more than 50%. Any unused credit for a particular year is forfeited.

PROPERTY PURCHASED FOR INDUSTRIAL EXPANSION OR REVITALIZATION

Property purchased for industrial expansion or revitalization is defined as all real property and improvements thereto and new tangible personal property,

but only if such property is constructed or purchased for use as a component part of a new, expanded, or ongoing industrial facility of an industrial

taxpayer. Tangible personal property is included within the above definition only if depreciation or amortization, in lieu of depreciation, is allowable in

determining federal personal or corporation net income tax. The property must have a useful life of four years or more. Useful life is defined as the

period over which the asset may reasonably be expected to be useful in the taxpayer’s business.

LEASING OF PROPERTY

The leasing of property for a term of ten years or longer, if used as a component part of a new, expanded, or ongoing industrial facility is considered

property purchased for industrial expansion or revitalization. Lease renewals, subleases or assignments shall not be considered, however.

INELIGIBLE PROPERTY

Property purchased for industrial expansion or revitalization does not include the following:

Motor vehicles licensed by the Department of Motor Vehicles;

Airplanes;

Off-premise transportation equipment;

Property located or primarily used outside of West Virginia;

Property acquired incident to the purchase of the stock or assets of an industrial taxpayer which was or had been used by the seller in his

industrial business in West Virginia, or which has been previously designated property purchased for industrial expansion or property

purchased for industrial revitalization or property purchased for eligible research and development projects and used to qualify for the

credit for industrial expansion. Property which has been previously designated as qualified property placed in service for the Business

Investment and Jobs Expansion Credit is likewise disqualified.

Property purchased for industrial revitalization prior to July 1, 1981.

Property not directly attributable to the industrial expansion.

NET COST

Net Cost is the net monetary consideration provided for acquisition of title and/or ownership to the subject property. Net cost shall not include the value

of any property given in trade or exchange for such new property purchased for industrial expansion.