The refundable exemption from the variable rate component for railroad diesel locomotives

3.1. Beginning January 1, 2018, all gallons of motor fuel sold for use or consumed in the operation of railroad diesel locomotives in West Virginia are subject to a refundable exemption from the variable rate component of the motor fuel excise tax subject to the following:

3.1.a. Only the variable rate tax paid on diesel fuel consumed in West Virginia in the operation of a locomotive is subject to the refundable exemption;

3.1.b. The aggregate amount of the refundable exemption available to all taxpayers in a calendar year is limited to $4,300,000;
3.1.c. If the total amount claimed by all railroad diesel locomotive operators is greater than $4,300,000 in a calendar year, then the amount to be refunded is distributed proportionately to the taxpayers as set forth in this rule; and

3.1.d. The credit allowable under W. Va. Code §11-15A-10a is only allowable to the extent the credit exceeds the allowable refundable exemption amount authorized under this rule for the calendar year.

3.2. The exemption is refundable.

3.2.a. The variable rate component of the motor fuel tax must first be paid as specified in this rule as a prerequisite for applying for the refund. See W. Va. Code §11-14C-9(d).

3.2.b. A taxpayer will receive the portion of the refundable exemption based only on the amount of tax actually paid on the variable component of the motor fuel excise tax.