AG-1: Environmental Agricultural Equipment Tax Credit (Revision 2015-09)
West Virginia · WV Tax Division · Used for tax years 2026
Form WV/AG-1 calculates the West Virginia Environmental Agricultural Equipment Tax Credit. It reports eligible equipment purchases, available credit, credit applied against tax liability, and unused credit available to carry forward.
Who files this form
WV/AG-1 is used to claim the West Virginia Environmental Agricultural Equipment Tax Credit. It has separate sections for:
- Corporations, in Part 2.
- Sole proprietors, in Part 3.
- Partners, shareholders and members of pass-through entities, in Part 4.
The listed pass-through entity types are S corporations, partnerships and limited liability companies. The signer must certify that all items forming the basis of the credit are qualified agricultural equipment.
What you'll need
Have the information requested on the form ready:
- Business name, West Virginia tax ID number and tax period.
- Each eligible purchase’s description, cost and date placed into use or service.
- Unused credit from each of the five preceding purchase years and amounts used this year.
- West Virginia tax liability, agricultural income, total income and other tax credits claimed, as requested in your section.
Partners, shareholders and members also need the pass-through entity’s name, West Virginia tax ID number and entity type, plus ownership percentage, distributive income information, and federal adjusted gross income or federal taxable income, as applicable.
Common mistakes
- Enter income ratios as decimals. Where the form says “Not more than 1.0,” do not enter a higher ratio. Part 4 also asks for your ownership percentage as a decimal.
- Enter 0 where the form directs you to do so when a calculated amount is zero or less.
- Do not carry an unused balance from the fifth preceding purchase year into the next year. The carryover tables mark that balance as “Forfeited.”
- Complete the certification and signature section. It certifies, under penalties of perjury, that the information and attachments are true, complete and correct, and that the equipment underlying the credit is qualified agricultural equipment.
Questions people ask
How is the current-year available credit calculated?
The form calculates it as 25% of total eligible purchases from Part 1. Part 4 also calculates an owner’s share by multiplying that credit by the ownership percentage.
Can I apply the entire available credit this year?
Not necessarily. The form limits the credit applied using adjusted eligible tax liability and a $2,500 maximum. Credit carried forward and applied this year reduces the $2,500 available for current-year credit.
Can unused credit carry forward?
The form includes unused credit from the five preceding purchase years and calculates balances available to carry into the next year. Any remaining balance from the fifth preceding year is marked as forfeited.
What must I enter for each eligible purchase?
Part 1 asks for the date placed into use or service, a description and the cost. Add the costs to find total eligible purchases for the taxable year.