SAAM-1: Tax Credit for Federal Excise Tax on Small Arms and Ammunition Manufacturers (Revision 2021-10)
West Virginia · WV Tax Division · Used for tax years 2026
West Virginia Schedule SAAM-1 calculates the tax credit for federal excise tax imposed on small arms and ammunition manufacturers. It reports qualified investments, federal excise tax paid, credits claimed against corporation net income or personal income tax, and credit carryove
Who files this form
Schedule SAAM-1 is used to claim the West Virginia tax credit for federal excise tax imposed on small arms and ammunition manufacturers. It includes calculations for corporation net income tax credits and personal income tax credits.
The form bases the credit on qualified investment and federal excise tax paid during the tax year that is attributable to that investment.
What you'll need
- Federal excise tax returns: Copies of federal firearms and ammunition quarterly excise tax returns are required.
- Itemized investment listing: Required if it was not submitted with application SAAM-A. List each item's name or description, purpose, date acquired or placed in service, useful life, and net cost. Use additional sheets if needed.
- Business identification: Have the FEIN, West Virginia tax ID, tax period beginning and ending dates, business name, and taxpayer name.
- Investment and credit information: Have current-year investment costs, prior-year qualified investments and adjustments, and prior-period credit amounts for the carryover recap.
- Income and wage information: The calculations call for taxable income, wages attributable to the investment, all West Virginia wages, and applicable tax amounts. Personal income taxpayers also need their ownership percentage and income information.
Common mistakes
- Leaving out required attachments: Include copies of the federal firearms and ammunition quarterly excise tax returns. Include the itemized investment listing if it was not submitted with SAAM-A.
- Overlooking early disposals: The form warns that adjustments, including disposing of property or machinery before its originally stated useful life, may result in recapture of credit previously claimed.
- Using the wrong income calculation on line 23: IT-140 filers divide line 22 by West Virginia adjusted gross income. Other filers must calculate an equivalent West Virginia gross income using the instructions at the end of the form.
Questions people ask
How much qualified investment is needed to earn a credit?
If total qualified investment for the 10-year period on line 6 is at least $2 million, line 8 uses the federal excise tax amount from line 7. If line 6 is less than $2 million, enter zero on line 8.
How does an investment's useful life affect its allowable cost?
The form applies 33⅓% of net cost for a useful life of at least 4 but less than 6 years, 66⅔% for at least 6 but less than 8 years, and 100% for 8 years or more.
Is all of the current year's earned credit available that year?
Line 9 makes 10% of the credit earned on line 8 available for the current year. The form then adds annual credits earned in prior periods and unused credit carried forward. Line 13 limits the amount available for use or distribution to the lower of that total or the federal excise tax amount on line 7. Section D applies additional tax-offset limits.
Where does the form track unused credit?
Line 28 calculates remaining credit to carry forward by subtracting total credit used on line 27 from line 13. Section E provides a recap of annual credits, excess credit from prior periods, excess credit used this year, and remaining excess credit.