JavaScript must be enabled in order for you to fully utilize the Department of Taxation's website. However, it seems JavaScript is either disabled or not supported by your browser. Please enable JavaScript by changing your browser options and reload this page. Information on Javascript Enabling.

Guideline Development - Port Tax Credits

During the 2011 Session, the Virginia General Assembly passed legislation that created three port income tax credits.

House Bill 2385 and Senate Bill 1282 created a barge and rail tax credit equal to $25 per 20-foot equivalent unit (TEU) moved by barge or rail rather than by trucks or other motor vehicles on Virginia’s highways.
Senate Bill 1136 created an international trade facility tax credit, which certain taxpayers may claim for either capital investment in an international trade facility or increasing jobs related to an international trade facility.
House Bill 2531 and Senate Bill 1481 created a port volume increase tax credit, which taxpayers may claim if they qualify as a “major facility” or if they increase port cargo volume at Virginia port facilities by five percent above base year port cargo volume.

On April 17, 2012, the Department of Taxation published guidelines to carry out the provisions of these credits, including rules regarding the computation and carryover of credits, the establishment of criteria for qualifying taxpayers, the treatment of credits claimed by affiliated companies, and the application of any recapture provisions.

During the 2012 Session, the Virginia General Assembly passed legislation (House Bill 1183 and Senate Bill 578) that extended the sunset date of all three tax credits. Additionally, this legislation made the following changes:

The jobs portion of the International Trade Facility Tax Credit was increased from $3,000 per qualified full-time employee to $3,500 per qualified full-time employee.
The Barge and Rail Usage Tax Credit was extended so that it may be claimed for qualified shipments of noncontainerized cargo, in an amount equal to $25 per 16 tons of noncontainerized cargo moved by barge or rail rather than by trucks or other motor vehicles on Virginia's highways.

Accordingly, the Department of Taxation has published updated guidelines for the Barge and Rail Usage Tax Credit and the International Trade Facility Tax Credit.

During the 2013 Session, the Virginia General Assembly passed legislation (House Bill 1824) that:

Changes which taxpayers may claim Port Volume Increase Tax Credits from taxpayers engaged in the manufacturing of goods or the distribution of manufactured goods, to taxpayers that are agricultural entities, manufacturing-related entities, or mineral and gas entities.
Sets the base year for manufacturing-related entities as the period from January 1, 2010, through December 31, 2010.
Sets the base year for agricultural entities and mineral and gas entities as the period from January 1, 2012, through December 31, 2012.

Accordingly, the Department of Taxation is currently developing updated guidelines for the Port Volume Increase Tax Credit.