The following credits have expired or been repealed; however, taxpayers with carryover amounts may continue to claim the credits until their eligible amounts are exhausted or as otherwise provided by law. See the individual credit instructions for more information.
Clean-Fuel Vehicle and Advanced Cellulosic Biofuels Job Creation Tax Credit
This credit expired on December 31, 2014.
The Clean-Fuel Vehicle and Advanced Cellulosic Biofuels Job Creation Tax Credit allows a corporation to claim an income tax credit equal to $700 for each job it creates that is related to the manufacture and production of clean fuel and advanced cellulosic biofuel vehicles. The credit is allowed in the taxable year in which the job is created and in each of the two succeeding years.
The credit can be claimed in Part XI of the corporate Schedule 500CR. This credit is not available to individuals.
Reference: Virginia Code 58.1-439.1
Coalfield Employment Enhancement Credit
This credit expired Jan. 1, 2017
This credit benefits individuals, estates, trusts and corporations who have an economic ownership interest in coal mined in Virginia. The credit may be earned for taxable years beginning on or after Jan. 1, 1996, but before Jan. 1, 2008. This credit may be claimed on your return in taxable years beginning on or after Jan. 1, 1999 through Jan. 1, 2017.
Compute your allowable credit on Form 306.
All filers must complete Form 306 B. Individual and fiduciary filers complete Schedule CR, Section 3, Part 1, and corporate filers complete Form 500CR, Section 3, Part 1 to claim this credit. Attach Form 306 for both the earned year (a copy of the original) and the claimed year (current year) with the completed schedules where appropriate. Follow instructions on Form 306 for "What to Attach."
Reference: Virginia Code 58.1 - 439.2.
Day Care Facility Investment Credit
This credit expired on December 31, 2013.
For taxable years beginning on and after January 1, 1997, an employer may be eligible for a credit for expenditures incurred to establish a day-care facility for the children of employees. The maximum credit is $25,000. Virginia Tax may not approve more than $100,000 in total credits in any fiscal year.
To be eligible for the credit, the employer's day care facility must meet the following criteria: (1) the facility shall be operated under a license issued by the Virginia Department of Social Services; (2) the building permit application for the facility must be submitted after July 1, 1996; (3) the facility must be used primarily by the children of the taxpayer's employees and; (4) the Tax Commissioner must approve the credit application before a credit may be claimed. Any unused credit may be carried forward for 3 taxable years.
To apply for this credit, submit a letter of application that specifies the employer's name and location of the facility. You must also provide certification of items (1) and (2) above. Send your application to: Virginia Department of Taxation, Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715.
Individual filers complete Schedule CR, Part XII, and corporate filers complete Form 500CR, Part XIV to claim this credit.
Reference: Virginia Code 58.1-439.4.
Credit for Purchase of Long-Term Care Insurance
This credit expired on December 31, 2013.
Individuals may claim a credit equal to 15% of the amount paid by the individual during the taxable year in long-term care insurance premiums for long-term care insurance coverage for himself, but the total credits for any policy may not exceed 15% of the amount of premiums paid for the first 12 months of coverage. Any unused credit may be carried forward for the next 5 taxable years. In order to determine the amount that may be used as a basis for this credit, the individual must subtract any amount actually included as a deduction on Schedule A of the individual's federal income tax return. In addition, the individual may not claim this credit to the extent the premiums have been used to claim the Virginia deduction for long-term healthcare premiums. It may be possible, however, for an individual to claim this credit and the Virginia deduction in the same year.
Example: This credit is based on the amount paid during the taxable year, even if the months covered by the policy extend into the following taxable year. For example, if an individual purchased a policy on July 1 and paid for 12 months, he would base his credit on the entire payment, even though only 6 months of the coverage period would fall in the taxable year in which he claimed the credit. If however, the individual made payments on a monthly basis, he would claim a credit in the current taxable year for 6 months of premiums and a credit in the second year for the next 6 months of premiums in order to reach the allowed total of 12 months. In that case, the individual could also claim a deduction in the 2nd year for the 6 months of premiums that were not used as a basis for the credit.
Reference: Virginia Code 58.1-339.11 (Repealed)
Low Income Housing Credit
This credit expired on June 30, 2010.
If you are a Virginia taxpayer and you claimed a low-income housing tax credit on your federal income tax return for housing units placed in service in Virginia on or after January 1, 1998, you may qualify to claim the state low-income housing tax credit.
The Virginia credit is a percentage of the federal credit. If in subsequent years you are subject to the federal recapture provisions for this credit, you will also be subject to a recapture amount on your Virginia return.
You must receive certification from the Virginia Department of Housing and Community Development before claiming this credit on your tax return. The allowable credit may not exceed your tax liability. For additional information contact the Department of Housing and Community Development at 804.371.7117.
Individual filers complete Schedule CR, Part XIII, and business filers complete 500CR Part XV to claim the credit.
Reference: Virginia Code 58.1- 336 (Repealed).
Rent Reduction Program Credit
This credit expired on December 31, 2010.
Owners of rental property who provide a rent reduction to low income tenants who: 1) are over age 62; 2) have a mental disability, or; 3) have been homeless (those in domestic violence and homeless shelters) at any time within the previous 12 months preceding the lease term are eligible to apply for a state income tax credit.
The reduced rent must be at least 15% below the market rate. After January 1, 2000, no credit may be claimed unless credit was validly claimed on the unit for all or part of the month of December 1999. The credit is equal to 50% of the total rent reductions given to eligible tenants during the taxable year. The total amount of credit a taxpayer may claim per taxable year may not exceed their tax liability. Unused credits may be carried forward for 5 years. Total credits approved in a fiscal year cannot exceed $50,000.
For more information and to apply for the credit, contact the Virginia Housing Development Authority.
Individual filers complete Schedule CR, Part VII, and corporate filers complete Form 500CR Part VIII to claim this credit.
Reference: Virginia Code 58.1 -339.9.