Tax Type
Corporation Income Tax
Description
Worker Retraining Tax Credit
Topic
Credits
Date Issued
04-18-2002
April 18, 2002
Re: Ruling Request: Corporate Income Tax
Dear *****:
This will respond to your letter in which you request a ruling concerning the Worker Retraining Tax Credit (the "credit"). I apologize for the delay in the department's response.
FACTS
During 1999, ***** (the "Taxpayer") incurred tuition reimbursement costs for employees enrolled at a local community college. In May 2000, the Taxpayer learned that it may be eligible for the credit for its employees' approved community college courses.
Pursuant to Virginia Tax Bulletin ("VTB") 99-4 (4/5/99), taxpayers that qualify for the credit and use the 1999 calendar year as their taxable year were instructed to file an application requesting the credit no later than April 1, 2000. You are requesting that the Taxpayer be permitted to apply for the potential credits earned during its 1999 taxable year even though an application was not filed by the deadline established in VTB 99-4.
RULING
Under Code of Virginia § 58.1-439.6(B), the total amount of credits that can be granted by the department for each fiscal year is limited to $2,500,000. The application deadline was established to insure that the statutory cap is not exceeded. Approving credits for late applications in a subsequent fiscal year could limit the amount of credits available to taxpayers that had timely filed in accordance with the prescribed procedures.
VTB 99-4 sets forth the application procedures almost a year before the deadline for taxpayers filing returns for the taxable year ended December 31, 1999. The Taxpayer did not file its application by the established deadline. While I appreciate the Taxpayer's situation, I must deny your request.
Copies of the Code of Virginia and public documents cited are included for reference purposes. These and other reference documents are also available online in the Tax Policy Library section of the department's web site, located at www.tax.state.va.us.
If you have any questions with respect to this ruling, please contact *****, Office of Policy and Administration, Appeals and Rulings, at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
AR/32023O
Rulings of the Tax Commissioner