Agricultural Best Management Practices Credit
This credit is available to individuals and corporations that are engaged in agricultural production for market and have a soil conservation plan in place to provide significant improvement to water quality in Virginia's streams, rivers, and bays. To be eligible for the credit, your plan must be certified in advance by your local soil and water conservation district.
The credit is 25% of the first $70,000 you spend for approved agricultural best management programs. The maximum credit is $17,500 or the taxpayers' tax liability, whichever is less. Unused credits may be carried forward for 5 years.
For individual taxpayers, effective Jan. 2011 the credit is refundable. Individuals who were approved for this credit prior to taxable year 2011, and who have carry-forward amounts from 2006-2010, should claim their carry forward as a refundable credit on the Schedule CR in taxable year 2011. A line has been added to the Schedule CR for taxable year 2011 only for this purpose. Further, legislation permits pass-through entities (PTEs) to designate a tax matters representative with Virginia Tax to handle any allocation issues related to credit.
Individual filers complete Schedule CR, Section 3, Part 3, and corporate filers complete Form 500CR, Section 1, Part 13 to claim this credit. Attach the certificate from the local soil and water conservation district from the locality in which the credit is claimed.
Reference: Virginia Code 58.1-339.3
Reference: Virginia Code 58.1-439.5
Coalfield Employment Enhancement Credit
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.
Motion Picture Production Tax Credit
Allows a refundable income tax credit to any motion picture film production company with qualifying expenses of at least $250,000 for taxable years beginning on or after Jan. 1, 2011. The CAP is $6.5 million per biennium per fiscal year, beginning in fiscal year 2015. Qualifying companies must submit an initial application 30 days prior to the start of production to the Virginia Film Office (VFO) and must have a memorandum of understanding. Additionally the production company must submit documentation to the VFO after completion of the production in order for the VFO to issue certification of the credit. This credit is administered by the Virginia Film Office. For additional information please contact Becky Beckstoffer at 800.854.6233.
The credit expires Dec. 31, 2018.
- Final Guidelines
- Public Document 10-281 provides complete guidelines and rules for claiming the credit.
- Reference: Virginia Code 58.1-439.12:03
Research and Development Tax Credit
Allows an income tax credit for individuals and businesses for qualified research and development expenses for taxable years beginning on or after Jan. 1, 2011, but before Jan. 1, 2022.
Effective for taxable years beginning on or after Jan. 1, 2016, the tax credit amounts are:
- 15% of the first $300,000 in Virginia qualified research and development expenses, or
- 20% of the first $300,000 of Virginia qualified research and development expenses if the research was conducted in conjunction with a Virginia public or private college or university, to the extent the expenses exceed a base amount.
There is a $7 million cap on the total amount of credits allowed in any fiscal year.
Virginia Tax shall require taxpayers applying for the credit to provide information including:
- The number of full-time employees employed by the taxpayer in the Commonwealth during the taxable year for which the credit is sought;
- The taxpayer's sector or sectors according to the 2012 edition of the North American Industry Classification System (NAICS) as published by the United States Census Bureau;
- A brief description of the area, discipline, or field of Virginia qualified research performed by the taxpayer;
- The total gross receipts or anticipated total gross receipts of the taxpayer for the taxable year for which the credit is sought;
- Whether the Virginia qualified research was conducted in conjunction with a Virginia public or private college or university.
Effective for tax year 2016, there are 2 options to calculate the requested credit amount:
- The Primary Credit Calculation Method – use this spreadsheet to compute the Virginia Base Amount
- The Alternative Simplified Method (new method for 2016)
Credit applications are due July 1. Businesses use Form RDC to apply. Submitting a late application will disqualify you for the credit. All applications must be sent to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
This credit requires certification from the Tax Credit Unit to be claimed on your tax return. A letter will be sent to certify the credit.
This credit may be allocated among owners in proportion to each owner's percentage of ownership or interest in the pass-through entity, or as the owners mutually agree, or as provided in the partnership agreement or other entity document using Form PTE within 30 days after the credit is granted but at least 90 days before filing an income tax return. Effective for tax year 2014, pass-through entities may elect to claim the entire granted amount at the entity level.
Any taxpayer who claims the tax credit for Virginia qualified research and development expenses pursuant to this section shall not use such expenses as the basis for claiming any other credit provided under the Code of Virginia. Additionally, the taxpayer will not be eligible if research is conducted in the Commonwealth on human cells or tissue derived from induced abortions or from stem cells obtained from human embryos. The foregoing provision shall not apply to research conducted using stem cells other than embryonic stem cells.
If the total qualified expenses are in excess of $5,000,000 you must apply for the Major Research and Development Tax Credit
Reference: Virginia Code 58.1-439.12:08