§ 58.1-2510. Tax credit for retaliatory costs paid to other states.
A. For license years beginning on and after July 1, 1998, every qualifiedcompany shall be allowed a credit against the tax imposed by § 58.1-2501 inan amount equal to the retaliatory costs incurred during the correspondingtaxable year as a result of the difference between other states' lowerpremium tax rates and other costs and the tax rates and costs imposed by theCommonwealth of Virginia.
B. As used in this section:
"Affiliate" of a specific company or a company "affiliated" with aspecific company means a company that directly or indirectly through one ormore intermediaries controls, is controlled by, or is under common controlwith the company specified. A company shall be deemed to control, becontrolled by, or be under common control with the company specified if theirrelationship to each other is such that one company owns at least eightypercent of the voting power of the other company or at least eighty percentof the voting power of all companies is owned by the same interests.
"Affiliated insurance group" means two or more affiliated companies (i) atleast one of which is a domestic insurance company and (ii) each of which isin the business of insurance, leasing, financial services, or providingadministrative or other support for other members of the group, or is aholding company for the other members of the group.
"Domestic insurance company" means any insurance company incorporated ororganized under the laws of this Commonwealth and headquartered within thisCommonwealth.
"Permanent full-time position" means a position of an indefinite durationin this Commonwealth requiring a minimum of thirty-five hours of anemployee's time a week for the entire normal year of the company'soperations, which "normal year" shall consist of at least forty-eightweeks. Seasonal or temporary positions and positions in building and groundsmaintenance, security, and other such positions which are ancillary to theprincipal business of the employer shall not qualify as new, permanentfull-time positions.
"Qualified company" means a domestic insurance company that (i) has made aqualified investment in this Commonwealth and (ii) for license yearsbeginning on or after July 1, 1998, maintained the employment level requiredfor a qualified investment, such level to be measured as of December 31 ofthe corresponding taxable year. The foregoing requirements may be satisfiedby either the domestic insurance company or collectively by all the membersof the affiliated insurance group of which the qualified company is a member.
"Qualified full-time employee" means an employee filling a permanentfull-time position with a domestic insurance company or member of anaffiliated insurance group.
"Qualified investment" means an investment in this Commonwealth by adomestic insurance company or any one or more members of an affiliatedinsurance group that results in (i) an increase as of December 31, 1997, ofat least 325 qualified full-time employees above such company's or group'stotal combined employment level in this Commonwealth on December 31, 1996, or(ii) during any taxable year beginning on or after January 1, 2001, suchcompany or group having more than 100 qualified full-time employees in thisCommonwealth during that entire taxable year.
"Retaliatory cost" means the additional regulatory costs, including anytaxes or fees exacted for the privilege of doing business, paid by aVirginia-domiciled insurer to another state pursuant to a law of such staterequiring, when an insurer domiciled in such other state is subject toregulatory costs in this Commonwealth that are greater than those imposed bysuch other state on insurers domiciled in this Commonwealth, theVirginia-domiciled insurer to pay additional regulatory costs to equal theregulatory costs imposed by this Commonwealth on an insurer domiciled in suchother state. Such term, however, shall not include penalties or interest forlate payment of taxes, fees or other charges, fines or penalties assessed asthe result of the violation of laws of such other state, or sums paid insettlement or compromise of alleged violations of such laws.
C. Applications for a credit and for a refund of excess taxes may besubmitted by a qualified company individually or on behalf of the members ofan affiliated insurance group on or before March 1 next succeeding the end ofthe taxable year. Any payment of the tax imposed under § 58.1-2501, includingany credit claimed under this section, shall be deemed to have been made withthe return filed on March 1 reporting such tax and claiming any credits or onthe last day prescribed for the timely filing of such return or, if later,the actual date of payment or notice of denial of any credits claimedhereunder. An amended application or return may be filed, and a creditclaimed under this section, within one year of the payment of the tax forsuch year. Applications shall be submitted with a form approved by theCommission and signed by an independent certified public accountant licensedby the Commonwealth who states that the domestic insurance company oraffiliated insurance group, as applicable, is eligible for the credit claimed.
D. Any credit provided pursuant to this section shall be taken after allother applicable credits. Any credit not taken by a domestic insurancecompany may be taken by other members of an affiliated insurance group. Anycredit not used to offset tax for the taxable year in which the credit wasallowed may be, to the extent not so used, carried forward for the next 10succeeding taxable years. Unused credits, including credits carried forwardfrom previous years, in an amount not exceeding $800,000 annually, exclusiveof refunds due to overpayment or other sources, per domestic insurancecompany or affiliated insurance group, as applicable, shall be refunded tosuch company, or to the members of such group as they may agree, upon filinga refund application with the Commission. Refunds for unused credits shallfirst be applied to reduce the oldest unused credits. Refunds, includingrefunds based on the application of credits and overpayments of estimatedtaxes, shall be made following the filing of the refund application and paidout of the state treasury on the order of the Commission upon the Comptroller.
E. If two or more domestic insurance companies paying retaliatory costs inany year are members of an affiliated insurance group, the total of theretaliatory costs paid may be combined and apportioned among the members ofthe affiliated insurance group as the members may agree.
F. The failure of a domestic insurance company or members of an affiliatedinsurance group to qualify for a new credit under this section in any yearshall not affect its ability to use credits carried over from previous years.
§ 58.1-2510. Tax credit for retaliatory costs paid to other states.
A. For license years beginning on and after July 1, 1998, every qualifiedcompany shall be allowed a credit against the tax imposed by § 58.1-2501 inan amount equal to the retaliatory costs incurred during the correspondingtaxable year as a result of the difference between other states' lowerpremium tax rates and other costs and the tax rates and costs imposed by theCommonwealth of Virginia.
B. As used in this section:
"Affiliate" of a specific company or a company "affiliated" with aspecific company means a company that directly or indirectly through one ormore intermediaries controls, is controlled by, or is under common controlwith the company specified. A company shall be deemed to control, becontrolled by, or be under common control with the company specified if theirrelationship to each other is such that one company owns at least eightypercent of the voting power of the other company or at least eighty percentof the voting power of all companies is owned by the same interests.
"Affiliated insurance group" means two or more affiliated companies (i) atleast one of which is a domestic insurance company and (ii) each of which isin the business of insurance, leasing, financial services, or providingadministrative or other support for other members of the group, or is aholding company for the other members of the group.
"Domestic insurance company" means any insurance company incorporated ororganized under the laws of this Commonwealth and headquartered within thisCommonwealth.
"Permanent full-time position" means a position of an indefinite durationin this Commonwealth requiring a minimum of thirty-five hours of anemployee's time a week for the entire normal year of the company'soperations, which "normal year" shall consist of at least forty-eightweeks. Seasonal or temporary positions and positions in building and groundsmaintenance, security, and other such positions which are ancillary to theprincipal business of the employer shall not qualify as new, permanentfull-time positions.
"Qualified company" means a domestic insurance company that (i) has made aqualified investment in this Commonwealth and (ii) for license yearsbeginning on or after July 1, 1998, maintained the employment level requiredfor a qualified investment, such level to be measured as of December 31 ofthe corresponding taxable year. The foregoing requirements may be satisfiedby either the domestic insurance company or collectively by all the membersof the affiliated insurance group of which the qualified company is a member.
"Qualified full-time employee" means an employee filling a permanentfull-time position with a domestic insurance company or member of anaffiliated insurance group.
"Qualified investment" means an investment in this Commonwealth by adomestic insurance company or any one or more members of an affiliatedinsurance group that results in (i) an increase as of December 31, 1997, ofat least 325 qualified full-time employees above such company's or group'stotal combined employment level in this Commonwealth on December 31, 1996, or(ii) during any taxable year beginning on or after January 1, 2001, suchcompany or group having more than 100 qualified full-time employees in thisCommonwealth during that entire taxable year.
"Retaliatory cost" means the additional regulatory costs, including anytaxes or fees exacted for the privilege of doing business, paid by aVirginia-domiciled insurer to another state pursuant to a law of such staterequiring, when an insurer domiciled in such other state is subject toregulatory costs in this Commonwealth that are greater than those imposed bysuch other state on insurers domiciled in this Commonwealth, theVirginia-domiciled insurer to pay additional regulatory costs to equal theregulatory costs imposed by this Commonwealth on an insurer domiciled in suchother state. Such term, however, shall not include penalties or interest forlate payment of taxes, fees or other charges, fines or penalties assessed asthe result of the violation of laws of such other state, or sums paid insettlement or compromise of alleged violations of such laws.
C. Applications for a credit and for a refund of excess taxes may besubmitted by a qualified company individually or on behalf of the members ofan affiliated insurance group on or before March 1 next succeeding the end ofthe taxable year. Any payment of the tax imposed under § 58.1-2501, includingany credit claimed under this section, shall be deemed to have been made withthe return filed on March 1 reporting such tax and claiming any credits or onthe last day prescribed for the timely filing of such return or, if later,the actual date of payment or notice of denial of any credits claimedhereunder. An amended application or return may be filed, and a creditclaimed under this section, within one year of the payment of the tax forsuch year. Applications shall be submitted with a form approved by theCommission and signed by an independent certified public accountant licensedby the Commonwealth who states that the domestic insurance company oraffiliated insurance group, as applicable, is eligible for the credit claimed.
D. Any credit provided pursuant to this section shall be taken after allother applicable credits. Any credit not taken by a domestic insurancecompany may be taken by other members of an affiliated insurance group. Anycredit not used to offset tax for the taxable year in which the credit wasallowed may be, to the extent not so used, carried forward for the next 10succeeding taxable years. Unused credits, including credits carried forwardfrom previous years, in an amount not exceeding $800,000 annually, exclusiveof refunds due to overpayment or other sources, per domestic insurancecompany or affiliated insurance group, as applicable, shall be refunded tosuch company, or to the members of such group as they may agree, upon filinga refund application with the Commission. Refunds for unused credits shallfirst be applied to reduce the oldest unused credits. Refunds, includingrefunds based on the application of credits and overpayments of estimatedtaxes, shall be made following the filing of the refund application and paidout of the state treasury on the order of the Commission upon the Comptroller.
E. If two or more domestic insurance companies paying retaliatory costs inany year are members of an affiliated insurance group, the total of theretaliatory costs paid may be combined and apportioned among the members ofthe affiliated insurance group as the members may agree.
F. The failure of a domestic insurance company or members of an affiliatedinsurance group to qualify for a new credit under this section in any yearshall not affect its ability to use credits carried over from previous years.
§ 58.1-2510. Tax credit for retaliatory costs paid to other states.
A. For license years beginning on and after July 1, 1998, every qualifiedcompany shall be allowed a credit against the tax imposed by § 58.1-2501 inan amount equal to the retaliatory costs incurred during the correspondingtaxable year as a result of the difference between other states' lowerpremium tax rates and other costs and the tax rates and costs imposed by theCommonwealth of Virginia.
B. As used in this section:
"Affiliate" of a specific company or a company "affiliated" with aspecific company means a company that directly or indirectly through one ormore intermediaries controls, is controlled by, or is under common controlwith the company specified. A company shall be deemed to control, becontrolled by, or be under common control with the company specified if theirrelationship to each other is such that one company owns at least eightypercent of the voting power of the other company or at least eighty percentof the voting power of all companies is owned by the same interests.
"Affiliated insurance group" means two or more affiliated companies (i) atleast one of which is a domestic insurance company and (ii) each of which isin the business of insurance, leasing, financial services, or providingadministrative or other support for other members of the group, or is aholding company for the other members of the group.
"Domestic insurance company" means any insurance company incorporated ororganized under the laws of this Commonwealth and headquartered within thisCommonwealth.
"Permanent full-time position" means a position of an indefinite durationin this Commonwealth requiring a minimum of thirty-five hours of anemployee's time a week for the entire normal year of the company'soperations, which "normal year" shall consist of at least forty-eightweeks. Seasonal or temporary positions and positions in building and groundsmaintenance, security, and other such positions which are ancillary to theprincipal business of the employer shall not qualify as new, permanentfull-time positions.
"Qualified company" means a domestic insurance company that (i) has made aqualified investment in this Commonwealth and (ii) for license yearsbeginning on or after July 1, 1998, maintained the employment level requiredfor a qualified investment, such level to be measured as of December 31 ofthe corresponding taxable year. The foregoing requirements may be satisfiedby either the domestic insurance company or collectively by all the membersof the affiliated insurance group of which the qualified company is a member.
"Qualified full-time employee" means an employee filling a permanentfull-time position with a domestic insurance company or member of anaffiliated insurance group.
"Qualified investment" means an investment in this Commonwealth by adomestic insurance company or any one or more members of an affiliatedinsurance group that results in (i) an increase as of December 31, 1997, ofat least 325 qualified full-time employees above such company's or group'stotal combined employment level in this Commonwealth on December 31, 1996, or(ii) during any taxable year beginning on or after January 1, 2001, suchcompany or group having more than 100 qualified full-time employees in thisCommonwealth during that entire taxable year.
"Retaliatory cost" means the additional regulatory costs, including anytaxes or fees exacted for the privilege of doing business, paid by aVirginia-domiciled insurer to another state pursuant to a law of such staterequiring, when an insurer domiciled in such other state is subject toregulatory costs in this Commonwealth that are greater than those imposed bysuch other state on insurers domiciled in this Commonwealth, theVirginia-domiciled insurer to pay additional regulatory costs to equal theregulatory costs imposed by this Commonwealth on an insurer domiciled in suchother state. Such term, however, shall not include penalties or interest forlate payment of taxes, fees or other charges, fines or penalties assessed asthe result of the violation of laws of such other state, or sums paid insettlement or compromise of alleged violations of such laws.
C. Applications for a credit and for a refund of excess taxes may besubmitted by a qualified company individually or on behalf of the members ofan affiliated insurance group on or before March 1 next succeeding the end ofthe taxable year. Any payment of the tax imposed under § 58.1-2501, includingany credit claimed under this section, shall be deemed to have been made withthe return filed on March 1 reporting such tax and claiming any credits or onthe last day prescribed for the timely filing of such return or, if later,the actual date of payment or notice of denial of any credits claimedhereunder. An amended application or return may be filed, and a creditclaimed under this section, within one year of the payment of the tax forsuch year. Applications shall be submitted with a form approved by theCommission and signed by an independent certified public accountant licensedby the Commonwealth who states that the domestic insurance company oraffiliated insurance group, as applicable, is eligible for the credit claimed.
D. Any credit provided pursuant to this section shall be taken after allother applicable credits. Any credit not taken by a domestic insurancecompany may be taken by other members of an affiliated insurance group. Anycredit not used to offset tax for the taxable year in which the credit wasallowed may be, to the extent not so used, carried forward for the next 10succeeding taxable years. Unused credits, including credits carried forwardfrom previous years, in an amount not exceeding $800,000 annually, exclusiveof refunds due to overpayment or other sources, per domestic insurancecompany or affiliated insurance group, as applicable, shall be refunded tosuch company, or to the members of such group as they may agree, upon filinga refund application with the Commission. Refunds for unused credits shallfirst be applied to reduce the oldest unused credits. Refunds, includingrefunds based on the application of credits and overpayments of estimatedtaxes, shall be made following the filing of the refund application and paidout of the state treasury on the order of the Commission upon the Comptroller.
E. If two or more domestic insurance companies paying retaliatory costs inany year are members of an affiliated insurance group, the total of theretaliatory costs paid may be combined and apportioned among the members ofthe affiliated insurance group as the members may agree.
F. The failure of a domestic insurance company or members of an affiliatedinsurance group to qualify for a new credit under this section in any yearshall not affect its ability to use credits carried over from previous years.
