A. Any person shall be entitled to a credit against the tax imposed byArticles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and 10 (§ 58.1-400et seq.) of Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); or Article 1 (§58.1-2500 et seq.) of Chapter 25 of Title 58.1 in the amount certified to theDepartment or the State Corporation Commission, as applicable, pursuant tosubsection F for any five taxable years, as such years are determined by theBoard of Housing and Community Development, in which a federal low-incomehousing credit is allowed for low-income housing units placed in service onor after January 1, 1998, provided such person qualified for and claimed thelow-income housing credit on the federal income tax return filed for thetaxable year, and meets the qualifications established by the Board forclaiming such credit on the applicable Virginia tax return.
B. The Board of Housing and Community Development shall issue regulationsestablishing the amount of the low-income housing credit allowable, thetaxable year or years in which such credit may be taken by the taxpayer, andthe terms and conditions for qualifying for such credit. The Virginialow-income housing credit amount shall be a percentage of the federallow-income tax credit claimed for the taxable year; however, the specificpercentage shall be determined by the Board. If the low-income housing creditclaimed on the person's federal tax return was calculated on a period of lessthan 12 months, the Board may nevertheless calculate the Virginia low-incomehousing credit amount on the basis of a 12-month period for the taxable year.
C. The Department of Housing and Community Development shall administer theapproval of low-income housing credits. However, the Board shall not approveany low-income housing credits after June 30, 2010. The total maximum amountof low-income housing credits which may be approved by the Board of Housingand Community Development in any calendar year shall be $500,000. Creditsgranted to a partnership, limited liability company or electing smallbusiness corporation (S corporation) shall be allocated among all partners orshareholders, respectively, either in proportion to their ownership interestin such entity or as the partners or shareholders mutually agree as providedin an executed document, the form of which shall be prescribed by the Board.
D. The amount of credit allowed pursuant to this section shall not exceed thetax imposed for such taxable year. Any credit not usable for the taxable yearmay be carried over for credit until the earlier of (i) the full amount ofthe credit is used or (ii) the expiration of the fifth taxable year after thetaxable year in which the Department of Housing and Community Development hascertified the amount of such tax credit pursuant to subsection F. No creditshall be carried back to a preceding taxable year. If a taxpayer who issubject to the tax limitation imposed pursuant to this subsection is allowedanother credit pursuant to any other section of the Code of Virginia, or hasa credit carryover from a preceding taxable year, such taxpayer shall beconsidered to have first utilized any credit allowed that does not have acarryover provision, and then any credit that is carried forward from apreceding taxable year, prior to the utilization of any credit allowedpursuant to this section.
E. If any person qualifies in a taxable year for the Virginia low-incomehousing credit, and in a subsequent taxable year is subject to the creditrecapture provisions for federal income tax purposes, such person shallsimilarly be subject to a credit recapture amount on the Virginia tax returnfor which the applicable Virginia low-income housing credit was applied orused. Any credit recapture shall be assessed and collected in the same manneras a tax attributable to a change in federal taxable income within themeaning of § 58.1-311. The Board of Housing and Community Development shallpromulgate regulations establishing the terms and conditions for computingthe credit recapture amount for the applicable Virginia tax return.
F. To claim the credit authorized under this section, the taxpayer shallapply to the Department of Housing and Community Development to determine thecredit amount allowable for the taxable year. The Department shall certify tothe Department of Taxation or the State Corporation Commission, asapplicable, that such person qualified for the Virginia low-income housingcredit amount claimed on the applicable tax return for the taxable year. Thetaxpayer shall attach the certification form to the Virginia tax return filedwith the Department of Taxation or the State Corporation Commission, asapplicable. The Department of Housing and Community Development shall alsoprovide the Department of Taxation or the State Corporation Commission, asapplicable, with credit recapture amounts and any other information it mayrequire relating to the credit claimed by the taxpayer.
(1989, c. 280; 1990, c. 830; 1992, cc. 325, 347; 1994, c. 611; 1996, cc. 580,826; 2001, cc. 293, 299; 2007, c. 778; 2010, cc. 520, 608.)
A. Any person shall be entitled to a credit against the tax imposed byArticles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and 10 (§ 58.1-400et seq.) of Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); or Article 1 (§58.1-2500 et seq.) of Chapter 25 of Title 58.1 in the amount certified to theDepartment or the State Corporation Commission, as applicable, pursuant tosubsection F for any five taxable years, as such years are determined by theBoard of Housing and Community Development, in which a federal low-incomehousing credit is allowed for low-income housing units placed in service onor after January 1, 1998, provided such person qualified for and claimed thelow-income housing credit on the federal income tax return filed for thetaxable year, and meets the qualifications established by the Board forclaiming such credit on the applicable Virginia tax return.
B. The Board of Housing and Community Development shall issue regulationsestablishing the amount of the low-income housing credit allowable, thetaxable year or years in which such credit may be taken by the taxpayer, andthe terms and conditions for qualifying for such credit. The Virginialow-income housing credit amount shall be a percentage of the federallow-income tax credit claimed for the taxable year; however, the specificpercentage shall be determined by the Board. If the low-income housing creditclaimed on the person's federal tax return was calculated on a period of lessthan 12 months, the Board may nevertheless calculate the Virginia low-incomehousing credit amount on the basis of a 12-month period for the taxable year.
C. The Department of Housing and Community Development shall administer theapproval of low-income housing credits. However, the Board shall not approveany low-income housing credits after June 30, 2010. The total maximum amountof low-income housing credits which may be approved by the Board of Housingand Community Development in any calendar year shall be $500,000. Creditsgranted to a partnership, limited liability company or electing smallbusiness corporation (S corporation) shall be allocated among all partners orshareholders, respectively, either in proportion to their ownership interestin such entity or as the partners or shareholders mutually agree as providedin an executed document, the form of which shall be prescribed by the Board.
D. The amount of credit allowed pursuant to this section shall not exceed thetax imposed for such taxable year. Any credit not usable for the taxable yearmay be carried over for credit until the earlier of (i) the full amount ofthe credit is used or (ii) the expiration of the fifth taxable year after thetaxable year in which the Department of Housing and Community Development hascertified the amount of such tax credit pursuant to subsection F. No creditshall be carried back to a preceding taxable year. If a taxpayer who issubject to the tax limitation imposed pursuant to this subsection is allowedanother credit pursuant to any other section of the Code of Virginia, or hasa credit carryover from a preceding taxable year, such taxpayer shall beconsidered to have first utilized any credit allowed that does not have acarryover provision, and then any credit that is carried forward from apreceding taxable year, prior to the utilization of any credit allowedpursuant to this section.
E. If any person qualifies in a taxable year for the Virginia low-incomehousing credit, and in a subsequent taxable year is subject to the creditrecapture provisions for federal income tax purposes, such person shallsimilarly be subject to a credit recapture amount on the Virginia tax returnfor which the applicable Virginia low-income housing credit was applied orused. Any credit recapture shall be assessed and collected in the same manneras a tax attributable to a change in federal taxable income within themeaning of § 58.1-311. The Board of Housing and Community Development shallpromulgate regulations establishing the terms and conditions for computingthe credit recapture amount for the applicable Virginia tax return.
F. To claim the credit authorized under this section, the taxpayer shallapply to the Department of Housing and Community Development to determine thecredit amount allowable for the taxable year. The Department shall certify tothe Department of Taxation or the State Corporation Commission, asapplicable, that such person qualified for the Virginia low-income housingcredit amount claimed on the applicable tax return for the taxable year. Thetaxpayer shall attach the certification form to the Virginia tax return filedwith the Department of Taxation or the State Corporation Commission, asapplicable. The Department of Housing and Community Development shall alsoprovide the Department of Taxation or the State Corporation Commission, asapplicable, with credit recapture amounts and any other information it mayrequire relating to the credit claimed by the taxpayer.
(1989, c. 280; 1990, c. 830; 1992, cc. 325, 347; 1994, c. 611; 1996, cc. 580,826; 2001, cc. 293, 299; 2007, c. 778; 2010, cc. 520, 608.)
A. Any person shall be entitled to a credit against the tax imposed byArticles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and 10 (§ 58.1-400et seq.) of Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); or Article 1 (§58.1-2500 et seq.) of Chapter 25 of Title 58.1 in the amount certified to theDepartment or the State Corporation Commission, as applicable, pursuant tosubsection F for any five taxable years, as such years are determined by theBoard of Housing and Community Development, in which a federal low-incomehousing credit is allowed for low-income housing units placed in service onor after January 1, 1998, provided such person qualified for and claimed thelow-income housing credit on the federal income tax return filed for thetaxable year, and meets the qualifications established by the Board forclaiming such credit on the applicable Virginia tax return.
B. The Board of Housing and Community Development shall issue regulationsestablishing the amount of the low-income housing credit allowable, thetaxable year or years in which such credit may be taken by the taxpayer, andthe terms and conditions for qualifying for such credit. The Virginialow-income housing credit amount shall be a percentage of the federallow-income tax credit claimed for the taxable year; however, the specificpercentage shall be determined by the Board. If the low-income housing creditclaimed on the person's federal tax return was calculated on a period of lessthan 12 months, the Board may nevertheless calculate the Virginia low-incomehousing credit amount on the basis of a 12-month period for the taxable year.
C. The Department of Housing and Community Development shall administer theapproval of low-income housing credits. However, the Board shall not approveany low-income housing credits after June 30, 2010. The total maximum amountof low-income housing credits which may be approved by the Board of Housingand Community Development in any calendar year shall be $500,000. Creditsgranted to a partnership, limited liability company or electing smallbusiness corporation (S corporation) shall be allocated among all partners orshareholders, respectively, either in proportion to their ownership interestin such entity or as the partners or shareholders mutually agree as providedin an executed document, the form of which shall be prescribed by the Board.
D. The amount of credit allowed pursuant to this section shall not exceed thetax imposed for such taxable year. Any credit not usable for the taxable yearmay be carried over for credit until the earlier of (i) the full amount ofthe credit is used or (ii) the expiration of the fifth taxable year after thetaxable year in which the Department of Housing and Community Development hascertified the amount of such tax credit pursuant to subsection F. No creditshall be carried back to a preceding taxable year. If a taxpayer who issubject to the tax limitation imposed pursuant to this subsection is allowedanother credit pursuant to any other section of the Code of Virginia, or hasa credit carryover from a preceding taxable year, such taxpayer shall beconsidered to have first utilized any credit allowed that does not have acarryover provision, and then any credit that is carried forward from apreceding taxable year, prior to the utilization of any credit allowedpursuant to this section.
E. If any person qualifies in a taxable year for the Virginia low-incomehousing credit, and in a subsequent taxable year is subject to the creditrecapture provisions for federal income tax purposes, such person shallsimilarly be subject to a credit recapture amount on the Virginia tax returnfor which the applicable Virginia low-income housing credit was applied orused. Any credit recapture shall be assessed and collected in the same manneras a tax attributable to a change in federal taxable income within themeaning of § 58.1-311. The Board of Housing and Community Development shallpromulgate regulations establishing the terms and conditions for computingthe credit recapture amount for the applicable Virginia tax return.
F. To claim the credit authorized under this section, the taxpayer shallapply to the Department of Housing and Community Development to determine thecredit amount allowable for the taxable year. The Department shall certify tothe Department of Taxation or the State Corporation Commission, asapplicable, that such person qualified for the Virginia low-income housingcredit amount claimed on the applicable tax return for the taxable year. Thetaxpayer shall attach the certification form to the Virginia tax return filedwith the Department of Taxation or the State Corporation Commission, asapplicable. The Department of Housing and Community Development shall alsoprovide the Department of Taxation or the State Corporation Commission, asapplicable, with credit recapture amounts and any other information it mayrequire relating to the credit claimed by the taxpayer.
(1989, c. 280; 1990, c. 830; 1992, cc. 325, 347; 1994, c. 611; 1996, cc. 580,826; 2001, cc. 293, 299; 2007, c. 778; 2010, cc. 520, 608.)
