§ 58.1-439.12:01. Credit for cigarettes manufactured and exported.
A. For purposes of this section:
"Base year export volume" means the number of cigarettes manufactured by acorporation, which cigarettes were also exported by such manufacturer duringits taxable year beginning in calendar year 2004.
"Cigarette or cigarettes" means the same as that term is defined in §58.1-1031.
"Current year export volume" means the number of cigarettes manufactured bya corporation, which cigarettes were also exported by such manufacturer inthe taxable year for which credit under this section is claimed. The termshall only apply for taxable years beginning on and after January 1, 2006.
"Exported" or "exports" means the shipment of cigarettes to a foreigncountry.
"Manufactured" or "manufactures" means manufactured in Virginia.
B. For taxable years beginning on and after January 1, 2006, but beforeJanuary 1, 2016, any corporation that manufactures cigarettes in Virginia,which cigarettes are exported by such manufacturer, shall be allowed a creditagainst the tax imposed by § 58.1-400 for such exported cigarettes asfollows:
1. If the current year export volume of the corporation is less than 50percent of the base year export volume for the corporation, no credit shallbe allowed for the taxable year.
2. If the current year export volume of the corporation is at least 50percent but less than 60 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.20 per 1,000 cigarettes of thecurrent year export volume.
3. If the current year export volume of the corporation is at least 60percent but less than 80 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.25 per 1,000 cigarettes of thecurrent year export volume.
4. If the current year export volume of the corporation is at least 80percent but less than 100 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.30 per 1,000 cigarettes of thecurrent year export volume.
5. If the current year export volume of the corporation is at least 100percent but less than 120 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.35 per 1,000 cigarettes of thecurrent year export volume.
6. If the current year export volume of the corporation is at least 120percent of the base year export volume for the corporation, the creditallowed shall equal $0.40 per 1,000 cigarettes of the current year exportvolume.
C. In no event shall the credit allowed under this section for any taxableyear to any corporation exceed the lesser of $6 million or 50 percent of thecorporation's income tax liability to the Commonwealth for such taxable year.
D. The total amount of tax credits granted under this section for each fiscalyear of the Commonwealth shall not exceed $6 million. A corporation meetingthe requirements of this section shall be eligible to receive a tax credit tothe extent the corporation reserves such tax credit through the Department asprovided herein.
The Department shall establish policies and procedures for the reservation oftax credits by eligible corporations. Such policies and procedures shallprovide (i) requirements for applying for reservations of tax credits; (ii) asystem for allocating the available amount of tax credits among eligiblecorporations; (iii) a method for the issuance of reservations to eligiblecorporations that did not initially receive a reservation in any year, if theDepartment determines that tax credit reservations were issued to othercorporations that did not use, or were determined to be wholly or partiallyineligible for, a reserved tax credit; and (iv) a procedure for thecancellation and reallocation of tax credit reservations allocated toeligible corporations that, after reserving tax credits, have been determinedto be ineligible for all or a portion of the tax credits reserved. In no caseshall a corporation be allowed to carry over any tax credit to be appliedagainst any income tax for taxable years subsequent to the taxable year ofexport.
Actions of the Department relating to the approval or denial of applicationsfor reservations for tax credits pursuant to this section shall be exemptfrom the provisions of the Administrative Process Act pursuant (§ 2.2-4000 etseq.).
E. A corporation claiming the credit under this section for a taxable yearshall submit with its application for reservation of tax credits and itsstate income tax return a written statement certifying its base year exportvolume and current year export volume. It shall also submit with suchapplication and return a listing of its export volumes as reported on itsmonthly reports to the Bureau of Alcohol, Tobacco and Firearms of the UnitedStates Department of the Treasury for each month of the taxable year and alisting for each month of the taxable year of its export volumes.
(2004, Sp. Sess. I, c. 4; 2005, c. 951; 2006, Sp. Sess. I, c. 2.)
§ 58.1-439.12:01. Credit for cigarettes manufactured and exported.
A. For purposes of this section:
"Base year export volume" means the number of cigarettes manufactured by acorporation, which cigarettes were also exported by such manufacturer duringits taxable year beginning in calendar year 2004.
"Cigarette or cigarettes" means the same as that term is defined in §58.1-1031.
"Current year export volume" means the number of cigarettes manufactured bya corporation, which cigarettes were also exported by such manufacturer inthe taxable year for which credit under this section is claimed. The termshall only apply for taxable years beginning on and after January 1, 2006.
"Exported" or "exports" means the shipment of cigarettes to a foreigncountry.
"Manufactured" or "manufactures" means manufactured in Virginia.
B. For taxable years beginning on and after January 1, 2006, but beforeJanuary 1, 2016, any corporation that manufactures cigarettes in Virginia,which cigarettes are exported by such manufacturer, shall be allowed a creditagainst the tax imposed by § 58.1-400 for such exported cigarettes asfollows:
1. If the current year export volume of the corporation is less than 50percent of the base year export volume for the corporation, no credit shallbe allowed for the taxable year.
2. If the current year export volume of the corporation is at least 50percent but less than 60 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.20 per 1,000 cigarettes of thecurrent year export volume.
3. If the current year export volume of the corporation is at least 60percent but less than 80 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.25 per 1,000 cigarettes of thecurrent year export volume.
4. If the current year export volume of the corporation is at least 80percent but less than 100 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.30 per 1,000 cigarettes of thecurrent year export volume.
5. If the current year export volume of the corporation is at least 100percent but less than 120 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.35 per 1,000 cigarettes of thecurrent year export volume.
6. If the current year export volume of the corporation is at least 120percent of the base year export volume for the corporation, the creditallowed shall equal $0.40 per 1,000 cigarettes of the current year exportvolume.
C. In no event shall the credit allowed under this section for any taxableyear to any corporation exceed the lesser of $6 million or 50 percent of thecorporation's income tax liability to the Commonwealth for such taxable year.
D. The total amount of tax credits granted under this section for each fiscalyear of the Commonwealth shall not exceed $6 million. A corporation meetingthe requirements of this section shall be eligible to receive a tax credit tothe extent the corporation reserves such tax credit through the Department asprovided herein.
The Department shall establish policies and procedures for the reservation oftax credits by eligible corporations. Such policies and procedures shallprovide (i) requirements for applying for reservations of tax credits; (ii) asystem for allocating the available amount of tax credits among eligiblecorporations; (iii) a method for the issuance of reservations to eligiblecorporations that did not initially receive a reservation in any year, if theDepartment determines that tax credit reservations were issued to othercorporations that did not use, or were determined to be wholly or partiallyineligible for, a reserved tax credit; and (iv) a procedure for thecancellation and reallocation of tax credit reservations allocated toeligible corporations that, after reserving tax credits, have been determinedto be ineligible for all or a portion of the tax credits reserved. In no caseshall a corporation be allowed to carry over any tax credit to be appliedagainst any income tax for taxable years subsequent to the taxable year ofexport.
Actions of the Department relating to the approval or denial of applicationsfor reservations for tax credits pursuant to this section shall be exemptfrom the provisions of the Administrative Process Act pursuant (§ 2.2-4000 etseq.).
E. A corporation claiming the credit under this section for a taxable yearshall submit with its application for reservation of tax credits and itsstate income tax return a written statement certifying its base year exportvolume and current year export volume. It shall also submit with suchapplication and return a listing of its export volumes as reported on itsmonthly reports to the Bureau of Alcohol, Tobacco and Firearms of the UnitedStates Department of the Treasury for each month of the taxable year and alisting for each month of the taxable year of its export volumes.
(2004, Sp. Sess. I, c. 4; 2005, c. 951; 2006, Sp. Sess. I, c. 2.)
§ 58.1-439.12:01. Credit for cigarettes manufactured and exported.
A. For purposes of this section:
"Base year export volume" means the number of cigarettes manufactured by acorporation, which cigarettes were also exported by such manufacturer duringits taxable year beginning in calendar year 2004.
"Cigarette or cigarettes" means the same as that term is defined in §58.1-1031.
"Current year export volume" means the number of cigarettes manufactured bya corporation, which cigarettes were also exported by such manufacturer inthe taxable year for which credit under this section is claimed. The termshall only apply for taxable years beginning on and after January 1, 2006.
"Exported" or "exports" means the shipment of cigarettes to a foreigncountry.
"Manufactured" or "manufactures" means manufactured in Virginia.
B. For taxable years beginning on and after January 1, 2006, but beforeJanuary 1, 2016, any corporation that manufactures cigarettes in Virginia,which cigarettes are exported by such manufacturer, shall be allowed a creditagainst the tax imposed by § 58.1-400 for such exported cigarettes asfollows:
1. If the current year export volume of the corporation is less than 50percent of the base year export volume for the corporation, no credit shallbe allowed for the taxable year.
2. If the current year export volume of the corporation is at least 50percent but less than 60 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.20 per 1,000 cigarettes of thecurrent year export volume.
3. If the current year export volume of the corporation is at least 60percent but less than 80 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.25 per 1,000 cigarettes of thecurrent year export volume.
4. If the current year export volume of the corporation is at least 80percent but less than 100 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.30 per 1,000 cigarettes of thecurrent year export volume.
5. If the current year export volume of the corporation is at least 100percent but less than 120 percent of the base year export volume for thecorporation, the credit allowed shall equal $0.35 per 1,000 cigarettes of thecurrent year export volume.
6. If the current year export volume of the corporation is at least 120percent of the base year export volume for the corporation, the creditallowed shall equal $0.40 per 1,000 cigarettes of the current year exportvolume.
C. In no event shall the credit allowed under this section for any taxableyear to any corporation exceed the lesser of $6 million or 50 percent of thecorporation's income tax liability to the Commonwealth for such taxable year.
D. The total amount of tax credits granted under this section for each fiscalyear of the Commonwealth shall not exceed $6 million. A corporation meetingthe requirements of this section shall be eligible to receive a tax credit tothe extent the corporation reserves such tax credit through the Department asprovided herein.
The Department shall establish policies and procedures for the reservation oftax credits by eligible corporations. Such policies and procedures shallprovide (i) requirements for applying for reservations of tax credits; (ii) asystem for allocating the available amount of tax credits among eligiblecorporations; (iii) a method for the issuance of reservations to eligiblecorporations that did not initially receive a reservation in any year, if theDepartment determines that tax credit reservations were issued to othercorporations that did not use, or were determined to be wholly or partiallyineligible for, a reserved tax credit; and (iv) a procedure for thecancellation and reallocation of tax credit reservations allocated toeligible corporations that, after reserving tax credits, have been determinedto be ineligible for all or a portion of the tax credits reserved. In no caseshall a corporation be allowed to carry over any tax credit to be appliedagainst any income tax for taxable years subsequent to the taxable year ofexport.
Actions of the Department relating to the approval or denial of applicationsfor reservations for tax credits pursuant to this section shall be exemptfrom the provisions of the Administrative Process Act pursuant (§ 2.2-4000 etseq.).
E. A corporation claiming the credit under this section for a taxable yearshall submit with its application for reservation of tax credits and itsstate income tax return a written statement certifying its base year exportvolume and current year export volume. It shall also submit with suchapplication and return a listing of its export volumes as reported on itsmonthly reports to the Bureau of Alcohol, Tobacco and Firearms of the UnitedStates Department of the Treasury for each month of the taxable year and alisting for each month of the taxable year of its export volumes.
(2004, Sp. Sess. I, c. 4; 2005, c. 951; 2006, Sp. Sess. I, c. 2.)
