§ 58.1-439.13. Tax credit for investing in technology industries intobacco-dependent localities.
A. For purposes of this section:
"Biotechnology company" means a taxpayer that (i) has paid or incurredqualified research expenses for research, development, production, orprovision of biotechnology for the purpose of developing or providingproducts or processes for specific commercial or public purposes, including,but not limited to, medical, pharmaceutical, nutritional, and otherhealth-related purposes; agricultural purposes; or environmental purposes,(ii) conducts pilot scale manufacturing in Virginia, or (iii) providesservices or products necessary for such research, development, production, orprovision.
"Capital investment" means an investment in real property, personalproperty, or both, by an information technology or biotechnology company thatis capitalized by such company.
"Equity" has the same meaning as that term is defined in § 58.1-339.4.
"Qualified investment" means a cash investment in an information technologyor biotechnology company in the form of equity or subordinated debt; however,an investment shall not be qualified if the taxpayer who holds suchinvestment, or any of such taxpayer's family members, or any entityaffiliated with such taxpayer, receives or has received compensation fromsuch company in exchange for services provided to such business as anemployee, officer, director, manager, independent contractor or otherwise inconnection with or within one year before or after the date of suchinvestment. For the purposes hereof, reimbursement of reasonable expensesincurred shall not be deemed to be compensation.
A qualified investment shall also include a capital investment.
"Qualified research expenses" means qualified research expenses as definedin § 41 of the Internal Revenue Code of 1986, 26 U.S.C. § 41, as in effect onJune 30, 1992, in the fields of advanced computing, advanced materials,biotechnology, electronic device technology, environmental technology, ormedical device technology.
"Subordinated debt" has the same meaning as that term is defined in §58.1-339.4.
"Tobacco-dependent locality" means those Virginia localities that havetraditionally economically depended on tobacco and shall be identified by theTobacco Indemnification and Community Revitalization Commission.
B. For taxable years beginning on and after January 1, 2000, but beforeJanuary 1, 2010, a taxpayer shall be allowed a credit against the taxesimposed for such taxable years by Articles 2 (§ 58.1-320 et seq.), 6 (§58.1-360 et seq.), and 10 (§ 58.1-400 et seq.) of this chapter in the amountequal to fifty percent of the qualified investment in an informationtechnology or biotechnology company located in a tobacco-dependent locality.The amount of credit allowed to a taxpayer under this section shall notexceed $500,000 in aggregate for qualified investments other than capitalinvestments, and shall not exceed $500,000 per taxable year for capitalinvestments. Such credit shall be first allowed for the taxable year in whichthe qualified investment was completed or made if the qualified investmentwas a capital investment. For all qualified investments, before any credit isallowed under this section, the Virginia Economic Development Partnershipshall review, evaluate and report to the Tobacco Indemnification andCommunity Revitalization Commission upon the taxpayer's proposed capitalinvestments, detailing how such qualified investment will be spent in atobacco-dependent locality. The credit provided under this section shall thenfirst be allowed for the taxable year in which the Commission finds that suchqualified investment was spent in a tobacco-dependent locality. The amount ofcredit allowed shall not exceed the tax imposed for the taxable year. Anycredit not usable for the taxable year because of this limitation may becarried over for the next ten succeeding taxable years. No credit shall becarried back to a preceding taxable year. If a taxpayer that is subject tothe tax limitation imposed pursuant to this subsection is allowed anothercredit pursuant to any other section of the Code of Virginia, or has a creditcarryover from a preceding taxable year, such taxpayer shall be considered tohave first utilized any credit allowed that does not have a carryoverprovision, and then any credit that is carried forward from a precedingtaxable year, prior to the utilization of any credit allowed pursuant to thissection.
C. The tax credit established in this section may be claimed to the extentmoneys from the Tobacco Indemnification and Community Revitalization Fund,created in § 3.2-3106, are deposited into the Technology Initiative inTobacco-Dependent Localities Fund, established under § 58.1-439.15, for thepurpose of funding this credit. If the amount of credits otherwise allowableunder this section exceed the amount deposited in the Fund for a fiscal year,such credits shall be allocated to taxpayers on a pro rata basis by theDepartment of Taxation.
D. In the case of a qualified investment other than a capital investment,unless the taxpayer transfers the equity received in connection with suchinvestment as a result of (i) the liquidation of the information technologyor biotechnology company issuing such equity, (ii) the merger, consolidationor other acquisition of such business with or by a party not affiliated withsuch business, or (iii) the death of the taxpayer, any taxpayer that fails tohold such equity for at least five full calendar years following the calendaryear for which a tax credit for such investment is allowed pursuant to thissection shall forfeit both used and unused tax credits and shall pay theDepartment of Taxation a penalty equal to all of the tax credits allowed tosuch taxpayer pursuant to this section, except for credit allowed for acapital investment, with interest at the rate of one percent per month,compounded monthly, from the date the tax credits were allocated to thetaxpayer. Any amount received under this subsection shall be deposited intothe Technology Initiative in Tobacco-Dependent Localities Fund.
E. A taxpayer who claims the credit for a qualified investment under thissection may not use such qualified investment as the basis for claiming anyother credit provided under the Code of Virginia.
F. For purposes of this section, the amount of any credit attributable to apartnership, electing small business corporation (S corporation), or limitedliability company shall be allocated to the individual partners, shareholdersor members, respectively, in proportion to their ownership or interest insuch business entities.
§ 58.1-439.13. Tax credit for investing in technology industries intobacco-dependent localities.
A. For purposes of this section:
"Biotechnology company" means a taxpayer that (i) has paid or incurredqualified research expenses for research, development, production, orprovision of biotechnology for the purpose of developing or providingproducts or processes for specific commercial or public purposes, including,but not limited to, medical, pharmaceutical, nutritional, and otherhealth-related purposes; agricultural purposes; or environmental purposes,(ii) conducts pilot scale manufacturing in Virginia, or (iii) providesservices or products necessary for such research, development, production, orprovision.
"Capital investment" means an investment in real property, personalproperty, or both, by an information technology or biotechnology company thatis capitalized by such company.
"Equity" has the same meaning as that term is defined in § 58.1-339.4.
"Qualified investment" means a cash investment in an information technologyor biotechnology company in the form of equity or subordinated debt; however,an investment shall not be qualified if the taxpayer who holds suchinvestment, or any of such taxpayer's family members, or any entityaffiliated with such taxpayer, receives or has received compensation fromsuch company in exchange for services provided to such business as anemployee, officer, director, manager, independent contractor or otherwise inconnection with or within one year before or after the date of suchinvestment. For the purposes hereof, reimbursement of reasonable expensesincurred shall not be deemed to be compensation.
A qualified investment shall also include a capital investment.
"Qualified research expenses" means qualified research expenses as definedin § 41 of the Internal Revenue Code of 1986, 26 U.S.C. § 41, as in effect onJune 30, 1992, in the fields of advanced computing, advanced materials,biotechnology, electronic device technology, environmental technology, ormedical device technology.
"Subordinated debt" has the same meaning as that term is defined in §58.1-339.4.
"Tobacco-dependent locality" means those Virginia localities that havetraditionally economically depended on tobacco and shall be identified by theTobacco Indemnification and Community Revitalization Commission.
B. For taxable years beginning on and after January 1, 2000, but beforeJanuary 1, 2010, a taxpayer shall be allowed a credit against the taxesimposed for such taxable years by Articles 2 (§ 58.1-320 et seq.), 6 (§58.1-360 et seq.), and 10 (§ 58.1-400 et seq.) of this chapter in the amountequal to fifty percent of the qualified investment in an informationtechnology or biotechnology company located in a tobacco-dependent locality.The amount of credit allowed to a taxpayer under this section shall notexceed $500,000 in aggregate for qualified investments other than capitalinvestments, and shall not exceed $500,000 per taxable year for capitalinvestments. Such credit shall be first allowed for the taxable year in whichthe qualified investment was completed or made if the qualified investmentwas a capital investment. For all qualified investments, before any credit isallowed under this section, the Virginia Economic Development Partnershipshall review, evaluate and report to the Tobacco Indemnification andCommunity Revitalization Commission upon the taxpayer's proposed capitalinvestments, detailing how such qualified investment will be spent in atobacco-dependent locality. The credit provided under this section shall thenfirst be allowed for the taxable year in which the Commission finds that suchqualified investment was spent in a tobacco-dependent locality. The amount ofcredit allowed shall not exceed the tax imposed for the taxable year. Anycredit not usable for the taxable year because of this limitation may becarried over for the next ten succeeding taxable years. No credit shall becarried back to a preceding taxable year. If a taxpayer that is subject tothe tax limitation imposed pursuant to this subsection is allowed anothercredit pursuant to any other section of the Code of Virginia, or has a creditcarryover from a preceding taxable year, such taxpayer shall be considered tohave first utilized any credit allowed that does not have a carryoverprovision, and then any credit that is carried forward from a precedingtaxable year, prior to the utilization of any credit allowed pursuant to thissection.
C. The tax credit established in this section may be claimed to the extentmoneys from the Tobacco Indemnification and Community Revitalization Fund,created in § 3.2-3106, are deposited into the Technology Initiative inTobacco-Dependent Localities Fund, established under § 58.1-439.15, for thepurpose of funding this credit. If the amount of credits otherwise allowableunder this section exceed the amount deposited in the Fund for a fiscal year,such credits shall be allocated to taxpayers on a pro rata basis by theDepartment of Taxation.
D. In the case of a qualified investment other than a capital investment,unless the taxpayer transfers the equity received in connection with suchinvestment as a result of (i) the liquidation of the information technologyor biotechnology company issuing such equity, (ii) the merger, consolidationor other acquisition of such business with or by a party not affiliated withsuch business, or (iii) the death of the taxpayer, any taxpayer that fails tohold such equity for at least five full calendar years following the calendaryear for which a tax credit for such investment is allowed pursuant to thissection shall forfeit both used and unused tax credits and shall pay theDepartment of Taxation a penalty equal to all of the tax credits allowed tosuch taxpayer pursuant to this section, except for credit allowed for acapital investment, with interest at the rate of one percent per month,compounded monthly, from the date the tax credits were allocated to thetaxpayer. Any amount received under this subsection shall be deposited intothe Technology Initiative in Tobacco-Dependent Localities Fund.
E. A taxpayer who claims the credit for a qualified investment under thissection may not use such qualified investment as the basis for claiming anyother credit provided under the Code of Virginia.
F. For purposes of this section, the amount of any credit attributable to apartnership, electing small business corporation (S corporation), or limitedliability company shall be allocated to the individual partners, shareholdersor members, respectively, in proportion to their ownership or interest insuch business entities.
§ 58.1-439.13. Tax credit for investing in technology industries intobacco-dependent localities.
A. For purposes of this section:
"Biotechnology company" means a taxpayer that (i) has paid or incurredqualified research expenses for research, development, production, orprovision of biotechnology for the purpose of developing or providingproducts or processes for specific commercial or public purposes, including,but not limited to, medical, pharmaceutical, nutritional, and otherhealth-related purposes; agricultural purposes; or environmental purposes,(ii) conducts pilot scale manufacturing in Virginia, or (iii) providesservices or products necessary for such research, development, production, orprovision.
"Capital investment" means an investment in real property, personalproperty, or both, by an information technology or biotechnology company thatis capitalized by such company.
"Equity" has the same meaning as that term is defined in § 58.1-339.4.
"Qualified investment" means a cash investment in an information technologyor biotechnology company in the form of equity or subordinated debt; however,an investment shall not be qualified if the taxpayer who holds suchinvestment, or any of such taxpayer's family members, or any entityaffiliated with such taxpayer, receives or has received compensation fromsuch company in exchange for services provided to such business as anemployee, officer, director, manager, independent contractor or otherwise inconnection with or within one year before or after the date of suchinvestment. For the purposes hereof, reimbursement of reasonable expensesincurred shall not be deemed to be compensation.
A qualified investment shall also include a capital investment.
"Qualified research expenses" means qualified research expenses as definedin § 41 of the Internal Revenue Code of 1986, 26 U.S.C. § 41, as in effect onJune 30, 1992, in the fields of advanced computing, advanced materials,biotechnology, electronic device technology, environmental technology, ormedical device technology.
"Subordinated debt" has the same meaning as that term is defined in §58.1-339.4.
"Tobacco-dependent locality" means those Virginia localities that havetraditionally economically depended on tobacco and shall be identified by theTobacco Indemnification and Community Revitalization Commission.
B. For taxable years beginning on and after January 1, 2000, but beforeJanuary 1, 2010, a taxpayer shall be allowed a credit against the taxesimposed for such taxable years by Articles 2 (§ 58.1-320 et seq.), 6 (§58.1-360 et seq.), and 10 (§ 58.1-400 et seq.) of this chapter in the amountequal to fifty percent of the qualified investment in an informationtechnology or biotechnology company located in a tobacco-dependent locality.The amount of credit allowed to a taxpayer under this section shall notexceed $500,000 in aggregate for qualified investments other than capitalinvestments, and shall not exceed $500,000 per taxable year for capitalinvestments. Such credit shall be first allowed for the taxable year in whichthe qualified investment was completed or made if the qualified investmentwas a capital investment. For all qualified investments, before any credit isallowed under this section, the Virginia Economic Development Partnershipshall review, evaluate and report to the Tobacco Indemnification andCommunity Revitalization Commission upon the taxpayer's proposed capitalinvestments, detailing how such qualified investment will be spent in atobacco-dependent locality. The credit provided under this section shall thenfirst be allowed for the taxable year in which the Commission finds that suchqualified investment was spent in a tobacco-dependent locality. The amount ofcredit allowed shall not exceed the tax imposed for the taxable year. Anycredit not usable for the taxable year because of this limitation may becarried over for the next ten succeeding taxable years. No credit shall becarried back to a preceding taxable year. If a taxpayer that is subject tothe tax limitation imposed pursuant to this subsection is allowed anothercredit pursuant to any other section of the Code of Virginia, or has a creditcarryover from a preceding taxable year, such taxpayer shall be considered tohave first utilized any credit allowed that does not have a carryoverprovision, and then any credit that is carried forward from a precedingtaxable year, prior to the utilization of any credit allowed pursuant to thissection.
C. The tax credit established in this section may be claimed to the extentmoneys from the Tobacco Indemnification and Community Revitalization Fund,created in § 3.2-3106, are deposited into the Technology Initiative inTobacco-Dependent Localities Fund, established under § 58.1-439.15, for thepurpose of funding this credit. If the amount of credits otherwise allowableunder this section exceed the amount deposited in the Fund for a fiscal year,such credits shall be allocated to taxpayers on a pro rata basis by theDepartment of Taxation.
D. In the case of a qualified investment other than a capital investment,unless the taxpayer transfers the equity received in connection with suchinvestment as a result of (i) the liquidation of the information technologyor biotechnology company issuing such equity, (ii) the merger, consolidationor other acquisition of such business with or by a party not affiliated withsuch business, or (iii) the death of the taxpayer, any taxpayer that fails tohold such equity for at least five full calendar years following the calendaryear for which a tax credit for such investment is allowed pursuant to thissection shall forfeit both used and unused tax credits and shall pay theDepartment of Taxation a penalty equal to all of the tax credits allowed tosuch taxpayer pursuant to this section, except for credit allowed for acapital investment, with interest at the rate of one percent per month,compounded monthly, from the date the tax credits were allocated to thetaxpayer. Any amount received under this subsection shall be deposited intothe Technology Initiative in Tobacco-Dependent Localities Fund.
E. A taxpayer who claims the credit for a qualified investment under thissection may not use such qualified investment as the basis for claiming anyother credit provided under the Code of Virginia.
F. For purposes of this section, the amount of any credit attributable to apartnership, electing small business corporation (S corporation), or limitedliability company shall be allocated to the individual partners, shareholdersor members, respectively, in proportion to their ownership or interest insuch business entities.
