§ 58.1-439.14. Tax credit for research and development activity occurring intobacco-dependent localities.
A. As used in this section:
"Eligible research and development activity" means qualified researchexpenses as defined in § 41 of the Internal Revenue Code of 1986, 26 U.S.C. §41, as in effect on June 30, 1992, in the fields of advanced computing,advanced materials, biotechnology, electronic device technology,environmental technology, or medical device technology, or other technologyfield, when such expenses are paid or incurred by a taxpayer for suchactivity occurring at the taxpayer's place of business in a tobacco-dependentlocality of the Commonwealth.
"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 by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and 10 (§58.1-400 et seq.) of this chapter as set forth in this section. The amount ofcredit allowed pursuant to this section shall be equal to fifty percent ofthe amount paid or incurred by a taxpayer for an eligible research anddevelopment activity during the taxable year.
C. A taxpayer may claim the credit for the taxable year in which the eligibleresearch and development activity occurred. No taxpayer shall be eligible toclaim a credit of more than $500,000 per taxable year. The amount of creditallowed shall not exceed the tax imposed for the taxable year. Any credit notusable for the taxable year because of such limitation may be, to the extentusable and subject to subsections D and E, carried over for the next tensucceeding taxable years. No credit shall be carried back to a precedingtaxable year. If a taxpayer that is subject to the tax limitation imposedpursuant to this subsection is allowed another credit pursuant to any othersection of the Code of Virginia, or has a credit carryover from a precedingtaxable year, such taxpayer shall be considered to have first utilized anycredit allowed that does not have a carryover provision, and then any creditthat is carried forward from a preceding taxable year, prior to theutilization of any credit allowed pursuant to this section.
D. 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.
E. Tax credit redemption and transfer.
If the taxpayer has no state tax liability for two consecutive taxable yearsfor which credit is otherwise allowable, the credit amount applicable to suchtaxable years may be redeemable by the Tax Commissioner on behalf of theCommonwealth for seventy-five percent of the face value within ninety daysafter the taxpayer has filed the applicable income tax return for the secondsuch taxable year. If the Commonwealth does not redeem the tax credit or uponthe taxpayer's election, such tax credit shall be transferable by sale.
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.
G. A taxpayer who claims the credit for eligible research and developmentactivity under this section may not use such research and developmentactivity as the basis for claiming any other credit provided under the Codeof Virginia.
§ 58.1-439.14. Tax credit for research and development activity occurring intobacco-dependent localities.
A. As used in this section:
"Eligible research and development activity" means qualified researchexpenses as defined in § 41 of the Internal Revenue Code of 1986, 26 U.S.C. §41, as in effect on June 30, 1992, in the fields of advanced computing,advanced materials, biotechnology, electronic device technology,environmental technology, or medical device technology, or other technologyfield, when such expenses are paid or incurred by a taxpayer for suchactivity occurring at the taxpayer's place of business in a tobacco-dependentlocality of the Commonwealth.
"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 by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and 10 (§58.1-400 et seq.) of this chapter as set forth in this section. The amount ofcredit allowed pursuant to this section shall be equal to fifty percent ofthe amount paid or incurred by a taxpayer for an eligible research anddevelopment activity during the taxable year.
C. A taxpayer may claim the credit for the taxable year in which the eligibleresearch and development activity occurred. No taxpayer shall be eligible toclaim a credit of more than $500,000 per taxable year. The amount of creditallowed shall not exceed the tax imposed for the taxable year. Any credit notusable for the taxable year because of such limitation may be, to the extentusable and subject to subsections D and E, carried over for the next tensucceeding taxable years. No credit shall be carried back to a precedingtaxable year. If a taxpayer that is subject to the tax limitation imposedpursuant to this subsection is allowed another credit pursuant to any othersection of the Code of Virginia, or has a credit carryover from a precedingtaxable year, such taxpayer shall be considered to have first utilized anycredit allowed that does not have a carryover provision, and then any creditthat is carried forward from a preceding taxable year, prior to theutilization of any credit allowed pursuant to this section.
D. 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.
E. Tax credit redemption and transfer.
If the taxpayer has no state tax liability for two consecutive taxable yearsfor which credit is otherwise allowable, the credit amount applicable to suchtaxable years may be redeemable by the Tax Commissioner on behalf of theCommonwealth for seventy-five percent of the face value within ninety daysafter the taxpayer has filed the applicable income tax return for the secondsuch taxable year. If the Commonwealth does not redeem the tax credit or uponthe taxpayer's election, such tax credit shall be transferable by sale.
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.
G. A taxpayer who claims the credit for eligible research and developmentactivity under this section may not use such research and developmentactivity as the basis for claiming any other credit provided under the Codeof Virginia.
§ 58.1-439.14. Tax credit for research and development activity occurring intobacco-dependent localities.
A. As used in this section:
"Eligible research and development activity" means qualified researchexpenses as defined in § 41 of the Internal Revenue Code of 1986, 26 U.S.C. §41, as in effect on June 30, 1992, in the fields of advanced computing,advanced materials, biotechnology, electronic device technology,environmental technology, or medical device technology, or other technologyfield, when such expenses are paid or incurred by a taxpayer for suchactivity occurring at the taxpayer's place of business in a tobacco-dependentlocality of the Commonwealth.
"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 by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and 10 (§58.1-400 et seq.) of this chapter as set forth in this section. The amount ofcredit allowed pursuant to this section shall be equal to fifty percent ofthe amount paid or incurred by a taxpayer for an eligible research anddevelopment activity during the taxable year.
C. A taxpayer may claim the credit for the taxable year in which the eligibleresearch and development activity occurred. No taxpayer shall be eligible toclaim a credit of more than $500,000 per taxable year. The amount of creditallowed shall not exceed the tax imposed for the taxable year. Any credit notusable for the taxable year because of such limitation may be, to the extentusable and subject to subsections D and E, carried over for the next tensucceeding taxable years. No credit shall be carried back to a precedingtaxable year. If a taxpayer that is subject to the tax limitation imposedpursuant to this subsection is allowed another credit pursuant to any othersection of the Code of Virginia, or has a credit carryover from a precedingtaxable year, such taxpayer shall be considered to have first utilized anycredit allowed that does not have a carryover provision, and then any creditthat is carried forward from a preceding taxable year, prior to theutilization of any credit allowed pursuant to this section.
D. 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.
E. Tax credit redemption and transfer.
If the taxpayer has no state tax liability for two consecutive taxable yearsfor which credit is otherwise allowable, the credit amount applicable to suchtaxable years may be redeemable by the Tax Commissioner on behalf of theCommonwealth for seventy-five percent of the face value within ninety daysafter the taxpayer has filed the applicable income tax return for the secondsuch taxable year. If the Commonwealth does not redeem the tax credit or uponthe taxpayer's election, such tax credit shall be transferable by sale.
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.
G. A taxpayer who claims the credit for eligible research and developmentactivity under this section may not use such research and developmentactivity as the basis for claiming any other credit provided under the Codeof Virginia.
