§ 58.1-513. Limitations; transfer of credit; gain or loss from tax credit.
A. Any taxpayer claiming a tax credit under this article shall not claim acredit under any similar Virginia law for costs related to the same project.To the extent a credit is taken in accordance with this article, nosubtraction allowed for the gain on the sale of (i) land dedicated toopen-space use or (ii) an easement dedicated to open-space use undersubsection C of § 58.1-322 shall be allowed for three years following theyear in which the credit is taken. Any building which serves as the basis, inwhole or in part, of a tax credit under this article shall not serve as thebasis of the tax credit allowed under § 58.1-339.2 for a period of five yearsfollowing the donation on which the credit is based; and any building whichserves as the basis for the tax credit allowed under § 58.1-339.2 shall notserve as the basis, in whole or in part, for a tax credit under this articlefor a period of five years following the completion of the rehabilitationproject on which the credit is based.
B. Any tax credits that arise under this article from the donation of land oran interest in land made by a pass-through tax entity such as a trust,estate, partnership, limited liability company or partnership, limitedpartnership, subchapter S corporation or other fiduciary shall be used eitherby such entity if it is the taxpayer on behalf of such entity or by themember, manager, partner, shareholder or beneficiary, as the case may be, inproportion to their interest in such entity in the event that income,deductions and tax liability pass through such entity to such member,manager, partner, shareholder or beneficiary or as set forth in the agreementof said entity. Such tax credits shall not be claimed by both the entity andthe member, manager, partner, shareholder or beneficiary for the samedonation.
C. 1. Any taxpayer holding a credit under this article may transfer unusedbut otherwise allowable credit for use by another taxpayer on Virginia incometax returns. A taxpayer who transfers any amount of credit under this articleshall file a notification of such transfer to the Department in accordancewith procedures and forms prescribed by the Tax Commissioner.
2. A fee of two percent of the value of the donated interest shall be imposedupon any transfer arising from the sale by any taxpayer of credits under thisarticle and upon the distribution of a portion of credits under this articleto a member, manager, partner, shareholder or beneficiary pursuant tosubsection B. Revenues generated by such fees first shall be used by theDepartment of Taxation and the Department of Conservation and Recreation fortheir costs in implementing this article but in no event shall such amountexceed 50 percent of the total revenue generated by the fee on an annualbasis. The remainder of such revenues shall be transferred to the VirginiaLand Conservation Fund for distribution to the public or private conservationagencies or organizations that are responsible for enforcing the conservationand preservation purposes of the donated interests. Distribution of suchrevenues shall be made annually by the Virginia Land Conservation Foundationproportionally based on a three-year average of the number of donatedinterests accepted by the public or private conservation agencies ororganizations during the immediately preceding three-year period.
D. To the extent included in and not otherwise subtracted from federaladjusted gross income pursuant to § 58.1-322 or federal taxable incomepursuant to § 58.1-402, there shall be subtracted any amount of gain orincome recognized by a taxpayer on the application of a tax credit under thisarticle against a Virginia income tax liability.
E. The transfer of the credit and its application against a tax liabilityshall not create gain or loss for the transferor or the transferee of suchcredit.
F. A pass-through tax entity, such as a partnership, limited liabilitycompany or Subchapter S corporation, may appoint a tax mattersrepresentative, who shall be a general partner, member/manager orshareholder, and register that representative with the Tax Commissioner. TheTax Commissioner shall be entitled to deal with the tax mattersrepresentative as representative of the taxpayers to whom credits have beenallocated or transferred by the entity under this article with respect tothose credits. In the event a pass-through tax entity allocates or transferstax credits arising under this article to its partners, members orshareholders and the allocated or transferred credits shall be disallowed, inwhole or in part, such that an assessment of additional tax against ataxpayer shall be made, the Tax Commissioner shall first make written demandfor payment of any additional tax, together with interest and penalties, fromthe tax matters representative. In the event such payment demand is notsatisfied, the Tax Commissioner shall proceed to collection against thetaxpayers in accordance with the provisions of Chapter 18 (§ 58.1-1800 etseq.).
(1999, cc. 968, 983; 2002, c. 347; 2004, c. 635; 2005, c. 255; 2006, Sp.Sess. I, cc. 4, 5; 2010, cc. 229, 248.)
§ 58.1-513. Limitations; transfer of credit; gain or loss from tax credit.
A. Any taxpayer claiming a tax credit under this article shall not claim acredit under any similar Virginia law for costs related to the same project.To the extent a credit is taken in accordance with this article, nosubtraction allowed for the gain on the sale of (i) land dedicated toopen-space use or (ii) an easement dedicated to open-space use undersubsection C of § 58.1-322 shall be allowed for three years following theyear in which the credit is taken. Any building which serves as the basis, inwhole or in part, of a tax credit under this article shall not serve as thebasis of the tax credit allowed under § 58.1-339.2 for a period of five yearsfollowing the donation on which the credit is based; and any building whichserves as the basis for the tax credit allowed under § 58.1-339.2 shall notserve as the basis, in whole or in part, for a tax credit under this articlefor a period of five years following the completion of the rehabilitationproject on which the credit is based.
B. Any tax credits that arise under this article from the donation of land oran interest in land made by a pass-through tax entity such as a trust,estate, partnership, limited liability company or partnership, limitedpartnership, subchapter S corporation or other fiduciary shall be used eitherby such entity if it is the taxpayer on behalf of such entity or by themember, manager, partner, shareholder or beneficiary, as the case may be, inproportion to their interest in such entity in the event that income,deductions and tax liability pass through such entity to such member,manager, partner, shareholder or beneficiary or as set forth in the agreementof said entity. Such tax credits shall not be claimed by both the entity andthe member, manager, partner, shareholder or beneficiary for the samedonation.
C. 1. Any taxpayer holding a credit under this article may transfer unusedbut otherwise allowable credit for use by another taxpayer on Virginia incometax returns. A taxpayer who transfers any amount of credit under this articleshall file a notification of such transfer to the Department in accordancewith procedures and forms prescribed by the Tax Commissioner.
2. A fee of two percent of the value of the donated interest shall be imposedupon any transfer arising from the sale by any taxpayer of credits under thisarticle and upon the distribution of a portion of credits under this articleto a member, manager, partner, shareholder or beneficiary pursuant tosubsection B. Revenues generated by such fees first shall be used by theDepartment of Taxation and the Department of Conservation and Recreation fortheir costs in implementing this article but in no event shall such amountexceed 50 percent of the total revenue generated by the fee on an annualbasis. The remainder of such revenues shall be transferred to the VirginiaLand Conservation Fund for distribution to the public or private conservationagencies or organizations that are responsible for enforcing the conservationand preservation purposes of the donated interests. Distribution of suchrevenues shall be made annually by the Virginia Land Conservation Foundationproportionally based on a three-year average of the number of donatedinterests accepted by the public or private conservation agencies ororganizations during the immediately preceding three-year period.
D. To the extent included in and not otherwise subtracted from federaladjusted gross income pursuant to § 58.1-322 or federal taxable incomepursuant to § 58.1-402, there shall be subtracted any amount of gain orincome recognized by a taxpayer on the application of a tax credit under thisarticle against a Virginia income tax liability.
E. The transfer of the credit and its application against a tax liabilityshall not create gain or loss for the transferor or the transferee of suchcredit.
F. A pass-through tax entity, such as a partnership, limited liabilitycompany or Subchapter S corporation, may appoint a tax mattersrepresentative, who shall be a general partner, member/manager orshareholder, and register that representative with the Tax Commissioner. TheTax Commissioner shall be entitled to deal with the tax mattersrepresentative as representative of the taxpayers to whom credits have beenallocated or transferred by the entity under this article with respect tothose credits. In the event a pass-through tax entity allocates or transferstax credits arising under this article to its partners, members orshareholders and the allocated or transferred credits shall be disallowed, inwhole or in part, such that an assessment of additional tax against ataxpayer shall be made, the Tax Commissioner shall first make written demandfor payment of any additional tax, together with interest and penalties, fromthe tax matters representative. In the event such payment demand is notsatisfied, the Tax Commissioner shall proceed to collection against thetaxpayers in accordance with the provisions of Chapter 18 (§ 58.1-1800 etseq.).
(1999, cc. 968, 983; 2002, c. 347; 2004, c. 635; 2005, c. 255; 2006, Sp.Sess. I, cc. 4, 5; 2010, cc. 229, 248.)
§ 58.1-513. Limitations; transfer of credit; gain or loss from tax credit.
A. Any taxpayer claiming a tax credit under this article shall not claim acredit under any similar Virginia law for costs related to the same project.To the extent a credit is taken in accordance with this article, nosubtraction allowed for the gain on the sale of (i) land dedicated toopen-space use or (ii) an easement dedicated to open-space use undersubsection C of § 58.1-322 shall be allowed for three years following theyear in which the credit is taken. Any building which serves as the basis, inwhole or in part, of a tax credit under this article shall not serve as thebasis of the tax credit allowed under § 58.1-339.2 for a period of five yearsfollowing the donation on which the credit is based; and any building whichserves as the basis for the tax credit allowed under § 58.1-339.2 shall notserve as the basis, in whole or in part, for a tax credit under this articlefor a period of five years following the completion of the rehabilitationproject on which the credit is based.
B. Any tax credits that arise under this article from the donation of land oran interest in land made by a pass-through tax entity such as a trust,estate, partnership, limited liability company or partnership, limitedpartnership, subchapter S corporation or other fiduciary shall be used eitherby such entity if it is the taxpayer on behalf of such entity or by themember, manager, partner, shareholder or beneficiary, as the case may be, inproportion to their interest in such entity in the event that income,deductions and tax liability pass through such entity to such member,manager, partner, shareholder or beneficiary or as set forth in the agreementof said entity. Such tax credits shall not be claimed by both the entity andthe member, manager, partner, shareholder or beneficiary for the samedonation.
C. 1. Any taxpayer holding a credit under this article may transfer unusedbut otherwise allowable credit for use by another taxpayer on Virginia incometax returns. A taxpayer who transfers any amount of credit under this articleshall file a notification of such transfer to the Department in accordancewith procedures and forms prescribed by the Tax Commissioner.
2. A fee of two percent of the value of the donated interest shall be imposedupon any transfer arising from the sale by any taxpayer of credits under thisarticle and upon the distribution of a portion of credits under this articleto a member, manager, partner, shareholder or beneficiary pursuant tosubsection B. Revenues generated by such fees first shall be used by theDepartment of Taxation and the Department of Conservation and Recreation fortheir costs in implementing this article but in no event shall such amountexceed 50 percent of the total revenue generated by the fee on an annualbasis. The remainder of such revenues shall be transferred to the VirginiaLand Conservation Fund for distribution to the public or private conservationagencies or organizations that are responsible for enforcing the conservationand preservation purposes of the donated interests. Distribution of suchrevenues shall be made annually by the Virginia Land Conservation Foundationproportionally based on a three-year average of the number of donatedinterests accepted by the public or private conservation agencies ororganizations during the immediately preceding three-year period.
D. To the extent included in and not otherwise subtracted from federaladjusted gross income pursuant to § 58.1-322 or federal taxable incomepursuant to § 58.1-402, there shall be subtracted any amount of gain orincome recognized by a taxpayer on the application of a tax credit under thisarticle against a Virginia income tax liability.
E. The transfer of the credit and its application against a tax liabilityshall not create gain or loss for the transferor or the transferee of suchcredit.
F. A pass-through tax entity, such as a partnership, limited liabilitycompany or Subchapter S corporation, may appoint a tax mattersrepresentative, who shall be a general partner, member/manager orshareholder, and register that representative with the Tax Commissioner. TheTax Commissioner shall be entitled to deal with the tax mattersrepresentative as representative of the taxpayers to whom credits have beenallocated or transferred by the entity under this article with respect tothose credits. In the event a pass-through tax entity allocates or transferstax credits arising under this article to its partners, members orshareholders and the allocated or transferred credits shall be disallowed, inwhole or in part, such that an assessment of additional tax against ataxpayer shall be made, the Tax Commissioner shall first make written demandfor payment of any additional tax, together with interest and penalties, fromthe tax matters representative. In the event such payment demand is notsatisfied, the Tax Commissioner shall proceed to collection against thetaxpayers in accordance with the provisions of Chapter 18 (§ 58.1-1800 etseq.).
(1999, cc. 968, 983; 2002, c. 347; 2004, c. 635; 2005, c. 255; 2006, Sp.Sess. I, cc. 4, 5; 2010, cc. 229, 248.)
