Form Cec Virginia Cigarette Export Credit Computation Schedule Page 2
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1
2INSTRUCTIONS FOR PREPARING FORM CEC
APPLICATION FOR VIRGINIA CIGARETTE EXPORT CREDIT
General Information
Virginia income tax return (Form 500). Enter the credit
amount on line 10 of Form 500 and attach a copy of your
Cigarette Export Credit
certifi cation letter to the return. In addition, please write
This credit may be claimed for taxable years beginning on
“Cigarette Export Credit” on line 10. The amount of this credit
and after January 1, 2006, but before January 1, 2016, by
included on Line 10 cannot exceed 50% of the liability on
any C-corporation that manufactures cigarettes in Virginia
Line 9. If you have other credits on Schedule CR, include
and exports cigarettes to a foreign country. Businesses may
this credit in the total claimed on Line 10. The amount
apply for reservation of the credit using Form CEC. The
claimed on Line 10 cannot exceed 50% of the liability after
business must reapply each year for the credit. To qualify
all other credits claimed on Schedule CR.
the business must (1) have manufactured cigarettes in
Virginia and (2) have current year export volume of at least
IMPORTANT
50% of the base year (2004) export volume.
Taxpayers who do not receive notifi cation of allowable
credit amounts before their Virginia income tax return due
The credit is a designated rate per 1,000 cigarettes of the
date must qualify for the automatic extension or fi le their
current year export volume based on the ratio of current year
regular return without the credit and then fi le an amended
export volume to base year export volume. The Virginia
tax return after receipt of notifi cation to claim the tax credit.
Department of Taxation may only grant $6 million of export
Credits can only be claimed for specifi ed year and cannot
credits each year.
be carried forward.
When to Submit Application
Questions?
Submit Form CEC to the Virginia Department of Taxation
Visit our website: to obtain Form
no later than April 1 of the subsequent year such exports
CEC. For assistance,
call 804-786-2992.
are shipped. Applications received after April 1 are not
eligible for the credit.
What to Attach
Line by Line Instructions
Attach the following items to Form CEC:
Line 1 Enter the number of cigarettes manufactured
in Virginia and exported during the “base year”
A listing of the corporation’s monthly export volumes
(2004).
as reported to the Alcohol and Tobacco Tax and Trade
Bureau.
Line 2 Current Year Export Volume
Where to File
Enter the number of cigarettes manufactured in
Mail the completed Form CEC and attachments to:
Virginia and exported during 2006.
Virginia Department of Taxation
Line 3 Current-to-Base-Year Export Percentage
ATTN: Tax Credit Unit
Divide line 2 by line 1 and enter result to two places.
P.O. Box 715
Example: .6734 = .67
Richmond, VA 23218-0715
If the amount on line 3 is less than .50, no credit is
or
available. If the amount on line 3 is .50 or greater,
you may fax it to 804-786-2800.
go to line 4.
What to Expect from the Department of Taxation
Line 4 Divide line 2 by 1,000.
The Virginia Department of Taxation will review all
Line 5 Enter the Credit Factor from the Credit Table
applications for completeness and notify taxpayers of any
Line 6 Multiply line 4 by the Credit Factor on line 5.
errors by June 1. If any additional information is needed, it
must be provided no later than June 15 in order for the exports
You must also attach a schedule of exports by month
to be considered for the tax credit. All eligible taxpayers will
as reported to the Alcohol and Tobacco Tax and Trade
be notifi ed by June 30 as to the allowable credit amount that
Bureau.
may be claimed for the qualifi ed export. If the total eligible
Signature and Verifi cation
credit requests received exceeds the Commonwealth’s
The return must be signed by the president, vice-president,
annual $6 million limitation, each taxpayer shall be granted
treasurer, assistant treasurer, chief accounting offi cer, or
a pro rata amount as determined by the Department. If the
other offi cer duly authorized to act. If an accountant who is
Department determines that any allocated credits cannot be
not a full-time offi cer or employee of the corporation prepared
used by the Taxpayer, the allocation of unusable credit will
the return, or assisted in its preparation, give the name and
be cancelled and the credit reallocated to other applicants
address of the accountant. (Sec. 58.1-447.)
pro rata.
This credit request must be fi led with the
What Does the Taxpayer Need to Do
Virginia Department of Taxation no later than
Upon receiving notifi cation of the allowable credit amount,
April 1
taxpayers may claim the allowable credit amount on their
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