Form 306 Draft - Virginia Coal Related Refundable Tax Credits - 2006

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DRAFT 10/12/06
Form 306

2006 Virginia Coal Related
Refundable Tax Credits
Coalfi eld Employment Enhancement Tax Credit and
Virginia Coal Employment and Production Incentive Tax Credit
For calendar year 2006. FISCAL YEAR fi lers: Enter beginning date ___________, _____ and ending date ____________, _____ and check here.
Name of Company
FEIN or Social Security Number
The Coalfi eld Employment Enhancement Tax Credit provides a composite tax credit for coal mined in Virginia and coal bed methane gas produced in Virginia
based on a per ton or per million BTU rate and an employment factor. This credit will be earned and reported on the 1996 through 2014 Virginia income tax returns
and claimed on the 1999 through 2017 income tax returns based on the credit redemption schedule in the Form 306 instructions; it may not be claimed prior to
the 1999 return. If the credit amount exceeds the tax on the income tax return when fi led, the excess credit will be applied to any other taxes imposed by the State
of Virginia. The Department of Taxation will redeem any remaining credit as follows: 90% will be refunded directly and the remaining 10% will be deposited in a
regional economic development fund administered by the Coalfi elds Economic Development Authority. For credits earned for taxable years beginning on or after
January 1, 2002, the refundable excess will be reduced to 85% with the remaining 15% being deposited into the regional economic development fund.
The Virginia Coal Employment and Production Incentive Tax Credit may be allocated between a qualifying electricity generator and qualifying person with
an economic interest in coal. The allocation of this credit may not exceed $3 per ton. All credits earned on or after January 1, 2006 or prior to July 1, 2011 which
are allocated to persons with an economic interest in coal may be redeemed by the Tax Commissioner if the credits exceed the taxpayer’s state tax liability for
the applicable taxable year.
Part I - Qualifi cations (See instructions.)
Coal Credit: Check this box if you meet all qualifi cations for this credit.
Coal Bed Methane Credit: Check this box if you meet the qualifi cation for this credit.
Virginia Coal Employment and Production Incentive Tax Credit: Check this box if you meet the qualifi cations for this credit.
If you do not qualify directly for this credit, but qualify by receiving a credit distribution from a pass-through entity, go to Line 10.
PART II - Tons Of Coal Sold (Attach a separate schedule if additional space is needed).
Show the total tonnage of each type of qualifying coal for the taxable year on which the Coalfi eld Employment Enhancement Tax Credit is to be computed
in Part III. See instructions.
Col. A
Col. B
Col. C
Underground
Underground
Surface Mined
Seam 36” or Less
Seam over 36”
1. Enter the number of tons of qualifying coal sold during the taxable year.
2. Enter, from Schedule 306A, the number of tons of qualifying coal sold during
the taxable year for which the purchaser is eligible for a Coal Cogenerator credit
or the Virginia Coal Employment and Production Incentive Tax Credit.
3. Subtract Line 2 from Line 1.
Enter the result below in the “Number of Tons Sold” column:
Part III - Credit Computation
A. Coal Credit Base (see instructions for defi nitions). Enter the qualifying tonnage on which the coal credit base is computed. If claiming this credit and you also sold
qualifying tonnage and issued a certifi cate to the purchaser, complete Schedule 306A. Do not include amounts from Schedule 306A, Column E, in this section.
Number of Tons Sold
Credit Earned
1. Underground mining method: Seam thickness 36” or less:
Enter amount from Part II, Line 3, Col. A, above.
1.
X
$2.00
=
2. Underground mining method: Seam thickness over 36”
Enter amount from Part II, Line 3, Col. B, above.
2.
X
$1.00
=
3. Coal mined using surface mining method
Enter amount from Part II, Line 3, Col. C, above.
3.
X
$0.40
=
4. Total Credit Base (add Lines 1, 2 and 3)
4.
B. Employment Factor (see instructions for defi nitions)
5. Total number of Virginia coal mining jobs for the calendar year ending within the taxable year.
5.
6. Total number of Virginia coal mining jobs for the preceding calendar year.
6.
7. Employment Factor (divide Line 5 by Line 6). Do not enter more than 100%.
7.
%
C. Credit Computations And Credit Distributions Earned For 2006 (report for credit on 2009 return)
8. Tentative coal mining credit (multiply Line 4 by the percentage on Line 7).
8.
9. Coal bed methane gas producer credit ($.01 per million BTU of coal bed methane gas sold in Virginia).
9.
10. Credit distributions from pass-through entities (see instructions).
10.
11. 2006 Coalfi eld Employment Enhancement Tax Credit earned. Enter the total of Lines 8, 9 and 10 here*.
11.
* Also enter this amount on the Coalfi eld Enhancement Tax Credit earned line of your tax return or credit schedule.
D. Application Of Coal Related Tax Credits Earned [from 2006 Sch. 306B (Form 306)]
12. (a) Full tax credit: Enter amount from 2006 Schedule 306B (Form 306), Line 9(a) or 9(b).
12(a).
(b) Full tax credit: Enter amount from 2006 Schedule 306B (Form 306), Line 14(a) or 14(b).
12(b).
13. (a) Excess tax credit (85%): Enter amount from 2006 Schedule 306B (Form 306), Line 11.
13(a).
(b) Excess tax credit (90%): Enter amount from 2006 Schedule 306B (Form 306), Line 16.
13(b).
14. Total Credit Allowable This Year: Add Lines 12(a), 12(b), 13(a) and 13(b).
14.
Va. Dept. of Taxation
306 F
2601152
Rev 12/06
Page 1

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