Form 306 - Coalfield Employment Enhancement Tax Credit

Form 306

1999

COALFIELD EMPLOYMENT ENHANCEMENT TAX CREDIT

VA D

EPARTMENT OF

AXATION

For calendar year 1999. FISCAL YEAR filers: Enter beginning date ___________, _____ and ending date ____________, _____ and check here.

Federal Employer Identification Number

Name of Company

IRGINIA

CCOUNT

- OR - Social Security Number

The Coalfield Employment Enhancement Tax Credit provides a composite tax credit for coal mined in Virginia and coalbed methane gas

produced in Virginia based on a per ton or per million BTU rate and an employment factor. This credit will be computed and reported on the

1996 through 2001 Virginia income tax returns and claimed on the 1999 through 2008 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 filed, 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: ninety percent will be refunded directly and the remaining ten percent will be deposited in a regional

economic development fund administered by the Coalfields Economic Development Authority.

PART I - QUALIFICATIONS.

(See instructions.)

” Coal Credit: Check this box if you meet all qualifications for this credit (See Form 306 instructions, Part I).

” Coalbed Methane Credit: Check this box if you meet the qualification for this credit (See Form 306 instructions, Part I).

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.)

Complete Part II to show the total tonnage of each type of qualifying coal for the taxable year on which the Coalfield Employment

Enhancement Tax Credit is to be computed in Part III. See instructions.

Col. A

Col. B

Col. C

Underground

Surface

seam 36" or less

seam over 36"

mined

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 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ______________

____________

__________

3. Subtract line 2 from line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ______________

____________

__________

Enter the result below in the ?Number of tons” sold column on:

Part III, Line 1

Part III, Line 2

Part III, Line 3

PART III - CREDIT COMPUTATION

A. COAL CREDIT BASE (see instructions for definitions). 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 certificate to the purchaser, complete Schedule 306A. Do not

include amounts from Schedule 306A, Column E, in this section.

Number of tons sold

Credit earned

Underground mining method: Seam thickness 36" or less:

Enter amount from Part II, line 3, Col. A, above . . . . . . . . . . . 1. ______________

$2.00 = _______________

Underground mining method: Seam thickness over 36"

Enter amount from Part II, line 3, Col. B, above . . . . . . . . . . . 2. ______________

$1.00 = _______________

Coal mined using surface mining methods

Enter amount from Part II, line 3, Col. C, above . . . . . . . . . . . 3. ______________

$0.40 = _______________

TOTAL CREDIT BASE (add lines 1, 2 and 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. _______________

B. EMPLOYMENT FACTOR (see instructions for definitions)

Total number of Virginia coal mining jobs for the calendar year ending within the taxable year . . . . . . . . . . 5. _______________

Total number of Virginia coal mining jobs for the preceding calendar year . . . . . . . . . . . . . . . . . . . . . . . . . 6. _______________

EMPLOYMENT FACTOR (divide line 5 by line 6) Do not enter more than 100% . . . . . . . . . . . . . . . . . . . . 7. ____________ %

C. CREDIT COMPUTATIONS AND CREDIT DISTRIBUTIONS EARNED FOR 1999 (report for credit on 2002 & 2008 returns)

8. Tentative coal mining credit (multiply line 4 by the percentage on line 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. _______________

9. Coalbed methane gas producer credit ($.01 per million BTU of coalbed methane gas sold in Virginia) . . . . . . . . 9. _______________

10. Credit distributions from pass-through entities (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. _______________

11. 1999 Coalfield Employment Enhancement Tax Credit earned: Enter the total of lines 8, 9 and 10 here* . . . . . . 11. _______________

* also enter this amount on the Coalfield Enhancement Tax Credit earned line of your tax return or credit schedule

D. APPLICATION OF 1996 COALFIELD EMPLOYMENT ENHANCEMENT TAX CREDIT EARNED [from 1999 Sch. 306B (Form 306)]

12. Full tax credit: Enter amount from 1999 Schedule 306B (Form 306), line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. _______________

13. Excess tax credit: Enter amount from 1999 Schedule 306B (Form 306), line 10(b). . . . . . . . . . . . . . . . . . . . . . . 13. _______________

14. Total 1996 credit allowable this year: Add lines 12 and 13. Enter here and on the coalfield employment enhancement

tax credit line of the credit schedule for your income tax return, Schedule CR or Schedule 500CR. . . . . . . . . . . 14. _______________

Coalfield Employment Enhancement Tax Credit to report on your 2002 and 2008 income tax returns: Complete the lines below as

directed.

This credit, computed for taxable year 1999, will be allowed as a credit on future income tax returns (see instructions)

Taxable year

Claim on return

Amount to claim

Taxable year to

Amount to claim

earned