Virginia Form Bru - Application For Barge And Rail Usage Tax Credit Page 3
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3Instructions for Application for Barge and Rail Usage Tax Credit
General Information
When to Submit Application
An income tax credit is allowed for transporting cargo containers
Form BRU and any supporting documentation must be completed
by barge and rail. The amount of the credit is $25 per 20-foot
and mailed no later than April 1 for credits earned the preceding year.
equivalent unit (TEU), 16 tons of noncontainerized or one unit of
For any application received without a postmark, the date received
roll-on/roll-off cargo moved by barge or rail rather than by trucks
by the Department will be used to determine if the application was
or other motor vehicles on Virginia’s highways. For purposes
received by the filing deadline.
of this credit, a 40-foot or 45-foot container is equivalent to two
Where to Submit Application
TEUs. Containers for which this credit is claimed must result from
a diversion of shipments from the Commonwealth’s highways. To
Submit Form BRU and attachments to the Department of Taxation,
receive a credit, an international trade facility is required to apply
ATTN: Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715
to the Department. No more than $500,000 in tax credits can be
or fax it to 804-774-3902.
issued in any fiscal year. If the amount of tax credits requested
What to Expect from the Department
exceeds $500,000, the credits will be allocated proportionately
among all qualified taxpayers. The Department will determine the
If the Department needs additional information we will contact you
allowable credit amount for the taxable year and provide a written
by May 1 and you will have until May 15 to respond. If you have
certification to each taxpayer.
not received acknowledgement of your application by May 31, call
804-786-2992.
Taxpayers can claim this credit against the Individual Income Tax,
the Corporate Income Tax, the Tax on Estates and Trusts, the Bank
The Department will issue the credit by June 30. If you have not
Franchise Tax, the Insurance Premiums License Tax, and the tax
received your credit certification by July 15, call 804-786-2992.
on public service corporations. Any unused tax credits may be
What Does the Taxpayer Need to Do
carried over for five taxable years. Any amount of credit attributable
Upon receiving notification of the allowable credit amount, taxpayers
to a partnership, S-corporation, or limited liability company shall
may claim the allowable credit amount on the applicable Virginia
be allocated to the individual partners, shareholders, or members,
income tax return and compute any carryover credit amount.
respectively, in proportion to their ownership or interest in the
business entity.
As an attachment to their return, a corporation must file Form
500CR; an individual must file Schedule CR; and a pass-through
For purposes of this credit, an “international trade facility” is
entity must file Form 502ADJ.
a company that is doing business in Virginia and is engaged in
port-related activities, including but not limited to warehousing,
IMPORTANT
distribution, freight forwarding and handling, and goods processing;
All business taxpayers should be registered with the Department
has the sole discretion and authority to move cargo in containers
before completing Form BRU. If you are not registered, complete
originating or terminating in Virginia; uses maritime port facilities
Form R-1.
located within the Commonwealth; and undertakes activities that
result in utilizing a barge or rail to move cargo containers rather
If the tax return upon which this credit will be claimed is due on or
than using trucks or other motor vehicles on a highway. To qualify
before May 1, you may need to either submit an extension payment
for this credit, an international trade facility must have an
for any tax due or file an amended return once you have received
ownership interest in the cargo and control the choice of
the credit certification.
transportation.
Pass-Through Entities
The credit is effective for taxable years beginning on and after
In order to allocate the credit to the partners, shareholders, or
January 1, 2011, but before January 1, 2017. No tax credits can
members, each pass-through entity must file Form PTE with
be issued after the fiscal year ending June 30, 2017.
the Department within 30 days after the credit is granted. This
Instructions for Lines 2 and 3
information should be sent to: Department of Taxation, Attn: Tax
Credit Unit, P.O. Box 715, Richmond, VA 23218-0715 OR you
For purposes of this credit, a unit of roll-on/roll-off cargo or 16
may fax it to 804-786-2800. Please do not do both.
tons of noncontainerized cargo is equivalent to one TEU. If you
are claiming this credit for noncontainerized cargo, convert the
Credit must be allocated among owners in proportion to each
tonnage to TEUs and enter the number of TEUs on Lines 2 and 3.
owner’s percentage of ownership or participation in the pass-
through entity.
What to Attach
All pass-through entities distributing this credit to their owners,
You must complete and attach your validation summaries (current
shareholders, partners or members must give each a Schedule VK-
and previous taxable years) from the VPA. Additionally, Schedule A
1, Owner’s Share of Income and Virginia Modifications and Credits.
should be submitted for shipments not listed on the VPA validation
summary or shipped through non-VPA owned ports. In the
Where to Get Help
“Container Size” column, indicate whether the container is a 20-foot,
Write the Virginia Department of Taxation, ATTN: Tax Credit Unit,
40-foot, or 45-foot container, or state the amount of noncontainerized
P. O. Box 715, Richmond, VA 23218-0715 or call 804-786-2992. If
cargo. For purposes of this credit, a 40-foot or 45-foot container
you need assistance completing the VPA Validation Report please
is equivalent to two TEUs, and a unit of roll-on/roll-off cargo or 16
call 757-391-6235 or you may email . For
tons of noncontainerized cargo is equivalent to one TEU. Copies of
assistance with the container and cargo verification process, contact
Schedule A can be submitted if additional space is needed.
the Virginia Port Authority at (757) 391-6235 or .
Taxpayers should retain all supporting documentation, such as
bills of lading that show the amount of cargo that was shipped and
the date of shipment.
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