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defined by the Virginia Department of Economic Development),

credits approved may not exceed $100,000 in any fiscal year .

the threshold is reduced from 50 to 25 . Credits will be

To be eligible for the credit: (1) the facility must be operated

recaptured proportionately if employment decreases during

under a license issued by the Virginia Department of Social

the five years following the initial credit year .

Services; (2) the building permit application for the facility must

be submitted after July 1, 1996; (3) the facility must be used

This nonrefundable credit is equal to $1,000 per qualifying

primarily by the children of the taxpayer’s employees; and (4)

new job in excess of the 50/25 job threshold in enterprise zones

the Tax Commissioner must approve the credit application prior

or economically distressed areas . This credit is spread over

to claiming the credit . To apply, submit a letter of application

two years for taxpayers whose credit year begins January 1,

that specifies the employer’s name, location of the facility and

2009 through December 31, 2014 . The credit only applies to

certification of items (1)-(3) above . Send the application to:

facilities where an announcement to expand or establish such a

Virginia Department of Taxation, Tax Credit Administration

facility was made on or after January 1, 1994 . The credit must

Unit, P.O. Box 715, Richmond, VA 23218-0715 . Applications

be claimed ratably beginning with the taxable year following

are approved in the order received . Approved applicants will

the year in which the facility is established or expanded, or the

receive an approval form from the department . To claim the

new qualifying jobs are added . Unused credits may be carried

credit, complete Section 1, Part 12, of the Schedule CR . This

forward for the next ten taxable years . A qualified business

credit is nonrefundable but excess credit may be carried forward

firm receiving an Enterprise Zone Job Creation Grant under

for three years .

Va. Code § 59 .1-547 shall not be eligible to receive a Major

Business Facility Job Tax Credit for any job used to qualify for

For additional information contact the Department of

the Enterprise Zone Job Creation Grant .

Taxation, Tax Credit Unit, P. O. Box 715, Richmond, VA

23218-0715 or call 804-786-2992 .

To apply for this credit, complete Form 304 . All applications

must be submitted to the Department of Taxation, Tax Credit

Low-Income Housing Tax Credit

Unit, P.O. Box 715, Richmond, VA 23218-0715 90 days prior

The Board of Housing and Community Development

to the due date of your return . A letter will be sent to certify

stopped approving Low-Income Housing Credits beginning

the credit . To claim this credit, complete Section 1, Part 9 of

June 30, 2010 . Only carryover credits from prior years are

Schedule CR .

allowed . For additional information, contact the Department

Foreign Source Retirement Income Tax Credit

of Housing and Community Development at 804-371-

7117 .

A credit is available to Virginia residents who paid income

tax to a foreign country on pension or retirement income

Qualified Equity and Subordinated Debt Investments Credit

derived from past employment in a foreign country provided

Taxpayers making a “qualified investment” in the form of

such income is included in Virginia taxable income for the

equity or subordinated debt in a “qualified business” may be

taxable year . For purposes of computing the credit, the

eligible for this credit . Businesses may apply for designation

foreign currency must be translated into U .S . dollars using the

as a qualified business using Form QBA . The qualification is

prevailing exchange rate that most nearly reflects the value

valid only for the calendar year of the application . Therefore,

of the currency at the time the taxes were actually paid to the

the business needs to reapply each year for qualification . To

foreign country . If you filed separately in the foreign country,

qualify, the business must (1) have annual gross revenues

but are filing jointly in Virginia, enter only the Virginia taxable

of no more than $3 million in its most recent fiscal year, (2)

income attributable to the filer whose income was taxed by the

have its principal office or facility in the Commonwealth, (3)

foreign country. For the purposes of this credit, possessions of

be engaged in business primarily in or having substantially

the U .S . are considered foreign countries . Any foreign country

all of its production in the Commonwealth and (4) have not

that does not qualify for the federal tax credit (under IRC §

obtained during its existence more than $3 million in aggregate

901(j)) does not qualify for this Virginia credit . To claim this

gross cash proceeds from the issuance of its equity or debt

credit, complete Schedule CR and attach a copy of the return

investments (not including commercial loans from chartered

filed in the foreign country or other proof of tax payment to the

banking or savings and loan institutions) .

foreign country .

The credit equals 50% of the qualified business investments

Historic Rehabilitation Tax Credit

made during the taxable year . For the 2010 taxable year, the total

Individuals, estates, partnerships, trusts or corporations

amount of credit granted is limited to $5 million . For the 2011

incurring eligible expenses in the rehabilitation of a certified

taxable year, the total amount of credit granted is limited to $3

historic structure are entitled to claim a credit against the tax

million . For taxable years beginning with 2012, the total amount

imposed by Va. Code §§ 58 .1-320, 58 .1-360, 58 .1-400, 58 .1-

of credit granted is limited to $4 million . Beginning in 2009,

1200, 58 .1-2500 or 58 .1-2620 . The credit is equal to 25% of

one-half of this amount must be allocated to commercialization

eligible rehabilitation expenses for projects completed in 2000

investments and the other half is available for all other qualifying

and thereafter . To qualify, the cost of the rehabilitation must

investments . If credit applications for either half exceed the

equal at least 50% (25% if the building is an owner occupied

allowed amount, the credits for that half will be prorated . If

residence) of the assessed value of the building for local real

credit applications for either half are less than the allowed

estate tax purposes in the year preceding the start of the

amount, the balance will be available for allocation to the other

rehabilitation . Any unused credit may be carried forward for

type of credits . The total amount of credit that may be used per

ten years . The rehabilitation work must be certified by the

taxpayer per taxable year may not exceed $50,000 . The credit

Virginia Department of Historic Resources as consistent with

is nonrefundable . Unused credits may be carried forward up to

the Secretary of the Interior’s Standards for Rehabilitation .

15 years . Equity and debt investments held in connection with

Applications for certification may be obtained from the Virginia

a qualified business investment must be held by the investor

Department of Historic Resources, 2801 Kensington

for at least three full calendar years following the calendar year

Avenue, Richmond, VA 23221, 804-367-2323, or visit www.

for which the credit is allocated except in certain instances . If

dhr.virginia.gov.

the holding period is not met, the unused credit amount will be

forfeited, and an assessment will be issued for the amount used

Day-Care Facility Investment Tax Credit

to which shall be added interest, computed at the rate of one

A credit is allowed in an amount equal to 25% of the

percent per month, compounded monthly from the date the tax

expenditures paid or incurred to establish a day-care facility

credits were claimed .

for the children of employees, not to exceed $25,000 . The total

Virginia Schedule Cr Instructions - For Use With Forms 760, 760py, 763 And 765 General Information - 2012 Page 3

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