Looking for a Virginia Form 760 Templates? Download it for free!

The business must apply by April 1st using Form BRU .

Information on the application process is available from the

Submitting a late application will disqualify you from the credit .

Virginia Department of Taxation, Tax Credit Unit, P. O. Box

All applications must be sent to the Virginia Department of

715, Richmond, VA 23218-0715, or call 804-786-2992.

Taxation, Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-

Coalfield Employment Enhancement Tax Credit

0715. This credit requires certification from the Tax Credit Unit

For taxable years beginning on or after January 1, 1996,

to be claimed on your tax return . A letter will be sent to certify the

but before January 1, 2017, a tax credit may be earned by

credit . For assistance contact the Department of Taxation,

indi viduals, estates, trusts and corporations who have an eco-

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

nomic ownership interest in coal mined in Virginia . Credits may

or call 804-786-2992.

be claimed for taxable years beginning on or after January 1,

Telework Expenses Tax Credit

1999 . Compute the allowable credit on Form 306 and report it

The Telework Expenses Tax Credit is an individual and

on Schedule CR for the tax year in which the credit is claimed

corporate income tax credit for employers who (1) incur

and/or earned .

eligible telework expenses pursuant to a telework agreement

Virginia Coal Employment and Production Incentive Tax

or (2) conduct telework assessments . This credit is equal to

Credit

the amount of expenses incurred during the January 1, 2012

This credit may be allocated between a qualifying electricity

to January 1, 2017 calendar years and must be for eligible

generator and qualifying person with an economic interest in coal .

telework expenses incurred during the calendar year that

The allocation of this credit may not exceed $3 per ton . All credits

ends during the taxable year . The amount of the credit cannot

earned on or after January 1, 2006, or prior to July 1, 2016, which

exceed $50,000 per year for each employer .

are allocated to persons with an economic interest in coal may

To qualify for a credit for eligible telework expenses

be redeemed by the Tax Commissioner if the credits exceed the

incurred pursuant to a telework agreement, the employer must

taxpayer’s state tax liability for the applicable taxable year . You

enter into a signed telework agreement with the teleworking

must complete the Form 306, Form 306T and its attachments

employee on or after July 1, 2012, but before January 1, 2017 .

to claim this credit .

This telework agreement must be in accordance with policies

Motion Picture Production Tax Credit

set by the Department of Rail and Public Transportation

(DRPT) . Such policies are available on the Telework!VA

Qualifying motion picture production companies are eligible to

website at . The maximum amount of

receive a series of refundable individual and corporate income tax

expenses that can be used in determining the amount of this

credits in the aggregate amount of $2 .5 million for the 2010-2012

portion of the credit is $1,200 per employee .

biennium and $5 million for any biennium thereafter .

The portion of the credit for telework assessment expenses

Base-Income Tax Credit: The base credit available is 15% of

is equal to the costs of preparing an assessment, not to exceed

all qualifying expenses (including wages), with a bonus of 5% if

$20,000 . This portion of the credit can only be claimed once

the production is filmed in an economically distressed area of the

by an employer .

Commonwealth, making the total base credit available up to 20%

of qualifying expenses .

Taxpayers may claim this credit for taxable years beginning

on or after January 1, 2012, but before January 1, 2017 . The

Additional Virginia Resident Credit: The production company

aggregate amount of tax credits that will be issued is capped

is allowed an additional credit of 10 to 20% of the total aggregate

at $1 million annually . If credit applications exceed the $1

payroll for Virginia residents employed in connection with the

million cap, credits will be allocated on a pro rata basis .

motion picture production . For companies that spend at least

$250,000 in total production costs in the Commonwealth, but not

The amount of credit claimed cannot exceed the tax liability

more than $1 million, the credit will equal 10% of the total Virginia

of the taxpayer . There is no carryforward of any unused credit .

resident aggregate payroll . For companies that spend over $1

Accordingly, even if a taxpayer is granted a credit amount, he

million in total production costs in the Commonwealth, the credit

must have sufficient tax liability in order to claim the full credit

will equal 20% of the total aggregate Virginia resident payroll .

amount . If the amount of credit granted exceeds the taxpayer’s

tax liability, he may only claim the credit up to the amount of

Additional Virginia Resident First-Time Industry Employee

his tax liability for the taxable year . To be eligible for this credit,

Credit: In addition to the above outlined credits, companies may

the employer is not allowed to deduct the qualified expenses

claim a credit of 10% of their total aggregate payroll for Virginia

in any taxable year . If these expenses are deducted for federal

residents who are employed as first time actors or first time

purposes, they will need to be included as an addition on the

members of a production crew in connection with a production

Virginia return . Taxpayers are not eligible for this tax credit if

in Virginia .

any other income tax credit is claimed for the same expenses .

The aggregate amount of all motion picture credits to be

To qualify for the credit, the employer cannot claim another

issued is capped at $2 .5 million for the 2010-2012 biennium and

Virginia income tax credit on the jobs, wages or other expenses

$5 million in each biennium thereafter . To qualify for this credit,

for the same employee .

production companies must submit an initial application to the

Virginia Film Office (“VFO”) at least 30 days prior to production

Taxpayers are required to apply to the Department of

and must enter into a Memorandum of Understanding . After

Taxation to reserve a portion of the credit . The reservation

production is complete, the production company must submit

application must be filed between September 1 and October 31

documentation to the VFO and will be issued a certification

of the year preceding the taxable year for which the tax credit

letter . A taxpayer may only claim this credit after receiving the

is earned . The Department of Taxation will provide tentative

certification letter from the VFO . For more information, contact:

approval by December 31 . If the applications for the credit

Virginia Film Office, 901 East Byrd Street, Richmond, VA

exceed the cap, the credits will be allocated to taxpayers on

23219-4048, or call 800-854-6233 .

a pro rata basis . To be eligible to claim the credit a Telework

Expenses Tax Credit Confirmation Application, must be filed by

Credits available through the Virginia Motion Picture

April 1 of the year following the calendar year that the eligible

Production Tax Credit are offered in addition to other Virginia

expenses were incurred .

production incentives . For additional information regarding all

available funding assistance for Virginia productions, please refer

to the Virginia Film Office’s website ( ) .

Virginia Schedule Cr Instructions - For Use With Forms 760, 760py, 763 And 765 General Information - 2012 Page 7

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