Form Itf - Virginia Application For International Trade Facility Tax Credit (Page 6 of 7) in pdf

Application for International Trade Facility

Tax Credit Instructions

General Information

Port Job Tax Credit: A “qualified full-time employee” is

defined as an employee filling a new, permanent full-time

An “international trade facility” is defined as a company

position in an international trade facility in the Commonwealth.

that is engaged in port-related activities, including, but not

A “new, permanent full-time position” is defined as a job of

limited to, warehousing, distribution, freight forwarding and

indefinite duration, created by the company as a result of the

handling, and goods processing; uses maritime port facilities

establishment or expansion of an international trade facility

located in the Commonwealth of Virginia; and transports at

in the Commonwealth, requiring a minimum of 35 hours of

least 10 percent more cargo, measured in 20-foot equivalent

work per week for the entire normal year. A “normal year” is

marine containers, through maritime port facilities in the

defined as at least 48 weeks in a calendar year. Seasonal

Commonwealth during the taxable year than was transported

and temporary positions; jobs created by shifting a job

by the company through such facilities during the preceding

function from elsewhere in the Commonwealth; and positions

taxable year.

ancillary to the principal activities performed by employees at

For taxable years beginning on and after January 1, 2011, but

international trade facilities do not qualify as new, permanent

before January 1, 2015, an income tax credit equal to $3,000

full-time positions. No credit is allowed for the same jobs for

is available for every employee hired by Virginia shippers

which a major business facility job tax credit was claimed

that results from increased cargo moving through a Virginia

pursuant to Va. Code § 58.1-439.

cargo facility operated by the Virginia Port Authority or two

No credit is permitted for any employee for whom a credit

percent of any capital investment made by a Virginia shipper

under this section was previously earned by a related party

to facilitate increased cargo moving through a Virginia cargo

or trade or business under common control.

facility operated by the Virginia Port Authority. Taxpayers can

elect either credit, but cannot claim both credits in the same

Fractional Employees: If an employee is employed in the

taxable year. The credit can be claimed against the individual

Commonwealth for less than twelve full months during the

income tax and the corporate income tax. Any amount of

credit year, the credit amount is equal to $3,000 multiplied

credit attributable to a partnership, S-corporation, or limited

by a fraction, the numerator of which is the number of full

liability company must be allocated to the individual partners,

months that the qualified full time employee worked for the

shareholders, or members, respectively, in proportion to their

international trade facility for the year, and the denominator

ownership or interest in the business entity.

of which is twelve.

Any international trade facility that creates jobs or makes

Credit Recapture: Part or all of the Port Job Tax Credit may

capital investments in a “tobacco-dependent locality” is

be recaptured. If the number of qualified full-time employees

eligible for a port tax credit equal to $6,000 per job created

in any of the five years succeeding the credit year decreases

or four percent of qualified capital investment expenses,

below the average number of qualified full-time employees

to the extent that money is available in the Technology

employed during the credit year, the credit is recaptured by

Initiative in Tobacco-Dependent Localities Fund (the

recomputing the credit which was earned for the original

Fund). Check the box and provide the locality information

credit year using the decreased number of qualified full-time

if the credit is earned in a tobacco-dependent locality. The

employees and subtracting the recomputed credit amount

Department of Taxation (the Department) will adjust the

from the amount of credit previously earned. If the average

amount of credit based on the money available in the Fund.

number of qualifying full-time employees employed at an

If the amount of credits allowable for companies in tobacco-

international trade facility falls below the amount employed

dependent localities exceeds the amount deposited in the

by the taxpayer prior to claiming any credits in any of the five

Fund, the credits will be allocated to taxpayers on a pro rata

taxable years succeeding the credit year, all credits earned

basis by the Department.

with respect to the international trade facility are recaptured.

Any recapture first reduces credits earned but not yet allowed

To receive a credit, taxpayers are required to apply to the

and credits allowed but carried forward before it increases a

Department. No more than $250,000 in tax credits will be

taxpayer’s tax liability.

issued in any fiscal year. If the amount of tax credits requested

exceeds $250,000, the credits will be allocated proportionately

When claiming the Port Job Tax Credit, complete and return

among all qualified taxpayers. The Department will determine

the Schedule B with your completed Form ITF. You must

the credit amount for the taxable year and provide a written

also submit Form ITF and Schedule A for the subsequent

certification to each taxpayer.

five years.

The amount of the credit is limited to fifty percent of the

Port Investment Tax Credit: A “capital investment” is defined

taxpayer’s tax liability for the taxable year. Any unused

as the amount properly chargeable to a capital account for

credit amount can be carried forward for ten years.

improvements to rehabilitate or expand depreciable real

property placed in service during the taxable year and

the cost of machinery, tools, and equipment used by an

international trade facility directly related to the movement

of cargo and placed in service on or after January 1, 2011.

Machinery, tools, and equipment do not include the basis of

Form Itf - Virginia Application For International Trade Facility Tax Credit Page 6

Related Articles

Related forms

Related Categories