Fillable Virginia Form 301 - Enterprise Zone Credit Corporation Tax (Page 2 of 2) in pdf

*VAC301212888*

FORM 301 INSTRUCTIONS — CORPORATION TAX

GENERAL INFORMATION: Enter the zone location code in the box lo-

(11) Credit used this year: Enter the amount from Line 9 or 10, whichever

cated at the top of the form . This code number can be obtained from the

is less .

Certificate of Qualification from the Department of Housing and Community

(12) Credit carryover to subsequent year: Subtract the amount on Line 11

Development .

from the amount on Line 9 .

The following rules apply when computing tax credits:

FOR BUSINESSES QUALIFYING ON OR AFTER JULY 1, 1995

c Where a credit is limited to a percentage of the tax, the "tax" for this pur-

General Tax Credit:

pose shall be gross tax, less the telecommunications company credit .

(13) Enter the percentage authorized by the Department of Housing and

c Other income tax credits should be claimed in the order in which they

Community Development .

provide the maximum benefit, regardless of the order shown on the

(14) Multiply the amount from Line 4 by the percentage on Line 13 .

return .

(15) Enter the amount of credit authorized by the Department of Housing

c Claim only as much credit as can be used to offset tax liability and keep

and Community Development .

accurate records of the carryover available for each credit .

(16) Enter the lesser of Line 14 or Line 15 . This is your current year general

LINE BY LINE INSTRUCTIONS:

tax credit . Any unused tax credit may not be applied to future tax

(1) Enter taxable income from Line 7 or 8(a) of Form 500, as appropri-

years .

ate .

Space Reserved for Future Use

(2) Enter the percentage of business done within the enterprise zone . Corpora-

(17)

tions having taxable income from business activity both inside and outside of

(18)

an enterprise zone must allocate and apportion on Schedule A (Form

(19)

500) their taxable income attributable to the conduct of business ac-

(20)

cording to Va. Code § 59 .1-280(G) . Schedule A (Form 500) must be

(21)

attached to Form 301 . Partners and shareholders of S corporations

(22)

should receive a Schedule 502A from the partnership or S corporation,

Zone Investment Tax Credit:

completed for this purpose, and attach it to their Form 301 .

(23) Enter the amount of zone investment tax credit negotiated with the

(3) Enter the amount from Line 1 above if the qualified business firm op-

Department of Housing and Community Development .

erated solely within the enterprise zone . For a qualified business firm

(24) Enter the total zone investment tax credit used in prior years .

which operates both inside and outside of a zone, multiply the taxable

(25) Total zone investment tax credit: Subtract Line 24 from Line 23 .

income subject to credit (Line 1) by the percentage of business done

(26) Enter the credit amount authorized by the Department of Housing and

within the enterprise zone (Line 2) .

Community Development .

(4) Multiply Line 3 by 6% to determine the tax attributable to enterprise

(27) Enter the amount from Line 25 or Line 26, whichever is less .

zone activity .

(28) Enter the amount of credit used this year: The amount entered on this

FOR BUSINESSES QUALIFYING PRIOR TO JULY 1, 1995

Line is the amount on Line 27, but cannot exceed the corporation tax

General Tax Credit:

liability amount (Form 500, Line 9) minus all priority credits taken on

(5) Enter the applicable percentage corresponding to the qualification

Form 500CR (Part II and Parts IV-XXIII) and Lines 6, 11, and 16 from

year as follows:

this form, as applicable .

Operations prior to July 1, 1992

(29) Credit carryover to subsequent year: Subtract the amount on Line 28

(a) First tax year - 80%

from the amount on Line 25 .

(b) Second tax year - 60%

(d) Fourth and fifth tax years - 20%

(30) Total Enterprise Zone Credit: Enter the total of all applicable En-

Operations beginning on or after July 1, 1992

terprise Zone Credits for this year from Lines 6, 11, 16 and 28 . Enter

(a) First tax year - 80%

the total here and on Form 500CR, Part III, Line 7 .

(b) Second through tenth tax years - 60%

NOTE: When qualifying in more than one Enterprise Zone, complete

(6) Multiply the amount on Line 4 by the percentage on Line 5 . This is your

a separate Form 301 for each zone. Add the total credit amount from

current year general tax credit . Any unused tax credit in this category

each Form 301 and enter that amount on Form 500CR, Part III, Line

may not be applied to future tax years .

Unemployment Tax Credit:

For additional information, call (804) 367-8037 or write the Department

(7) The unemployment tax credit amount is equal to the amount of state

of Taxation, P.O. Box 1115, Richmond, VA 23218-1115. You can obtain

unemployment tax paid on employees within the enterprise zone

most Virginia tax forms from the Department of Taxation's website at

multiplied by the applicable percentage . The percentages are as fol-

lows:

Operations prior to July 1, 1992

For assistance contact:

(a) First tax year - 80%

Virginia Department of Taxation

(b) Second tax year - 60%

(d) Fourth and fifth tax years - 20%

P . O . Box 1115

Operations beginning on or after July 1, 1992

Richmond, VA 23218-1115

(a) First tax year - 80%

(804) 367-8037

(b) Second through tenth tax years - 60%

(8) Enter the carryover amount from the prior year . Attach a computation

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of the carryover amount .

(9) Add Lines 7 and 8 . This is the total unemployment tax credit available

for the year .

(10) Enter the remaining tax attributable to a enterprise zone activity less

any general tax credit (Line 4 less Line 6) .

Virginia Form 301 - Enterprise Zone Credit Corporation Tax Page 2

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