Form 301 - Virginia Enterprise Zone Credit State Bank Franchise Tax (Page 2 of 2) in pdf

*VAB301208000*

FORM 301 INSTRUCTIONS — STATE BANK FRANCHISE TAX

(13) Credit used this year: Enter the amount from Line 11 or 12, which-

ever is less .

GENERAL INFORMATION: Enter the zone location code in the box

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

located at the top of the form .

13 from the amount on Line 11 .

This code number can be obtained from the Certificate of Qualification

from the Department of Housing and Community Development .

FOR BUSINESSES QUALIFYING ON OR AFTER JULY 1, 1995

The following rules apply when computing tax credits:

General Tax Credit:

c A credit may only be claimed against the state franchise tax due on

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

Line 18 of Form 64 .

Community Development .

c Tax credits should be claimed in the order in which they provide the

(16) Multiply the amount from Line 6 by the percentage on Line 15 .

maximum benefit, regardless of the order shown on the return .

(17) 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

and Community Development .

keep accurate records of the carryover available for each credit .

(18) Enter the lesser of Line 16 or Line 17 . This is your current year

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

LINE BY LINE INSTRUCTIONS:

future tax years .

(1) Enter the net taxable capital . This is the total taxable capital from

Line 15 of Form 64 .

Space Reserved for Future Use

(2) Enter the local taxable capital . Generally, local taxable capital is

(19)

80% of Line 15, Form 64 . However, capital not assignable to a

(20)

Virginia locality is considered state taxable capital .

(21)

(3) Enter the state taxable capital . This is the net taxable capital (Line

(22)

1) less local taxable capital (Line 2) .

(23)

(4) Enter the percentage of business done within the zone . A bank hav-

(24)

ing net taxable capital arising from business locations (branches)

both inside and outside of an enterprise zone shall compute the

Zone Investment Tax Credit:

percentage of deposits attributable to the branch or branches in

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

the zone to the deposits attributable to all branches in Virginia .

Department of Housing and Community Development .

(5) Multiply Line 3 by the percentage on Line 4 to determine the capital

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

attributable to enterprise zone activity .

(27) Total zone investment tax credit: Subtract Line 26 from Line 25 .

(6) Enter $1 .00 per $100 .00 of the amount on Line 5 . New banks which

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

have not been in business for a full year before the January 1 date

and Community Development .

for valuing capital, use the prorated rate .

(29) Enter the amount from Line 27 or Line 28, whichever is less .

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

FOR BUSINESSES QUALIFYING PRIOR TO JULY 1, 1995

on this line is the amount on Line 29, but cannot exceed the bank

General Tax Credit:

franchise tax liability amount (Form 64, Line 18) minus all other

(7) Enter the applicable percentage corresponding to the qualification

credits taken on Form 64 and Lines 8, 13, 18 from this form, as

year as follows:

applicable .

Operations prior to July 1, 1992

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

(a) First tax year- 80%

30 from the amount on Line 27 .

(b) Second tax year- 60%

(d) Fourth and fifth tax years- 20%

(32) Total Enterprise Zone Credit: Enter the total of all applicable

Operations beginning on or after July 1, 1992

Enterprise Zone credits for this year from Lines 8, 13, 18 and 30 .

(a) First tax year - 80%

Enter the total here and on Form 64, Line 20 .

(b) Second through tenth tax years- 60%

NOTE: When qualifying in more than one enterprise zone, complete

(8) Multiply the amount on Line 6 by the percentage on Line 7 . This

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

is your current year general tax credit . Any unused tax credit in

each Form 301 and enter that amount on Form 64, Line 20 of the

this category may not be applied to future tax years .

return. For additional information, call (804) 786-3182 or write the

Department of Taxation, P.O. Box 715, Richmond, VA 23218-0715.

Unemployment Tax Credit:

You can obtain most Virginia tax forms from the Department of

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

Taxation's website at

state unemployment tax paid on employees within the enterprise

zone multiplied by the applicable percentage . The percentages are

as follows:

For assistance contact

Operations prior to July 1, 1992

(a) First tax year- 80%

Department of Taxation

(b) Second tax year- 60%

(d) Fourth and fifth tax years- 20%

P .O . 715

Operations beginning on or after July 1, 1992

Richmond, VA 23218-0715

(a) First tax year - 80%

804-786-3182

(b) Second through tenth tax years- 60%

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

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of the carryover amount .

(11) Add Lines 9 and 10 . This is the total unemployment tax credit avail-

able for the year .

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

any general tax credit (Line 6 less Line 8) .

Form 301 - Virginia Enterprise Zone Credit State Bank Franchise Tax Page 2

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