Looking for a Virginia Tax Forms And Templates? Download it for free!

Instructions for Completing Form 305, Clean Fuel Vehicle and Biofuels Job Creation Tax Credit

•

This credit may not be claimed if the corporation is claiming

Line 7:

Enter the carryover credit from the prior year.

a major business facility job tax credit.

Line 8:

Add amounts on Lines 5, 6 and 7.

•

The clean fuel vehicle and advanced cellulosic biofuels job

Line 9:

Total tax on return after priority credits: In general, claim

creation tax credit is a nonrefundable credit. However, any

priority credits in the following order:

excess credit can be carried forward for up to five years.

• Claim nonrefundable credits without a carryforward

Fiscal year filers: Complete this line only if your taxable year is

provision (such as the coal cogeneration credit);

NOT from JANUARY 1 to DECEMBER 31. You must

• Claim carryover credits from prior years (carryover

use the same taxable period on your Virginia return as on

credits should be claimed in order of expiration);

your federal return.

• Claim current year credits in the order of their

Name, Account Number and Federal Employer Identification

carryover provisions; and

Number or Social Security Number: Enter the

• Report any unused credits as carryovers for

information for the taxpayer claiming this credit.

succeeding taxable years to the extent allowed.

Definitions:

Line 10: Clean fuel vehicle and advanced cellulosic biofuels job

"Advanced biofuel" means a fuel derived from any cellulose,

creation tax credit allowable this year: Enter the lesser of

hemicellulose, or lignin that is derived from renewable biomass

the amount on Line 8 or Line 9 here and on the applicable

or algae.

credit line of your Virginia income tax return.

"Clean special fuel" means any product or energy source used

Line 11: Excess credit carryover to next year. If the amount on

to propel a highway vehicle, the use of which, compared to

Line 8 is larger than the amount on Line 9, subtract the

conventional gasoline or reformulated gasoline, results in lower

amount on Line 9 from the amount on Line 8.

emissions of oxides of nitrogen, volatile organic compounds, carbon

Schedule B (Form 305)

monoxide or particulates or any combination thereof. The term

includes compressed natural gas, liquefied natural gas, liquefied

Pass-through Entity Identification

petroleum gas, hydrogen, hythane (a combination of compressed

If distributing all or a portion of this credit, complete Schedule

natural gas and hydrogen), or electricity.

B to identify all pass-through entity owners and each taxpayer to

"Job" means the full-time employment of an individual in Virginia by

whom a portion of the credit is distributed. Note that this credit may

a corporation for at least 40 hours per week during at least 40 weeks

only be used to offset corporation income tax. Attach a separate

during the calendar year whose primary work activity is related

schedule if additional space is needed. Printouts containing the same

directly to any of the activities listed in Va. Code § 58.1-439.1(B).

information may be substituted for Schedule B.

"Vehicle" has the same meaning as provided in Internal Revenue

Schedule B should contain the name, federal identification number

Code §§ 179A and 30.

(FEIN), Virginia account number (if known), address and amount

of credit for each qualifying pass-through entity owner and the total

Skip to Line 7 if your only Clean Fuel Vehicle and Advanced

percentage and credit not distributed to non–qualifying entities such

Cellulosic Biofuels tax credit is from a pass-through entity

as individuals. The total credit in Column E should be the current

(partnership, S corporation, etc).

year credit amount from Form 305, Line 5, page 1.

Lines 1 and 2: Complete Lines 1 and 2, providing the NAIC code

Each corporate taxpayer in Column A must receive a copy

and checking the applicable boxes, to show qualification

of the pass-through entity’s Form 305 or a statement that

for the credit. Note that all of the qualifications on

identifies the taxpayer earning the credit (name, address, and

Line 2 must be met in order to qualify for the credit.

state and federal identification numbers), and provides all

Line 3:

Enter the name of the city or county in Virginia in which

information set forth on Form 305. Each taxpayer receiving

the clean fuel vehicle job(s) was created.

a distribution will enter the amount received on its own Form

305, Line 7. Note that this credit is only applicable as a credit

Line 4:

Number of qualifying jobs: Complete Schedule A, then

against the Virginia corporation income tax.

enter the number of qualifying jobs on Lines 4a, 4b, and

4c. Printouts containing the same information may be

Where To Get Help

substituted for Schedule A.

For additional information, write the Virginia Department of

NOTE: If a clean fuel vehicle and advanced cellulosic

Taxation, P. O. Box 5126, Richmond, VA 23220-0126 or call

biofuels job does not qualify for this credit solely because

(804) 367-8037.

less than forty weeks remained in the taxable year after

Tenemos servicios disponible en Español.

it was created and filled, the credit may still be claimed.

However, the forty week requirement must be met in the

To order forms, call (804) 440-2541. If you have access to

next taxable year or the credit must be recaptured through

the internet, you can obtain most Virginia income tax forms

the filing of an amended return. This treatment will also

and additional tax information by visiting our web page:

apply for the next two subsequent taxable years involving

that job.

Forms are also available from the office of your local Commissioner of

Line 5:

Multiply the total of Lines 4a, 4b, and 4c by $700.

the Revenue, Director of Finance or Director of Tax Administration.

Line 6:

Complete this line if claiming a current year clean-fuel

vehicle job tax credit distributed to you from another

entity. See the instructions for Schedule B in the next

column for additional information concerning pass-

through entities.

Page 4

Form 305 - Clean Fuel Vehicle And Advanced Cellulosic Biofuels Job Creation Tax Credit Page 4

Related Articles

Related forms

Related Categories