Fillable Form 304 - Major Business Facility Job Tax Credit (Page 6 of 7) in pdf

Instructions for Completing Form 304, Major Business Facility Job Tax Credit

Qualifying for the Credit

credit until the first taxable year following the

taxable year in which the company becomes

Individuals, estates, trusts, corporations, banks,

eligible for the credit by establishing or expanding

insurance companies and telecommunications

a major business facility in Virginia.

companies may claim Major Business Facility Job Tax

• A company may enter into a new major business

Credits for qualified job expansion in excess of the

expansion at the end of each credit year. Each

threshold amounts established for one of the two credit

expansion year must begin on the same date. For

tiers. This credit is not available to retail businesses

example: if your credit year ends on 12/31/10 and

if retail trade is the principal activity of the facility.

your expansion year began on 02/01/08, you can

The taxpayer cannot claim both the Major Business

begin a new expansion on 02/01/11.

Facility Job Tax Credit and the Coalfield Employment

• Complete Form 304 to compute your credit and

Enhancement Tax Credit, the Clean-Fuel Vehicle and

forward it to the Tax Credit Unit at the address

Advanced Cellulosic Biofuels Job Tax Credit, the Green

below at least 90 days prior to the due date of your

Job Creation Tax Credit or the International Trade

tax return. You will receive a certification letter

Facility Tax Credit.

confirming your credit amount.

A qualified business firm receiving an Enterprise Zone

Job Creation Grant under Va. Code § 59.1-547 shall

Where to File Form 304

not be eligible to receive a Major Business Facility Job

Send your completed Form 304 to: Tax Credit Unit;

Tax Credit for any job that was used to qualify for the

Virginia Department of Taxation; P.o. Box 715;

Enterprise Zone Job Creation Grant.

richmond, Virginia 23219.

"Qualified job expansion" means at least 50 jobs for

Please Note:

qualified full-time employees have been created within

• Form 304 must be filed for a total of six taxable

a continuous twelve-month period ending within a

years following each expansion.

taxpayer's taxable year (25 jobs if located within an

• A separate Form 304 must be filed for each major

enterprise zone or economically distressed area).

business facility or qualified job expansion.

The thresholds for the two credit tiers are as follows:

• Do NoT attach Form 304 to your tax return.

Tier 1: The qualifying threshold amount for Tier 1 is

100 new jobs for the establishment or expansion of a

What To Attach

major business facility in Virginia. Please note that for

To ensure the timely processing of your application, be

taxpayers whose expansion year begins on or after

sure to provide the following:

January 1, 2010, the threshold has been reduced to

• Schedules A, B, and/or C (if applicable);

50 new jobs.

• Virginia Schedule 500AC, Schedule of Affiliated

Tier 2: The qualifying threshold amount for Tier 2 is

Corporations consolidtaed and Combined Filers

50 new jobs for the establishment or expansion of a

(if applicable)

major business facility in a locality identified by the

• Physical address of each business location for all

Virginia Economic Development Partnership as an

expansion facilities

economically distressed area or has been designated

as an enterprise zone. Please note that for taxpayers

Where to Get Help

whose expansion year begins on or after January 1,

Write to the Virginia Department of Taxation, P. o.

2010, the threshold has been reduced to 25 new jobs.

Box 715, richmond, VA 23218-0715 or call (804)

Taxpayers can qualify for and claim a credit for only

786-2992.

one tier per facility. Credits are subject to recapture if

Forms and instructions are available for download from

employment decreases during the five years following

the Department's website, , or

the credit year.

by calling (804) 440-2541.

A qualified company that claims employees for

Forms are also available from the office of your local

the Major Business Facility Job Tax Credit or the

Commissioner of the Revenue, Director of Finance or

International Trade Facility Tax Credit cannot receive

Director of Tax Administration.

a Port of Virginia Economic and Infrastructure

Development Zone Grant (POV Zone Grant) for any

Form Instructions

previously claimed jobs.

• Lines that are not specifically mentioned below are

Computing and Claiming the Credit; Due Date for

self-explanatory.

Form 304

• Fiscal year filers: Using your federal tax period,

• A company cannot file Form 304 and claim this

complete the line at the top of the form.

Page 6

Form 304 - Major Business Facility Job Tax Credit Page 6

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