Virginia Schedule Cr Instructions - Credit Computation Schedule - For Use With Forms 760, 760py, 763 And 765 - 2006


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For use with Forms 760, 760PY and 763
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General Information
The total nonrefundable credits claimed on Schedule CR may
Complete Schedule CR if claiming one or more of these credits:
not exceed the amount of tax shown on your return less the total
Trust Benefi ciary Accumulation Distribution
amount reported for spouse tax adjustment, credit for tax paid to
Enterprise Zone Act
another state, and credit for low-income individuals or Virginia
Neighborhood Assistance Act
earned income credit.
Recyclable Materials Processing Equipment
Conservation Tillage Equipment
Fertilizer and Pesticide Application Equipment
Trust Benefi ciary Accumulation Distribution
Rent Reduction Program
If only claiming the credit set forth under Section 58.1-370, Code
Vehicle Emissions Testing Equipment and Clean-Fuel
of Virginia on Schedule CR, enter the amount of this credit on Form
760, Line 23, Form 760PY, Line 18(g) or Form 763, Line 19(g). Write
“Trust Benefi ciary Accumula tion Distribution Credit” to the left of the
Major Business Facility
entry box. If you are claiming other credits on Schedule CR, add
Foreign Source Retirement Income
the amount of this credit to the total on Schedule CR, Line 107. A
Historic Rehabilitation
schedule showing the credit computation must be attached to
Day-Care Facility Investment
your return.
Low-Income Housing
Agricultural Best Management Practices
Enterprise Zone Act Credit
Qualifi ed Equity and Subordinated Debt Investments
Businesses located within an Enterprise Zone that have initiated
use of the Enterprise Zone General Income Tax Credit or have a
Worker Retraining
signed agreement with the Commonwealth regarding the use of
Waste Motor Oil Burning Equipment
such credits in place by July 1, 2005 may be eligible based on job
Purchase of Long-Term Care Insurance
creation to take a credit against the tax due on zone taxable income
Home Accessibility Features for the Disabled
in an amount of 80% of the tax due for the fi rst year and 60% of the
Riparian Waterway Buffer
tax due for the second through the tenth years. Excess general tax
Land Preservation
credit, if any, may not be carried forward. Such credits are authorized
Political Contributions
through fi scal year 2019.
Coalfi eld Employment Enhancement
In addition businesses located within an Enterprise Zone that
Virginia Coal Employment and Production Incentive
have initiated use of the Zone Investment Tax Credit or have a
Claiming a Credit From a Partnership, S Corporation
signed agreement with the Commonwealth regarding the use of
or Limited Liability Company
such credits in place by July 1, 2005 may be eligible for a credit
Partners of a partnership, shareholders of an S corporation,
against zone taxable income. The investment credit can be carried
and members of a limited liability company may claim the amount
forward until the full amount is used. Such credits are authorized
of credit passed through to them by the partnership, S corporation
through fi scal year 2019.
or limited liability company. Generally, distributions of a credit
If the annual tax credit requested exceeds the annual
by a partnership, S corporation or limited liability company to its
appropriation, the Virginia Department of Housing and Community
partners, shareholders and members are in proportion to their
Development (DHCD) will issue a proportionate amount to each
ownership or interest in the partnership, S corporation or limited
qualifi ed business fi rm requesting the credits.
liability company.
For qualifi cation forms and additional information, contact:
Virginia Department of Housing and Community Development,
Each section of Schedule CR notes the carryover period, if
501 N. Second Street, Richmond, VA 23219-1321, 804-371-7030
any, that applies to the credit. As a general rule, the maximum
or visit
nonrefundable credit available is the amount on Schedule CR,
Neighborhood Assistance Act Tax Credit
Line 1, reduced by other credits claimed, regardless of order on
The Virginia Neighborhood Assistance Act provides tax credits to
Schedule CR. There are three refundable credits: Virginia Coal
businesses that donate money, property, limited professional services
Employment and Production Incentive and Coalfi eld Employment
and contracting services directly to pre-approved Neighborhood
Enhancement Tax Credit (computed on Form 306); and the Real
Assistance Program (NAP) organizations whose primary function
Property Improvement Tax Credit component of the Enterprise Zone
is to benefi t impoverished individuals. Individuals may receive
Credit (computed on Form 301). These refundable credits are
a credit for monetary donations to an eligible organization.
reported in sections XXV and XXVI of Schedule CR. The combined
Licensed physicians, dentists, nurses, nurse practitioners,
total of nonrefundable and refundable credits is entered on Form
physician assistants, chiropractors, optometrists, dental hygienists,
760, Line 23; Form 760PY, Line 18(g); or Form 763, Line 19(g).
pharmacists, professional counselors, clinical social workers,
If the total of your nonrefundable credits is larger than the balance
clinical psychologists, marriage and family therapists and physical
of maximum nonrefundable credit available, the following rules will
therapists who donate their services for an approved clinic may
ensure that you receive the maximum benefi t of your credits:
also be eligible for credits. Excess donor credit, if applicable, may
Claim nonrefundable credits without a carryforward
be carried forward for the next fi ve taxable years. The amount of
provision (such as credit for political contributions)
credit attributable to a partnership or S corporation shall be allocated
fi rst;
to the partners and shareholders in proportion to their ownership
Claim carryover credits from prior years next
or interest in the partnership or S corporation. To claim the tax
(in expiration order);
credit, a certifi cate from the Department of Social Services must
Utilize current year credits in the order of their
be attached to your return. For a list of approved organizations
carryover provision next;
or additional information, contact: Virginia Department of Social
Then report any unused credits as carryovers for
Services, Neighborhood Assistance Program, 7 North Eighth
succeeding taxable years to the extent allowed by law.
Street, Richmond, VA 23219-3301.
2601451 Rev. 7/06


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