Virginia Schedule Cr Instructions - Credit Computation Schedule - For Use With Forms 760, 760py, 763 And 765 - 2006 Page 3

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Historic Rehabilitation Tax Credit
calendar year of the application. Therefore, the business needs
to reapply each year for qualifi cation. To qualify the business must
Individuals, estates, partnerships, trusts or corporations
incurring eligible expenses in the rehabilitation of a certifi ed historic
(1) have annual gross revenues of no more than $3 million in its
structure are entitled to claim a credit against the tax imposed by
most recent fi scal year, (2) have its principal offi ce or facility in
Sections 58.1-320, 58.1-360, 58.1-400, 58.1-1200, 58.1-2500 or
the Commonwealth, (3) be engaged in business primarily in or
58.1-2620 of the Code of Virginia. The credit is equal to 25% of
does substantially all of its production in the Commonwealth and
eligible rehabilitation expenses for projects completed in 2000 and
(4) have not obtained during its existence more than $3 million in
thereafter. To qualify, the cost of the rehabilitation must equal at
aggregate gross cash proceeds from the issuance of its equity or
least 50% (25% if the building is an owner occupied residence) of
debt investments (not including commercial loans from chartered
the assessed value of the building for local real estate tax purposes
banking or savings and loan institutions).
in the year preceding the start of the rehabilitation. Unused credit
The credit equals 50% of the qualifi ed business investments made
may be carried forward for ten years. The rehabilitation work must
during the taxable year. The total amount of credit that may be used
be certified by the Virginia Department of Historic Resources
per taxable year may not exceed $50,000. The credit is nonrefundable.
as consistent with the Secretary of the Interior’s Standards for
Unused credits may be carried forward up to 15 years. If total annual
Rehabilitation. Certifi cation of buildings and rehabilitations are
requests for this credit exceed $3 million, the Department of Taxation
issued by the Department of Historic Resources and must be
will prorate the allowable credit for each taxpayer. Equity and debt
attached to the tax return when claiming the credit. Applications
investments held in connection with a qualifi ed business investment
for certifi cation may be obtained from the Virginia Department
must be held by the investor for at least three full calendar years
of Historic Resources, 2801 Kensington Avenue, Richmond, VA
following the calendar year for which the credit is allocated except in
23221, 804-367-2323.
certain instances. If the holding period is not met, the unused credit
amount will be forfeited, and an assessment will be issued for the
Day Care Facility Investment Tax Credit
amount used to which shall be added interest, computed at the rate
A credit is allowed in an amount equal to 25% of the expenditures
of one percent per month, compounded monthly from the date the
to establish a day-care facility for the children of employees, not
tax credits were claimed. See the form and Virginia Tax Bulletin 00-5
to exceed $25,000. The total credits approved may not exceed
(7-31-2000) for additional details.
$100,000 in any fi scal year. To be eligible for the credit: (1) the
This credit requires pre-approval by the Department of
facility must be operated under a license issued by the Virginia
Taxation. Investors must apply to the Department by April 1, 2007
Department of Social Services; (2) the building permit application
using Form EDC. Taxpayers fi ling Form EDC after April 1 will
for the facility must be submitted after July 1, 1996; (3) the facility
be denied this credit. All investors fi ling a timely Form EDC will
must be used primarily by the children of the taxpayer’s employees;
be notifi ed of the allowable credit by June 30, 2007. Since the tax
and (4) the Tax Commissioner must approve the credit application
return of most individuals is due May 1, 2007, most investors will
prior to claiming the credit. To apply, submit a letter of application
need to fi le an extension of time to fi le or amend their original return
that specifies the employer’s name, location of the facility and
to claim the credit.
certifi cation of items (1)-(3) above. Send the application to: Virginia
Pass-Through Entities must fi le Form PTE with the Department
Department of Taxation, Tax Credit Administration Unit, P.O. Box
of Taxation at least 60 days before fi ling their income tax return. A
715, Richmond, VA 23218-0715. Applications are approved in the
copy of the certifi cate from the Department of Taxation is a required
order received. Approved applicants will receive an approval form
attachment to Form PTE.
from the department. To claim the credit, complete Part XII, of the
Visit our Web-site: to obtain Form
Schedule CR. Each pass-through entity must attach Form PTE with
QBA, Form EDC and Form PTE. Additional information can also
the letter of application when applying for this credit. All pass-through
be found under the Tax Policy Library in Virginia Tax Bulletin 00-5
entities distributing this credit to its owner(s), shareholders, partners or
and Regulation 23 VAC10-110-225. Information on the application
members must give each a Schedule VK1, Owner’s Share of Income
process is also available from the Virginia Department of Taxation,
and Virginia Modifi cations and Credits. This credit is nonrefundable
Tax Credit Unit, P. O. Box 715, Richmond, Virginia 23218-0715,
but excess credit may be carried forward for 3 years. For additional
or call 804-786-2992.
information please call 804-786-2992.
Worker Retraining Tax Credit
Low-Income Housing Tax Credit
This credit allows an employer to claim a tax credit for the training
If you are a Virginia taxpayer and you claimed a low-income
costs of providing eligible worker retraining to qualifi ed employees.
housing tax credit on your federal income tax return for housing units
“Eligible worker retraining” includes approved noncredit courses
placed in service in Virginia on or after January 1, 1998, you may
provided by any of the Commonwealth’s community colleges, a
qualify to claim the state low-income housing tax credit. The state
private school or worker retraining programs (credit, noncredit
credit is a percentage of the federal credit. For additional information,
courses) undertaken through an apprenticeship agreement
contact the Dept. of Housing and Community Development at
approved by the Virginia Apprenticeship Council. The credit is 30%
804-371-7117.
of all training costs through a community college, or up to $100
Agricultural Best Management Practices Tax Credit
annual credit for each employee if incurred at a private school.
This credit is available to qualified taxpayers engaged in
Employers must apply for certifi cation of the amount of allowable
agricultural production for market who have in place a soil
credit using Form WRC, Worker Retraining Tax Credit, by April
conservation plan approved by the local Soil and Water Conservation
1, 2007, before claiming the credit on their income tax return.
District. The credit is 25% of the fi rst $70,000 which you expended
All businesses fi ling a timely Form WRC will be notifi ed of their
for agricultural best management practices approved by the local
allowable credit by June 30, 2007. The maximum worker retraining
SWCD. The maximum credit is $17,500 or the total amount of state
credits granted to all employers is limited to $2,500,000 annually. If
income tax obligation of the individual. Any unused credit may
total credits approved exceed this amount, each will be prorated. The
be carried forward for the next fi ve taxable years. For additional
credit is allowable against individual income tax, fi duciary income
information, contact your local Soil and Water Conservation
tax, corporation income tax and the bank franchise tax. The credit
District Offi ce.
is also allowable against taxes imposed upon insurance companies
Qualifi ed Equity and Subordinated Debt Investments Credit
and utility companies (under Sections 58.1-2500 et. seq. and Section
58.1-2620 et. seq., Code of Virginia). This credit is nonrefundable,
This credit may be claimed by taxpayers making a qualifi ed
but excess credit may be carried forward for the next three taxable
investment in the form of equity or subordinated debt in a qualifying
business. Businesses may apply for designation as a qualifi ed
years. To claim this credit, complete Part XVI of Schedule CR. For
business using Form QBA. The qualifi cation is valid only for the
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