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information on pre-approved apprenticeship programs, contact the

least ﬁ fteen years. The land that is the subject of this credit cannot

Virginia Department of Labor and Industry at 804-786-2382.

be the subject of this credit again for ﬁ fteen years after it was ﬁ rst

For information on noncredit course approval, contact the Virginia

taken. The credit may be carried over for the succeeding ﬁ ve taxable

Department of Business Assistance, P. O. Box 446, Richmond,

years. For more information contact: Virginia Dept. of Forestry,

Virginia 23218-0446, telephone 804-371-8200.

900 Natural Resources Dr. Suite 800, Charlottesville, VA 22903,

434-977-6555.

Waste Motor Oil Burning Equipment Credit

A business that operates a business facility in Virginia that

Land Preservation Tax Credit

accepts waste motor oil from the public is allowed a tax credit equal

This tax credit is for taxpayers that convey land or interest in

to 50% of the purchase price paid for equipment during the taxable

land located in Virginia to a public or private agency eligible to

year, provided that the equipment is used exclusively for burning

hold such land or interests therein for conservation or preservation

waste motor oil at the business facility. The total credit allowed to

purposes. The conveyance must be in perpetuity. The credit for

any taxpayer in any taxable year of purchase is limited to $5,000.

2006 is 50% and the credit for 2007 is 40% of the fair market value,

Taxpayers successfully applying for equipment certiﬁ cation with the

as substantiated by a “qualiﬁ ed appraisal” prepared by a “qualiﬁ ed

Department of Environmental Quality by ﬁ ling Form DEQ 50-12 will

appraiser”, as those terms are deﬁ ned under applicable federal

receive a statement from that agency certifying that the equipment

law and regulations governing charitable contributions. The credit

is used for burning waste motor oil. For additional information

claimed by a taxpayer cannot exceed the lesser of income tax due

concerning equipment qualifying for this credit or to apply for tax

or $100,000 for 2002 and beyond. Any unused credit prior to 2007

credit certiﬁ cation, contact: Virginia Department of Environmental

may be carried forward for the next 5 taxable years. Any unused

Quality, Attention: Equipment Certiﬁ cation Ofﬁ cer, P. O. Box

credit for 2007 and beyond may be carried forward for the next 10

10009, Richmond, VA 23240-0009, or call 804-698-4145.

years. Any taxpayer holding a Land Preservation tax credit that

originated on or after January 1, 2002 may transfer unused but

Credit for Purchase of Long-Term Care Insurance

otherwise allowable credit for use by another taxpayer on Virginia

For taxable years beginning on or after January 1, 2006, any

income tax returns.

individual will be entitled to a credit against his income tax liability

If this credit is taken, for the next three years taxpayers cannot

for certain long-term care insurance premiums paid by the individual

take a subtraction for the gain on the sale of land or easements

during the taxable year pursuant to an insurance policy entered

dedicated to open-space use. A subtraction is allowed for any gain

into on or after January 1, 2006. The amount of the credit for each

or income recognized by a taxpayer on the application of a Land

taxable year shall equal 15% of the amount paid by the individual

Preservation tax credit against a Virginia income tax liability; to the

during the taxable year in long-term care insurance premiums for

extent the gain is included in and not otherwise subtracted from

long-term care insurance coverage for himself, but in no event

federal adjusted gross income. The transfer of the credit and its

shall the total credits over the life of any policy exceed 15% of

application against a tax liability shall not create gain or loss for the

the amount of premiums paid for the ﬁ rst 12 months of coverage.

transferor or the transferee.

If the amount of the credit exceeds the individual’s income tax

Before claiming the credit, complete and ﬁ le Form LPC with the

liability for the taxable year, the amount that exceeds the liability

Department within 90 days of the credit origination or the transfer

may be carried over for credit against the income taxes in the next

of the credit, but at least 90 days before ﬁ ling an annual return.

ﬁ ve taxable years or until the full credit is used, whichever occurs

This form is used to notify the Department of a donation of land

ﬁ rst. This credit may not be claimed if the individual has claimed a

or interest in land that creates a Land Preservation credit or the

federal or state deduction for long-term care insurance premiums.

transfer of unused credit to another taxpayer. Upon receipt of Form

For more information, contact: Virginia Dept. of Taxation, Tax

LPC, the Department will issue you an Acknowledgment letter. To

Credit Unit, P.O. Box 715, Richmond, VA 23218-0715, or call

avoid delays at the time of return processing, attach the Form LPC

804-786-2992.

Acknowledgment letter to your return. For assistance contact the

Home Accessibility Features for the Disabled Tax Credit

Virginia Dept. of Taxation, Tax Credit Unit, P. O. Box 715, Richmond,

Individuals may be eligible for an income tax credit of 25% of the

VA 23218-0715, or call 804-786-2992.

amount spent for retroﬁ tting their homes with accessibility features

Political Contributions Credit

for the disabled. The credit may not exceed $500 or the tax liability,

Establishes a tax credit for individuals who make contributions

whichever is less. This credit is non-refundable. Unused credits may

to candidates for state or local political ofﬁ ce equal to 50 percent of

be carried forward for up to ﬁ ve years. Individuals must obtain pre-

the amount of the contribution, subject to a $25 limit for individuals

approval from the Department of Taxation using Form HAC before

and a $50 limit for married taxpayers ﬁ ling jointly.

claiming the credit on their income tax return. The maximum home

accessibility features credits granted to all individuals is limited to

Coalﬁ eld Employment Enhancement Tax Credit

$1,000,000 annually. If total credits exceed this amount, each will be

For taxable years beginning on or after January 1, 1996, but

prorated. For more information, contact: Virginia Dept. of Taxation,

before January 1, 2015 a tax credit may be earned by indi viduals,

Tax Credit Unit, P. O. Box 715, Richmond, VA 23218-0715, or

estates, trusts and corporations who have an eco nomic ownership

call 804-786-2992.

interest in coal mined in Virginia. Credits may be claimed for taxable

years beginning on or after January 1, 1999. Compute the allowable

Riparian Forest Buffer Protection for Waterways Tax Credit

credit on Form 306 and report it on Schedule CR for the tax year

Individuals and corporations may qualify for an income tax credit

in which the credit is claimed and/or earned. If you are reporting

of 25% of the value of the timber on an area designated as a riparian

an earned amount for the 2006 tax year, you must also check the

buffer for a waterway. The credit may not exceed $17,500 or the

appropriate box on your return.

total amount of tax, whichever is less. To apply for this credit, ﬁ le

Department of Forestry (DOF) Form 179 with DOF or apply on line

Virginia Coal Employment and Production Incentive Tax Credit

at If you are approved for this credit, DOF will

This credit may be allocated between a qualifying electricity

send you a Tax Credit Certiﬁ cate which should be attached to your

generator and qualifying person with an economic interest in coal. The

Schedule CR

allocation of this credit may not exceed $3 per ton. All credits earned

A riparian buffer is land adjacent to a waterway on which timber

on or after January 1, 2006 or prior to July 1, 2011 which are allocated

may be harvested. In order to receive the credit, the owner of such

to persons with an economic interest in coal may be redeemed by the

land must refrain from harvesting more than 50% of such timber.

Tax Commissioner if the credits exceed the taxpayer’s state tax liability

The buffer must be at least 35 feet wide and no more than 300

for the applicable taxable year. You must complete the Form 306, Form

feet. There must be a Stewardship Plan and annual certiﬁ cation of

306T and its attachments to claim this credit.

compliance for each tract. The buffer must remain in place for at

Virginia Schedule Cr Instructions - Credit Computation Schedule - For Use With Forms 760, 760py, 763 And 765 - 2006 Page 4

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