Can the allowable credit exceed a taxpayer’s tax liability?
No, the allowable credit may not exceed the taxpayer’s tax liability.
Do domestic exports qualify for this credit?
No, only international shipments qualify for the Barge and Rail Usage Credit.
What is considered a “maritime port facility”?
A maritime port facility is the port in Virginia where the cargo is first loaded to or unloaded from a ship or barge. Only cargo being shipped through maritime port facilities qualifies for purposes of this credit.
What is an “LCL”?
A less than container load (LCL) is cargo insufficient in either weight or volume to qualify for the freight rates that apply to a standard shipping container and is therefore combined with cargo owned by other shippers or with cargo intended for at least one other consignee. An LCL does not qualify as a TEU for purposes of this credit.
What is the maximum amount of credits that may be claimed in a year?
The total amount of Barge and Rail Usage Tax Credits granted cannot exceed $500,000 in any fiscal year. If the amount of credits applied for exceeds $500,000, the Department will allocate all credits on a pro rata basis.
Where must applications for the tax credit be sent?
All applications must be sent to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715