Can a company apply the International Trade Facility Tax Credit to the same jobs as the Port of Virginia Economic Infrastructure Development Grant or the Major Business Facility Job Tax Credit?
No, a company may not claim the same jobs for this credit, the Port of Virginia Economic and Infrastructure Development Grant, or the Major Business Facility Job Tax Credit.
Can affiliated companies combine employees to qualify for the credit?
Yes, two or more affiliated companies may elect to aggregate the number of jobs created for qualified full-time employees as the result of the establishment or expansion by the individual companies to qualify for this credit.
How are “affiliated companies” defined?
"Affiliated companies" are two or more companies related to each other such that one company owns at least 80% of the voting power of the other (or others), or at least 80% of the voting power of two or more companies is owned by the same interests.
What additional documentation is needed from Form ITF?
Enclose Virginia Port Authority (VPA) validation summaries for current and preceding taxable years. Also retain a copy of any supporting documentation of capital investments for the company’s records. Examples of supporting documentation may include any of the following: proof of purchase, such as an invoice or receipt; proof of payment, such as a canceled check, bank statement, or credit card statement; or the depreciation worksheet for federal Form 4562 that supports capital investments being claimed/reported.
What is the maximum amount of credits that may be claimed in a year?
No more than $1.25 million in tax credits can be issued in any fiscal year. If the amount of tax credits requested exceeds $1.25 million, the credits would be allocated proportionately among all qualified taxpayers.
Where are applications for the tax credit to be sent?
All applications must be sent to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
Can unused tax credits be carried over?
The amount of the credit is limited to 50% of the taxpayer's tax liability for the taxable year. Any unused credit amount can be carried forward for 10 years.