Can the allowable credit exceed a company’s tax liability?
No, the allowable credit may not exceed the company’s tax liability.
Can two part-time employees be combined to qualify as one “equivalent” full-time employee?
Yes, the hours of two part-time employees may be combined to qualify as one full-time employee, as long as the combined number of hours worked meets the requirements. The combined number of hours worked must be equal to or greater than 35 hours per week for the entire year, or 35 hours per week for the portion of the taxable year in which the employees were initially hired for, or transferred to, the facility in Virginia.
Can a contractor or subcontractor qualify as an eligible employee?
Yes, if they are permanently assigned to the taxpayer’s major business facility. The taxpayer must be able to provide evidence to the Department of a contractual agreement with the contractor or subcontractor prohibiting the contractor or subcontractor from also claiming these employees in order to receive a credit under this section.
What information is needed for each employee in order to complete Form 304?
The following information will be needed for each eligible employee: name, date of hire, Social Security number, number of full months employed during the credit year, brief position description, and the number of hours worked per week.
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