2006 Code of Virginia § 63.2-2003 - Tax credit; amount; limitation; carry over

63.2-2003. Tax credit; amount; limitation; carry over.

A. The Commissioner shall certify to the Department of Taxation, or in thecase of business firms subject to a tax under Article 1 ( 58.1-2500 et seq.)of Chapter 25 or Article 2 ( 58.1-2620 et seq.) of Chapter 26 of Title 58.1,to the State Corporation Commission, the applicability of the tax creditprovided herein for a business firm.

B. A business firm shall be eligible for a credit against the taxes imposedby Articles 2 ( 58.1-320 et seq.) and 10 ( 58.1-400 et seq.) of Chapter 3,Chapter 12 ( 58.1-1200 et seq.), Article 1 ( 58.1-2500 et seq.) of Chapter25, or Article 2 ( 58.1-2620 et seq.) of Chapter 26 of Title 58.1, in anamount equal to forty-five percent of the value of the money, property,professional services, and contracting services donated by the business firmduring its taxable year to neighborhood organizations for programs approvedpursuant to 63.2-2002. No tax credit of less than $400 shall be granted forany donation, and a business firm shall not be allowed a tax credit in excessof $175,000 per taxable year. No tax credit shall be granted to any businessfirm for donations to a neighborhood organization providing job training oreducation for individuals employed by the business firm. Any tax credit notusable for the taxable year the donation was made may be carried over to theextent usable for the next five succeeding taxable years or until the fullcredit has been utilized, whichever is sooner. Credits granted to apartnership, electing small business (Subchapter S) corporation, or limitedliability company shall be allocated to their individual partners,shareholders, or members, respectively, in proportion to their ownership orinterest in such business entities.

C. A tax credit shall be issued by the Commissioner to a business firm uponreceipt of a certification made by a neighborhood organization to whom taxcredits were allocated for an approved program pursuant to 63.2-2002. Thecertification shall identify the type and value of the donation received andthe business firm making the donation. A business firm shall be eligible fora tax credit under this section only to the extent that sufficient taxcredits allocated to the neighborhood organization for an approved projectare available.

(1981, c. 629, 63.1-324; 1982, c. 178; 1984, c. 720; 1986, c. 407; 1989, c.310; 1995, c. 279; 1996, c. 77; 1997, cc. 229, 640; 1999, cc. 890, 909; 2002,c. 747.)

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