{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-332.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-332.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-332.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-332.2.html"}],"law_id":65718,"edition_id":1,"section_id":65718,"structure_id":14016,"section_number":"58.1-332.2","catch_line":"(Applicable for taxable years beginning on or after January 1, 2007) Definition of income tax","history":"2012, c. 292.","full_text":"A\n\nFor purposes of the credits in §§ 58.1-332 and 58.1-332.1, the term “income tax” is a term of art that refers to a specific type of tax levied on earned and unearned income and shall not include any other type of tax merely because it may be measured by or referenced to gross or net income. An income tax includes, but is not limited to, a tax imposed on all income of an individual if a resident, or all income of an individual from the jurisdiction’s sources if a nonresident; however, an income tax so imposed may incorporate other provisions that grant exemptions, exclusions, deductions, subtractions, credits, or other preferences for specific types of income, expenses, individuals, or other criteria.B\n\nAn income tax shall not include:1\n\nA tax conditioned upon the exercise of any franchise, privilege, or business within the jurisdiction even though the tax is measured or based upon gross or net income derived therefrom, but such measure does not include income that the person exercising such franchise, privilege, or business may receive from other sources within the jurisdiction.2\n\nLicense and occupation taxes, which are payable in respect to the privilege of engaging in or carrying on a particular business or vocation, even though the amount of tax payable by an individual may be measured by the amount of business which he transacts or his earnings therefrom, but such measure does not include income that the person engaging in or carrying on a particular business or vocation may receive from other sources within the jurisdiction.C\n\nThe credits in §§ 58.1-332 and 58.1-332.1 shall apply only when the tax imposed in the other state or foreign country is substantially similar to the tax imposed by Article 2 (§ 58.1-320 et seq.), as defined by this section. The nomenclature used to describe the tax of the other jurisdiction shall not be binding on Virginia for this purpose whether such nomenclature is that of the other jurisdiction’s legislature or courts or the United States Congress or courts.","order_by":null,"text":{"0":{"id":238897,"text":"For purposes of the credits in §§ 58.1-332 and 58.1-332.1, the term “income tax” is a term of art that refers to a specific type of tax levied on earned and unearned income and shall not include any other type of tax merely because it may be measured by or referenced to gross or net income. An income tax includes, but is not limited to, a tax imposed on all income of an individual if a resident, or all income of an individual from the jurisdiction’s sources if a nonresident; however, an income tax so imposed may incorporate other provisions that grant exemptions, exclusions, deductions, subtractions, credits, or other preferences for specific types of income, expenses, individuals, or other criteria.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":238898,"text":"An income tax shall not include:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":238899,"text":"A tax conditioned upon the exercise of any franchise, privilege, or business within the jurisdiction even though the tax is measured or based upon gross or net income derived therefrom, but such measure does not include income that the person exercising such franchise, privilege, or business may receive from other sources within the jurisdiction.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":238900,"text":"License and occupation taxes, which are payable in respect to the privilege of engaging in or carrying on a particular business or vocation, even though the amount of tax payable by an individual may be measured by the amount of business which he transacts or his earnings therefrom, but such measure does not include income that the person engaging in or carrying on a particular business or vocation may receive from other sources within the jurisdiction.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"4":{"id":238901,"text":"The credits in §§ 58.1-332 and 58.1-332.1 shall apply only when the tax imposed in the other state or foreign country is substantially similar to the tax imposed by Article 2 (§ 58.1-320 et seq.), as defined by this section. The nomenclature used to describe the tax of the other jurisdiction shall not be binding on Virginia for this purpose whether such nomenclature is that of the other jurisdiction’s legislature or courts or the United States Congress or courts.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2"}},"ancestry":[{"id":14016,"edition_id":1,"name":"Tax Credits for Individuals","identifier":"3","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:46:37","date_modified":"2026-06-26 03:46:37","permalink":{"id":254153,"object_type":"structure","relational_id":14016,"identifier":"3","token":"58.1\/I\/3\/3","url":"\/58.1\/I\/3\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79817,"structure_id":14016,"section_number":"58.1-330","catch_line":"Repealed","url":"\/58.1-330\/","token":"58.1\/I\/3\/3\/58.1-330","metadata":false},{"id":69848,"structure_id":14016,"section_number":"58.1-331","catch_line":"Repealed","url":"\/58.1-331\/","token":"58.1\/I\/3\/3\/58.1-331","metadata":false},{"id":85325,"structure_id":14016,"section_number":"58.1-332","catch_line":"Credits for taxes paid other states","url":"\/58.1-332\/","token":"58.1\/I\/3\/3\/58.1-332","metadata":false},{"id":77703,"structure_id":14016,"section_number":"58.1-332.1","catch_line":"Credit for taxes paid to a foreign country on retirement income","url":"\/58.1-332.1\/","token":"58.1\/I\/3\/3\/58.1-332.1","metadata":false},{"id":65718,"structure_id":14016,"section_number":"58.1-332.2","catch_line":"(Applicable for taxable years beginning on or after January 1, 2007) Definition of income tax","url":"\/58.1-332.2\/","token":"58.1\/I\/3\/3\/58.1-332.2","metadata":false},{"id":72337,"structure_id":14016,"section_number":"58.1-333","catch_line":"Repealed","url":"\/58.1-333\/","token":"58.1\/I\/3\/3\/58.1-333","metadata":false},{"id":73300,"structure_id":14016,"section_number":"58.1-334","catch_line":"Tax credit for purchase of conservation tillage equipment","url":"\/58.1-334\/","token":"58.1\/I\/3\/3\/58.1-334","metadata":false},{"id":64999,"structure_id":14016,"section_number":"58.1-335","catch_line":"Repealed","url":"\/58.1-335\/","token":"58.1\/I\/3\/3\/58.1-335","metadata":false},{"id":76356,"structure_id":14016,"section_number":"58.1-336","catch_line":"Repealed","url":"\/58.1-336\/","token":"58.1\/I\/3\/3\/58.1-336","metadata":false},{"id":80901,"structure_id":14016,"section_number":"58.1-337","catch_line":"Tax credit for purchase of conservation tillage and precision agriculture equipment","url":"\/58.1-337\/","token":"58.1\/I\/3\/3\/58.1-337","metadata":false},{"id":84005,"structure_id":14016,"section_number":"58.1-338","catch_line":"Expired","url":"\/58.1-338\/","token":"58.1\/I\/3\/3\/58.1-338","metadata":false},{"id":68217,"structure_id":14016,"section_number":"58.1-339","catch_line":"Repealed","url":"\/58.1-339\/","token":"58.1\/I\/3\/3\/58.1-339","metadata":false},{"id":66380,"structure_id":14016,"section_number":"58.1-339.1","catch_line":"Repealed","url":"\/58.1-339.1\/","token":"58.1\/I\/3\/3\/58.1-339.1","metadata":false},{"id":61287,"structure_id":14016,"section_number":"58.1-339.10","catch_line":"Riparian forest buffer protection for waterways tax credit","url":"\/58.1-339.10\/","token":"58.1\/I\/3\/3\/58.1-339.10","metadata":false},{"id":84695,"structure_id":14016,"section_number":"58.1-339.11","catch_line":"Repealed","url":"\/58.1-339.11\/","token":"58.1\/I\/3\/3\/58.1-339.11","metadata":false},{"id":68389,"structure_id":14016,"section_number":"58.1-339.12","catch_line":"Farm wineries and vineyards tax credit","url":"\/58.1-339.12\/","token":"58.1\/I\/3\/3\/58.1-339.12","metadata":false},{"id":65669,"structure_id":14016,"section_number":"58.1-339.13","catch_line":"Reforestation and afforestation tax credit","url":"\/58.1-339.13\/","token":"58.1\/I\/3\/3\/58.1-339.13","metadata":false},{"id":74716,"structure_id":14016,"section_number":"58.1-339.14","catch_line":"Firearm safety device tax credit","url":"\/58.1-339.14\/","token":"58.1\/I\/3\/3\/58.1-339.14","metadata":false},{"id":68940,"structure_id":14016,"section_number":"58.1-339.2","catch_line":"Historic rehabilitation tax credit","url":"\/58.1-339.2\/","token":"58.1\/I\/3\/3\/58.1-339.2","metadata":false},{"id":65078,"structure_id":14016,"section_number":"58.1-339.3","catch_line":"Agricultural best management practices tax credit","url":"\/58.1-339.3\/","token":"58.1\/I\/3\/3\/58.1-339.3","metadata":false},{"id":62148,"structure_id":14016,"section_number":"58.1-339.4","catch_line":"Qualified equity and subordinated debt investments tax credit","url":"\/58.1-339.4\/","token":"58.1\/I\/3\/3\/58.1-339.4","metadata":false},{"id":69444,"structure_id":14016,"section_number":"58.1-339.5","catch_line":"Repealed","url":"\/58.1-339.5\/","token":"58.1\/I\/3\/3\/58.1-339.5","metadata":false},{"id":64454,"structure_id":14016,"section_number":"58.1-339.6","catch_line":"Political candidate contribution tax credit","url":"\/58.1-339.6\/","token":"58.1\/I\/3\/3\/58.1-339.6","metadata":false},{"id":77593,"structure_id":14016,"section_number":"58.1-339.7","catch_line":"Livable Home Tax Credit","url":"\/58.1-339.7\/","token":"58.1\/I\/3\/3\/58.1-339.7","metadata":false},{"id":59088,"structure_id":14016,"section_number":"58.1-339.8","catch_line":"Income tax credit for low-income taxpayers","url":"\/58.1-339.8\/","token":"58.1\/I\/3\/3\/58.1-339.8","metadata":false},{"id":55105,"structure_id":14016,"section_number":"58.1-339.9","catch_line":"Repealed","url":"\/58.1-339.9\/","token":"58.1\/I\/3\/3\/58.1-339.9","metadata":false}],"previous_section":{"id":77703,"structure_id":14016,"section_number":"58.1-332.1","catch_line":"Credit for taxes paid to a foreign country on retirement income","url":"\/58.1-332.1\/","token":"58.1\/I\/3\/3\/58.1-332.1","metadata":false},"next_section":{"id":72337,"structure_id":14016,"section_number":"58.1-333","catch_line":"Repealed","url":"\/58.1-333\/","token":"58.1\/I\/3\/3\/58.1-333","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-332.2\/","history_text":"

This law was first created in 2012. The record of its establishment is cataloged in chapter 292<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":85325,"section_number":"58.1-332","catch_line":"Credits for taxes paid other states","order_by":null,"url":"\/58.1-332\/"},{"id":77703,"section_number":"58.1-332.1","catch_line":"Credit for taxes paid to a foreign country on retirement income","order_by":null,"url":"\/58.1-332.1\/"}],"permalink":{"id":254171,"object_type":"law","relational_id":65718,"identifier":"58.1-332.2","token":"58.1\/I\/3\/3\/58.1-332.2","url":"\/58.1-332.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-332.2\/","token":"58.1\/I\/3\/3\/58.1-332.2","dublin_core":{"Title":"(Applicable for taxable years beginning on or after January 1, 2007) Definition of income tax","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-332.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For purposes of the credits in §§ 58.1-332<\/a> and 58.1-332.1<\/a>, the term “income tax” is a term of art that refers to a specific type of tax levied on earned and unearned income and shall not include any other type of tax merely because it may be measured by or referenced to gross or net income. An income tax includes, but is not limited to, a tax imposed on all income of an individual<\/span> if a resident<\/span>, or all income of an individual<\/span> from the jurisdiction<\/span>’s sources if a nonresident; however, an income tax so imposed may incorporate other provisions that grant exemptions, exclusions, deductions, subtractions, credits, or other preferences for specific types of income, expenses, individuals<\/span>, or other criteria. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> An income tax shall not include: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A tax conditioned upon the exercise of any franchise, privilege<\/span>, or business within the jurisdiction<\/span> even though the tax is measured or based upon gross or net income derived therefrom, but such measure does not include income that the person exercising such franchise, privilege<\/span>, or business may receive from other sources within the jurisdiction<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> License and occupation taxes, which are payable in respect to the privilege<\/span> of engaging in or carrying on a particular business or vocation, even though the amount of tax payable by an individual<\/span> may be measured by the amount of business which he transacts or his earnings therefrom, but such measure does not include income that the person engaging in or carrying on a particular business or vocation may receive from other sources within the jurisdiction<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The credits in §§ 58.1-332<\/a> and 58.1-332.1<\/a> shall apply only when the tax imposed in the other state or foreign country is substantially similar to the tax imposed by Article 2 (§ 58.1-320<\/a> et seq.), as defined by this section. The nomenclature used to describe the tax of the other jurisdiction<\/span> shall not be binding on Virginia for this purpose whether such nomenclature is that of the other jurisdiction<\/span>’s legislature or courts<\/span> or the United States Congress or courts<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n(APPLICABLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2007) DEFINITION\nOF INCOME TAX (\u00a7 58.1-332.2)\n\nA. For purposes of the credits in §§ 58.1-332 and 58.1-332.1, the term\n“income tax” is a term of art that refers to a specific type of tax\nlevied on earned and unearned income and shall not include any other type of tax\nmerely because it may be measured by or referenced to gross or net income. An\nincome tax includes, but is not limited to, a tax imposed on all income of an\nindividual if a resident, or all income of an individual from the\njurisdiction’s sources if a nonresident; however, an income tax so imposed\nmay incorporate other provisions that grant exemptions, exclusions, deductions,\nsubtractions, credits, or other preferences for specific types of income,\nexpenses, individuals, or other criteria.\n\nB. An income tax shall not include:\n\n 1. A tax conditioned upon the exercise of any franchise, privilege, or\n business within the jurisdiction even though the tax is measured or based upon\n gross or net income derived therefrom, but such measure does not include\n income that the person exercising such franchise, privilege, or business may\n receive from other sources within the jurisdiction.\n\n 2. License and occupation taxes, which are payable in respect to the privilege\n of engaging in or carrying on a particular business or vocation, even though\n the amount of tax payable by an individual may be measured by the amount of\n business which he transacts or his earnings therefrom, but such measure does\n not include income that the person engaging in or carrying on a particular\n business or vocation may receive from other sources within the jurisdiction.\n\nC. The credits in §§ 58.1-332 and 58.1-332.1 shall apply only when the\ntax imposed in the other state or foreign country is substantially similar to\nthe tax imposed by Article 2 (§ 58.1-320 et seq.), as defined by this\nsection. The nomenclature used to describe the tax of the other jurisdiction\nshall not be binding on Virginia for this purpose whether such nomenclature is\nthat of the other jurisdiction’s legislature or courts or the United\nStates Congress or courts.\n\nHISTORY: 2012, c. 292.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}