{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-339.12.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-339.12.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-339.12.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-339.12.html"}],"law_id":68389,"edition_id":1,"section_id":68389,"structure_id":14016,"section_number":"58.1-339.12","catch_line":"Farm wineries and vineyards tax credit","history":"2011, cc. 214, 226; 2020, cc. 1113, 1114.","full_text":"A\n\nAs used in this section, unless the context requires a different meaning:\n\t\t\t“Qualified capital expenditures” means all expenditures made by the taxpayer for the purchase and installation of barrels, bins, bottling equipment, capsuling equipment, chemicals, corkers, crushers and destemmers, dirt, fermenters, or other recognized fermentation devices, fertilizer and soil amendments, filters, grape harvesters, grape plants, hoses, irrigation equipment, labeling equipment, poles, posts, presses, pumps, refractometers, refrigeration equipment, seeders, tanks, tractors, vats, weeding and spraying equipment, wine tanks, and wire.\n\t\t\t“Virginia vineyard” means agricultural lands located in the Commonwealth consisting of at least one contiguous acre dedicated to the growing of grapes that are used or are intended to be used in the production of wine by a Virginia farm winery as well as any plants or other improvements located thereon.\n\t\t\t“Virginia farm winery” means an establishment located in the Commonwealth that is licensed as a Virginia farm winery pursuant to § 4.1-206.1.B\n\nFor taxable years beginning on and after January 1, 2011, any Virginia farm winery or vineyard shall be entitled to a credit against the tax levied pursuant to §§ 58.1-320 and 58.1-400 for qualified capital expenditures made in connection with the establishment of new Virginia farm wineries or vineyards and capital improvements made to existing Virginia farm wineries or vineyards. The amount of the credit shall be equal to 25 percent of all qualified capital expenditures.C\n\nThe total amount of tax credits available under this section for a calendar year shall not exceed $250,000. In the event that applications for such credit exceed $250,000 for any calendar, the Department of Taxation shall allocate the credits on a pro rata basis.D\n\nIf the amount of the credit exceeds the taxpayer’s tax liability for the taxable year, the excess may be carried over for credit against the income taxes of the taxpayer in the next 10 taxable years, or until the total credit amount has been taken, whichever occurs first.E\n\nFor purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.F\n\nThe credit allowed in this section shall not be claimed to the extent the taxpayer has claimed a deduction for the same expenses for federal income tax purposes under § 179 of the Internal Revenue Code, as amended.","order_by":null,"text":{"0":{"id":247645,"text":"As used in this section, unless the context requires a different meaning:\n\t\t\t“Qualified capital expenditures” means all expenditures made by the taxpayer for the purchase and installation of barrels, bins, bottling equipment, capsuling equipment, chemicals, corkers, crushers and destemmers, dirt, fermenters, or other recognized fermentation devices, fertilizer and soil amendments, filters, grape harvesters, grape plants, hoses, irrigation equipment, labeling equipment, poles, posts, presses, pumps, refractometers, refrigeration equipment, seeders, tanks, tractors, vats, weeding and spraying equipment, wine tanks, and wire.\n\t\t\t“Virginia vineyard” means agricultural lands located in the Commonwealth consisting of at least one contiguous acre dedicated to the growing of grapes that are used or are intended to be used in the production of wine by a Virginia farm winery as well as any plants or other improvements located thereon.\n\t\t\t“Virginia farm winery” means an establishment located in the Commonwealth that is licensed as a Virginia farm winery pursuant to § 4.1-206.1.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":247646,"text":"For taxable years beginning on and after January 1, 2011, any Virginia farm winery or vineyard shall be entitled to a credit against the tax levied pursuant to §§ 58.1-320 and 58.1-400 for qualified capital expenditures made in connection with the establishment of new Virginia farm wineries or vineyards and capital improvements made to existing Virginia farm wineries or vineyards. The amount of the credit shall be equal to 25 percent of all qualified capital expenditures.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":247647,"text":"The total amount of tax credits available under this section for a calendar year shall not exceed $250,000. In the event that applications for such credit exceed $250,000 for any calendar, the Department of Taxation shall allocate the credits on a pro rata basis.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":247648,"text":"If the amount of the credit exceeds the taxpayer’s tax liability for the taxable year, the excess may be carried over for credit against the income taxes of the taxpayer in the next 10 taxable years, or until the total credit amount has been taken, whichever occurs first.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":247649,"text":"For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":247650,"text":"The credit allowed in this section shall not be claimed to the extent the taxpayer has claimed a deduction for the same expenses for federal income tax purposes under § 179 of the Internal Revenue Code, as amended.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"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 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This law was first created in 2011. The record of its establishment is cataloged in chapters 214<\/a> and 226<\/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. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2020, chapters 1113<\/a> and 1114<\/a>.<\/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":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"}],"permalink":{"id":254215,"object_type":"law","relational_id":68389,"identifier":"58.1-339.12","token":"58.1\/I\/3\/3\/58.1-339.12","url":"\/58.1-339.12\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-339.12\/","token":"58.1\/I\/3\/3\/58.1-339.12","dublin_core":{"Title":"Farm wineries and vineyards tax credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-339.12","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, unless the context requires a different meaning:\n\t\t\t“Qualified capital expenditures<\/span>” means all expenditures made by the taxpayer<\/span> for the purchase and installation of barrels, bins, bottling equipment, capsuling equipment, chemicals, corkers, crushers and destemmers, dirt, fermenters, or other recognized fermentation devices, fertilizer and soil amendments, filters, grape harvesters, grape plants, hoses, irrigation equipment, labeling equipment, poles, posts, presses, pumps, refractometers, refrigeration equipment, seeders, tanks, tractors, vats, weeding and spraying equipment, wine tanks, and wire.\n\t\t\t“Virginia vineyard<\/span>” means agricultural lands located in the Commonwealth consisting of at least one contiguous acre dedicated to the growing of grapes that are used or are intended to be used in the production of wine by a Virginia farm winery<\/span> as well as any plants or other improvements located thereon.\n\t\t\t“Virginia farm winery<\/span>” means an establishment located in the Commonwealth that is licensed as a Virginia farm winery<\/span> pursuant to § 4.1-206.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For taxable years beginning on and after January 1, 2011, any Virginia farm winery<\/span> or vineyard shall be entitled to a credit against the tax levied pursuant to §§ 58.1-320<\/a> and 58.1-400<\/a> for qualified capital expenditures<\/span> made in connection with the establishment of new Virginia farm wineries or vineyards and capital improvements made to existing Virginia farm wineries or vineyards. The amount of the credit shall be equal to 25 percent of all qualified capital expenditures<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The total amount of tax credits available under this section for a calendar year shall not exceed $250,000. In the event that applications for such credit exceed $250,000 for any calendar, the Department<\/span> of Taxation shall allocate the credits on a pro rata basis. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If the amount of the credit exceeds the taxpayer<\/span>’s tax liability for the taxable year, the excess may be carried over for credit against the income taxes of the taxpayer<\/span> in the next 10 taxable years, or until the total credit amount has been taken, whichever occurs first. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation<\/span> (S corporation<\/span>), or limited liability company shall be allocated to the individual<\/span> partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The credit allowed in this section shall not be claimed to the extent the taxpayer<\/span> has claimed a deduction for the same expenses for federal income tax purposes under § 179 of the Internal Revenue Code, as amended. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFARM WINERIES AND VINEYARDS TAX CREDIT (\u00a7 58.1-339.12)\n\nA. As used in this section, unless the context requires a different meaning:\n\t\t\t“Qualified capital expenditures” means all expenditures made by\nthe taxpayer for the purchase and installation of barrels, bins, bottling\nequipment, capsuling equipment, chemicals, corkers, crushers and destemmers,\ndirt, fermenters, or other recognized fermentation devices, fertilizer and soil\namendments, filters, grape harvesters, grape plants, hoses, irrigation\nequipment, labeling equipment, poles, posts, presses, pumps, refractometers,\nrefrigeration equipment, seeders, tanks, tractors, vats, weeding and spraying\nequipment, wine tanks, and wire.\n\t\t\t“Virginia vineyard” means agricultural lands located in the\nCommonwealth consisting of at least one contiguous acre dedicated to the growing\nof grapes that are used or are intended to be used in the production of wine by\na Virginia farm winery as well as any plants or other improvements located\nthereon.\n\t\t\t“Virginia farm winery” means an establishment located in the\nCommonwealth that is licensed as a Virginia farm winery pursuant to §\n4.1-206.1.\n\nB. For taxable years beginning on and after January 1, 2011, any Virginia farm\nwinery or vineyard shall be entitled to a credit against the tax levied pursuant\nto §§ 58.1-320 and 58.1-400 for qualified capital expenditures made in\nconnection with the establishment of new Virginia farm wineries or vineyards and\ncapital improvements made to existing Virginia farm wineries or vineyards. The\namount of the credit shall be equal to 25 percent of all qualified capital\nexpenditures.\n\nC. The total amount of tax credits available under this section for a calendar\nyear shall not exceed $250,000. In the event that applications for such credit\nexceed $250,000 for any calendar, the Department of Taxation shall allocate the\ncredits on a pro rata basis.\n\nD. If the amount of the credit exceeds the taxpayer’s tax liability for\nthe taxable year, the excess may be carried over for credit against the income\ntaxes of the taxpayer in the next 10 taxable years, or until the total credit\namount has been taken, whichever occurs first.\n\nE. For purposes of this section, the amount of any credit attributable to a\npartnership, electing small business corporation (S corporation), or limited\nliability company shall be allocated to the individual partners, shareholders,\nor members, respectively, in proportion to their ownership or interest in such\nbusiness entities.\n\nF. The credit allowed in this section shall not be claimed to the extent the\ntaxpayer has claimed a deduction for the same expenses for federal income tax\npurposes under § 179 of the Internal Revenue Code, as amended.\n\nHISTORY: 2011, cc. 214, 226; 2020, cc. 1113, 1114.","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}}