{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-408.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-408.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-408.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-408.html"}],"law_id":86858,"edition_id":1,"section_id":86858,"structure_id":13460,"section_number":"58.1-408","catch_line":"What income apportioned and how","history":"Code 1950, \u00a7 58-151.041; 1971, Ex. Sess., c. 171; 1981, c. 402; 1984, c. 675; 1999, cc. 158, 186; 2009, c. 821; 2012, cc. 86, 666; 2015, cc. 92, 237; 2018, cc. 801, 802, 807.","full_text":"A\n\nThe Virginia taxable income of any corporation, except those subject to the provisions of § 58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422, 58.1-422.1, 58.1-422.2, or 58.1-422.3, excluding income allocable under § 58.1-407, shall be apportioned to the Commonwealth by multiplying such income by a fraction, the numerator of which is the property factor plus the payroll factor, plus twice the sales factor, and the denominator of which is four; however, where the sales factor does not exist, the denominator of the fraction shall be the number of existing factors and where the sales factor exists but the payroll factor or the property factor does not exist, the denominator of the fraction shall be the number of existing factors plus one.B\n\nAny eligible company, as defined in § 58.1-405.1, may subtract from the numerator of the corresponding factor the value of its (i) property acquired in any qualified locality or qualified localities, as defined in § 58.1-405.1, on or after January 1, 2018, but before January 1, 2025; (ii) payroll attributable to jobs created on or after January 1, 2018, but before January 1, 2025, in any qualified locality or qualified localities; and (iii) sales in the Commonwealth during the taxable year. Such eligible company may make such modification for the taxable year in which it first becomes eligible and for the six subsequent, consecutive taxable years, except for any year in which the eligible company’s (a) total, cumulative new capital investment falls below the applicable initial threshold or (b) number of new jobs falls below the applicable initial threshold.","order_by":null,"text":{"0":{"id":310977,"text":"The Virginia taxable income of any corporation, except those subject to the provisions of § 58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422, 58.1-422.1, 58.1-422.2, or 58.1-422.3, excluding income allocable under § 58.1-407, shall be apportioned to the Commonwealth by multiplying such income by a fraction, the numerator of which is the property factor plus the payroll factor, plus twice the sales factor, and the denominator of which is four; however, where the sales factor does not exist, the denominator of the fraction shall be the number of existing factors and where the sales factor exists but the payroll factor or the property factor does not exist, the denominator of the fraction shall be the number of existing factors plus one.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":310978,"text":"Any eligible company, as defined in § 58.1-405.1, may subtract from the numerator of the corresponding factor the value of its (i) property acquired in any qualified locality or qualified localities, as defined in § 58.1-405.1, on or after January 1, 2018, but before January 1, 2025; (ii) payroll attributable to jobs created on or after January 1, 2018, but before January 1, 2025, in any qualified locality or qualified localities; and (iii) sales in the Commonwealth during the taxable year. Such eligible company may make such modification for the taxable year in which it first becomes eligible and for the six subsequent, consecutive taxable years, except for any year in which the eligible company’s (a) total, cumulative new capital investment falls below the applicable initial threshold or (b) number of new jobs falls below the applicable initial threshold.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"ancestry":[{"id":13460,"edition_id":1,"name":"Taxation of Corporations","identifier":"10","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:56","date_modified":"2026-06-26 03:44:56","permalink":{"id":253359,"object_type":"structure","relational_id":13460,"identifier":"10","token":"58.1\/I\/3\/10","url":"\/58.1\/I\/3\/10\/","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":60955,"structure_id":13460,"section_number":"58.1-400","catch_line":"Imposition of tax","url":"\/58.1-400\/","token":"58.1\/I\/3\/10\/58.1-400","metadata":false},{"id":58533,"structure_id":13460,"section_number":"58.1-400.1","catch_line":"Minimum tax on telecommunications companies","url":"\/58.1-400.1\/","token":"58.1\/I\/3\/10\/58.1-400.1","metadata":false},{"id":77310,"structure_id":13460,"section_number":"58.1-400.2","catch_line":"Taxation of electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers","url":"\/58.1-400.2\/","token":"58.1\/I\/3\/10\/58.1-400.2","metadata":false},{"id":79891,"structure_id":13460,"section_number":"58.1-400.3","catch_line":"Minimum tax on certain electric suppliers","url":"\/58.1-400.3\/","token":"58.1\/I\/3\/10\/58.1-400.3","metadata":false},{"id":85449,"structure_id":13460,"section_number":"58.1-400.4","catch_line":"Minimum tax on home service contract providers","url":"\/58.1-400.4\/","token":"58.1\/I\/3\/10\/58.1-400.4","metadata":false},{"id":75981,"structure_id":13460,"section_number":"58.1-401","catch_line":"Exemptions and exclusions","url":"\/58.1-401\/","token":"58.1\/I\/3\/10\/58.1-401","metadata":false},{"id":56970,"structure_id":13460,"section_number":"58.1-402","catch_line":"Virginia taxable income","url":"\/58.1-402\/","token":"58.1\/I\/3\/10\/58.1-402","metadata":false},{"id":65538,"structure_id":13460,"section_number":"58.1-403","catch_line":"Additional modifications to determine Virginia taxable income for certain corporations","url":"\/58.1-403\/","token":"58.1\/I\/3\/10\/58.1-403","metadata":false},{"id":61129,"structure_id":13460,"section_number":"58.1-404","catch_line":"Reserved","url":"\/58.1-404\/","token":"58.1\/I\/3\/10\/58.1-404","metadata":false},{"id":84403,"structure_id":13460,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","url":"\/58.1-405\/","token":"58.1\/I\/3\/10\/58.1-405","metadata":false},{"id":56464,"structure_id":13460,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","url":"\/58.1-405.1\/","token":"58.1\/I\/3\/10\/58.1-405.1","metadata":false},{"id":56080,"structure_id":13460,"section_number":"58.1-406","catch_line":"Allocation and apportionment of income","url":"\/58.1-406\/","token":"58.1\/I\/3\/10\/58.1-406","metadata":false},{"id":56963,"structure_id":13460,"section_number":"58.1-407","catch_line":"How dividends allocated","url":"\/58.1-407\/","token":"58.1\/I\/3\/10\/58.1-407","metadata":false},{"id":86858,"structure_id":13460,"section_number":"58.1-408","catch_line":"What income apportioned and how","url":"\/58.1-408\/","token":"58.1\/I\/3\/10\/58.1-408","metadata":false},{"id":76197,"structure_id":13460,"section_number":"58.1-409","catch_line":"Property factor","url":"\/58.1-409\/","token":"58.1\/I\/3\/10\/58.1-409","metadata":false},{"id":54428,"structure_id":13460,"section_number":"58.1-410","catch_line":"Valuation of property owned or rented","url":"\/58.1-410\/","token":"58.1\/I\/3\/10\/58.1-410","metadata":false},{"id":80735,"structure_id":13460,"section_number":"58.1-411","catch_line":"Average value of property","url":"\/58.1-411\/","token":"58.1\/I\/3\/10\/58.1-411","metadata":false},{"id":60991,"structure_id":13460,"section_number":"58.1-412","catch_line":"Payroll factor","url":"\/58.1-412\/","token":"58.1\/I\/3\/10\/58.1-412","metadata":false},{"id":65358,"structure_id":13460,"section_number":"58.1-413","catch_line":"When compensation deemed paid or accrued in this Commonwealth","url":"\/58.1-413\/","token":"58.1\/I\/3\/10\/58.1-413","metadata":false},{"id":74292,"structure_id":13460,"section_number":"58.1-414","catch_line":"Sales factor","url":"\/58.1-414\/","token":"58.1\/I\/3\/10\/58.1-414","metadata":false},{"id":78515,"structure_id":13460,"section_number":"58.1-415","catch_line":"When sales of tangible personal property deemed in the Commonwealth","url":"\/58.1-415\/","token":"58.1\/I\/3\/10\/58.1-415","metadata":false},{"id":55363,"structure_id":13460,"section_number":"58.1-416","catch_line":"(Contingent effective date \u2014 See Editor's note) When certain other sales deemed in the Commonwealth","url":"\/58.1-416\/","token":"58.1\/I\/3\/10\/58.1-416","metadata":false},{"id":86205,"structure_id":13460,"section_number":"58.1-417","catch_line":"Motor carriers; apportionment","url":"\/58.1-417\/","token":"58.1\/I\/3\/10\/58.1-417","metadata":false},{"id":71471,"structure_id":13460,"section_number":"58.1-418","catch_line":"Financial corporations; apportionment","url":"\/58.1-418\/","token":"58.1\/I\/3\/10\/58.1-418","metadata":false},{"id":87267,"structure_id":13460,"section_number":"58.1-419","catch_line":"Construction corporations; apportionment","url":"\/58.1-419\/","token":"58.1\/I\/3\/10\/58.1-419","metadata":false},{"id":61390,"structure_id":13460,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","url":"\/58.1-420\/","token":"58.1\/I\/3\/10\/58.1-420","metadata":false},{"id":54421,"structure_id":13460,"section_number":"58.1-421","catch_line":"Alternative method of allocation","url":"\/58.1-421\/","token":"58.1\/I\/3\/10\/58.1-421","metadata":false},{"id":75896,"structure_id":13460,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","url":"\/58.1-422\/","token":"58.1\/I\/3\/10\/58.1-422","metadata":false},{"id":56837,"structure_id":13460,"section_number":"58.1-422.1","catch_line":"Retail companies; apportionment","url":"\/58.1-422.1\/","token":"58.1\/I\/3\/10\/58.1-422.1","metadata":false},{"id":61386,"structure_id":13460,"section_number":"58.1-422.2","catch_line":"Apportionment; taxpayers with enterprise data center operations","url":"\/58.1-422.2\/","token":"58.1\/I\/3\/10\/58.1-422.2","metadata":false},{"id":54726,"structure_id":13460,"section_number":"58.1-422.3","catch_line":"Debt buyers; apportionment","url":"\/58.1-422.3\/","token":"58.1\/I\/3\/10\/58.1-422.3","metadata":false},{"id":84482,"structure_id":13460,"section_number":"58.1-422.4","catch_line":"Property information and analytics firms","url":"\/58.1-422.4\/","token":"58.1\/I\/3\/10\/58.1-422.4","metadata":false},{"id":76648,"structure_id":13460,"section_number":"58.1-422.5","catch_line":"(Contingent effective date \u2014 See Editor's note) Internet root infrastructure providers","url":"\/58.1-422.5\/","token":"58.1\/I\/3\/10\/58.1-422.5","metadata":false},{"id":63840,"structure_id":13460,"section_number":"58.1-423","catch_line":"Income tax paid by commercial spaceflight entities","url":"\/58.1-423\/","token":"58.1\/I\/3\/10\/58.1-423","metadata":false}],"previous_section":{"id":56963,"structure_id":13460,"section_number":"58.1-407","catch_line":"How dividends allocated","url":"\/58.1-407\/","token":"58.1\/I\/3\/10\/58.1-407","metadata":false},"next_section":{"id":76197,"structure_id":13460,"section_number":"58.1-409","catch_line":"Property factor","url":"\/58.1-409\/","token":"58.1\/I\/3\/10\/58.1-409","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-408\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 times. 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. Those modifications are as follows: in 1981, chapter 402; in 1984, chapter 675; in 1999, chapters 158<\/a> and 186<\/a>; in 2009, chapter 821<\/a>; in 2012, chapters 86<\/a> and 666<\/a>; in 2015, chapters 92<\/a> and 237<\/a>; in 2018, chapters 801<\/a>, 802<\/a>, and 807<\/a>.<\/p>","references":[{"id":84403,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","order_by":null,"url":"\/58.1-405\/"},{"id":56464,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","order_by":null,"url":"\/58.1-405.1\/"},{"id":61390,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","order_by":null,"url":"\/58.1-420\/"},{"id":75896,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","order_by":null,"url":"\/58.1-422\/"}],"refers_to":[{"id":56464,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","order_by":null,"url":"\/58.1-405.1\/"},{"id":56963,"section_number":"58.1-407","catch_line":"How dividends allocated","order_by":null,"url":"\/58.1-407\/"},{"id":86205,"section_number":"58.1-417","catch_line":"Motor carriers; apportionment","order_by":null,"url":"\/58.1-417\/"},{"id":71471,"section_number":"58.1-418","catch_line":"Financial corporations; apportionment","order_by":null,"url":"\/58.1-418\/"},{"id":87267,"section_number":"58.1-419","catch_line":"Construction corporations; apportionment","order_by":null,"url":"\/58.1-419\/"},{"id":61390,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","order_by":null,"url":"\/58.1-420\/"},{"id":75896,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","order_by":null,"url":"\/58.1-422\/"},{"id":56837,"section_number":"58.1-422.1","catch_line":"Retail companies; apportionment","order_by":null,"url":"\/58.1-422.1\/"},{"id":61386,"section_number":"58.1-422.2","catch_line":"Apportionment; taxpayers with enterprise data center operations","order_by":null,"url":"\/58.1-422.2\/"},{"id":54726,"section_number":"58.1-422.3","catch_line":"Debt buyers; apportionment","order_by":null,"url":"\/58.1-422.3\/"}],"permalink":{"id":253413,"object_type":"law","relational_id":86858,"identifier":"58.1-408","token":"58.1\/I\/3\/10\/58.1-408","url":"\/58.1-408\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-408\/","token":"58.1\/I\/3\/10\/58.1-408","dublin_core":{"Title":"What income apportioned and how","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-408","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Virginia taxable income of any corporation<\/span>, except those subject to the provisions of § 58.1-417<\/a>, 58.1-418<\/a>, 58.1-419<\/a>, 58.1-420<\/a>, 58.1-422<\/a>, 58.1-422.1<\/a>, 58.1-422.2<\/a>, or 58.1-422.3<\/a>, excluding income allocable under § 58.1-407<\/a>, shall be apportioned to the Commonwealth by multiplying such income by a fraction, the numerator of which is the property factor plus the payroll factor, plus twice the sales<\/span> factor, and the denominator of which is four; however, where the sales<\/span> factor does not exist, the denominator of the fraction shall be the number of existing factors and where the sales<\/span> factor exists but the payroll factor or the property factor does not exist, the denominator of the fraction shall be the number of existing factors plus one. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any eligible company, as defined in § 58.1-405.1<\/a>, may subtract from the numerator of the corresponding factor the value of its (i) property acquired in any qualified locality or qualified localities, as defined in § 58.1-405.1<\/a>, on or after January 1, 2018, but before January 1, 2025; (ii) payroll attributable to jobs created on or after January 1, 2018, but before January 1, 2025, in any qualified locality or qualified localities; and (iii) sales<\/span> in the Commonwealth during the taxable year. Such eligible company may make such modification for the taxable year in which it first becomes eligible and for the six subsequent, consecutive taxable years, except for any year in which the eligible company’s (a) total, cumulative new capital investment falls below the applicable initial threshold or (b) number of new jobs falls below the applicable initial threshold. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nWHAT INCOME APPORTIONED AND HOW (\u00a7 58.1-408)\n\nA. The Virginia taxable income of any corporation, except those subject to the\nprovisions of § 58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422,\n58.1-422.1, 58.1-422.2, or 58.1-422.3, excluding income allocable under §\n58.1-407, shall be apportioned to the Commonwealth by multiplying such income by\na fraction, the numerator of which is the property factor plus the payroll\nfactor, plus twice the sales factor, and the denominator of which is four;\nhowever, where the sales factor does not exist, the denominator of the fraction\nshall be the number of existing factors and where the sales factor exists but\nthe payroll factor or the property factor does not exist, the denominator of the\nfraction shall be the number of existing factors plus one.\n\nB. Any eligible company, as defined in § 58.1-405.1, may subtract from the\nnumerator of the corresponding factor the value of its (i) property acquired in\nany qualified locality or qualified localities, as defined in § 58.1-405.1,\non or after January 1, 2018, but before January 1, 2025; (ii) payroll\nattributable to jobs created on or after January 1, 2018, but before January 1,\n2025, in any qualified locality or qualified localities; and (iii) sales in the\nCommonwealth during the taxable year. Such eligible company may make such\nmodification for the taxable year in which it first becomes eligible and for the\nsix subsequent, consecutive taxable years, except for any year in which the\neligible company’s (a) total, cumulative new capital investment falls\nbelow the applicable initial threshold or (b) number of new jobs falls below the\napplicable initial threshold.\n\nHISTORY: Code 1950, \u00a7 58-151.041; 1971, Ex. Sess., c. 171; 1981, c. 402; 1984,\nc. 675; 1999, cc. 158, 186; 2009, c. 821; 2012, cc. 86, 666; 2015, cc. 92, 237;\n2018, cc. 801, 802, 807.","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}}